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There is a solution to the budget

Discussion in 'Economics, Business, and Taxes' started by Days, May 19, 2016.

  1. Days

    Days Governor

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    As of May 18, 2016 we owe...

    $13,836,955,706,806.20 in outstanding Treasuries
    $5,369,561,337,497.34 to Govt Trust Funds (such as Social Security)
    for a Total Public Debt Outstanding $19,206,517,044,303.54 ($19.2 Trillion)

    Total annual federal revenues are roughly $2.5 Trillion. Annual spending is running roughly $3 Trillion. The debt keeps growing. How is the country going to be great again when it is bankrupt? What programs make sense and what programs are a scam and how can we possibly rebuild if there is no funding?

    The real answer to that question lies in the way to fund programs. Once you understand the money, it unveils what programs make sense. We lost gold and silver coin, and trying to revert to them, is a slow process, although, at least for silver coin, that process should be started. In the mean time, to keep living on the money we have, it is high time to pull another Nixon tweak to the currency. In 1972, Nixon stopped redeeming foreign held Treasuries with gold, so what did he replace the gold with? paper. Specifically, Federal Reserve Notes, same as is in your pocket. That was a HUGE tweak. Now it is time to make a further tweak... let's switch the paper we use to redeem the Treasuries from Federal Reserve Notes to United States Notes. By doing this, we can absorb the Treasury auctions into the general fund.

    (US Notes would be in denominations of one, five, ten, 50 and 100 million dollars and could be used by banks for asset reserve the same as new bonds are used - no one gets hurt, the money supply in circulation is unchanged, and the nation's debt remains the same but it no longer matters because it is paid off with those printing presses in our mints)

    This should allow us to retire the wage tax, and by wages I mean personal income under $250,000 per year. Above that, wages begin to take on the appearance of income, as in, corporate profits, which were always taxed. So maybe we could tax personal income from 1/4 million to 1/2 million @ 5%, and from 1/2 million to one million @ 10%, and over one million @15%. That's fair to the rich, and it should balance the Congressional budget... without interrupting the bond sales that banks need.

    The nation will not turn around until we stop taxing wages. The budget will not turn around until we stop retiring old debt with new debt. Americans need to understand these two concepts. They are simple and the answer is simple and it doesn't need legislation, all it needs is a president like Nixon willing to make the changes necessary to fix our US Treasury policy.
     
    Last edited: May 19, 2016
  2. Days

    Days Governor

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    There is no difference between an United States Note and a Federal Reserve Note, it is the exact same money, printed in the exact same mints, actually it was the Federal Reserve Note that copied the United States Note, the Federal Reserve has to pay a printing fee to our mints for preparing their Notes... the two are one and the same money... we call them "Dollars".

    So, what I'm proposing is, we go on printing money for the Federal Reserve and we go on creating Treasuries for sale at the Federal Reserve, but when we redeem the synthetic bonds with our synthetic Notes, we start choosing the type of synthetic Note that isn't given to the Federal Reserve for a mere printing cost, instead we print our notes... the ones we keep... and use the million dollar US Notes to pay off the debt.

    This doesn't change the money one bit, it sticks with the exact same money. It doesn't cause inflation or deflation or any other stupid pretend problem, everything remains unchanged except instead of giving away the million dollar Notes to the FED, we use them for our side of the balance sheet. The money we print in our mints is all given away to the Federal Reserve, but that is totally by choice, we can stop doing that any day we please or we can start printing larger denominations and use them to retire these wage taxes that are killing our economy. This also lowers taxes on the rich, and it solidifies the bond market, there are no losers, no one gets hurt and nothing happens to the value of the dollar, it doesn't affect the money in circulation other than to stop the insane federal wage taxing that is strangling it, the rest of the taxes continue the same.

    The normal reaction to this is, "You can't just print money up out of thin air!"

    Like I said earlier, this is the same exact money we already use. Synthetic money is printed up out of thin air, we have mints that do that. When we create bonds for auction, we printed money out of thin air, it is no different, and those Treasuries are the currency, that's where the money is printed out of thin air. Americans do not understand their own money. Do you own any US saviings bonds? Take one to the bank and cash it, it is money, in fact, the dollars in your pocket are actually written against the bonds, the bonds are our money supply. The bonds are redeemed with the dollars, this is how the system works.

    The initial debt is synthetic, we borrow our own money from the banks, it only makes sense to retire that debt with our own dollars. Our failure to do that - and the use of income taxes to attempt that - is the flaw in the Federal Reserve system that is killing this nation. That flaw was by design, so that the people of the United States would become slaves of the Federal Reserve, the banks know the debt is synthetic and should be retired internally the same way it was created, but they also know you don't understand what they are doing... as long as the bonds are redeemed by the state's own money, it was honest, but the moment we hand the state's money to the banks and force the people to redeem the bonds through taxation... that is no longer taxation, what is being taxed? Nothing, they are taking your wages, it is theft, not a tax.

    The system was designed to retire the debt with dollars. Okay, that ability was in our Constitution. The only change the Federal Reserve made was to give all the dollars to the bank, we literally handed our money off to the central bank... and then turned to income taxes to retire the debt. That flaw has to be repaired. And it is easy to do... just print million dollar bills and use them to pay off these enormous bonds... the bonds are created in the billions.

    IOW, it is high time we sewed up this banking loop hole. This is a shell game, that's all it is. The Federal Reserve designed a brilliant bond currency, but they stole the dollars that redeem the bond. That's how they stole the money. They paid for the bonds, but when the state redeems the bonds, they stole that part, instead of us retiring the bond with our dollar (the US Note) they said, "No, wait, print the dollars in our name (the Federal Reserve Note), so that we own them, now you can try to raise revenue through income taxes to pay off the bonds, DO NOT print any of your own money in your mints, give all the money from the mints to us, we'll pay the printing charges."

    Try to understand that this was the criminal part. Those brilliant luminaries of finance were not called robber barons for nothing, they snookered the nations out of their money. And this is how they did it. You would think, after 100 years, the nation would wake the hell up and fix the currency.
     
    Last edited: May 20, 2016
  3. Days

    Days Governor

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    I have a book written in 1935 that calls the federal debt under the Federal Reserve system a "synthetic debt". I didn't make up that word or the idea, it is a banking definition of the financial instruments.

    Most, if not all, people calling for an overhaul of our money, want to do away with the Federal Reserve. This would be foolish. It takes a long time to grow a currency and no currency was ever larger than the Federal Reserve dollar is today. The world banks on it. When you read about "the dollar" - they are talking about the FED's dollar, not the US dollar. I know I just said they are the same dollar and they are, but the fiat is different, one is controlled by the FED, the other is controlled by the US Treasury.

    We don't have to suffer under this system. We suffer because we are stupid. Printing US Notes in million dollar denominations to redeem the bonds performs the exact same function as printing up new bonds to redeem the old ones. Banks can use the million dollar notes as asset reserve the same as they use the new bonds, and this practice won't change the Treasury auctions any because we will need those to stop taxing wages. The budget ends up looking the same, the debt ends up looking the same, the banks end up with same amount of new bonds... and redemption in dollars for the old bonds - that's the same - the only thing that changes is we the taxpayers are set free, those one percenters get their tax rates cut in third, and the Treasury doesn't have to sweat the bond redemption any more.

    Funny thing happens when you go to my tax rates in the top post... revenues increase for the high end, probably enough to make up for losing the wage tax... it sounds crazy but this is what the rich have been telling you; something is better than nothing, and when you try to charge the rich a high tax rate, you end up getting nothing.

    If the tax plan is revenue neutral or close to it, and the bond auctions begin dumping over $100 Billion into the general fund every month, suddenly you can pay for college for every American, and you can fix bridges and you can finance elections, and you can set up a single payer health insurance (although that won't cost anything to run, but it costs something to set up) and you can hold onto Social Security and medicare.

    ... or we can keep doing what we are doing and the nation will totally collapse under the weight of its bond redemption. take your choice. I know a lot of you just hate the idea of fixing the money, we are always scared of the unknown. Even after I explain it for the simple system that it is, you are still scared, after 100 years of serving your masters the bankers, you dare not upset them. Your mantra is, "what? are you crazy? don't touch anything!" What you don't understand is the bankers have been trying to figure out this fix for themselves all along... they know the bond is unstable. This works for everyone, including the bankers and especially the rich and middle class. About the only person who won't notice much difference is me, because I'm poor. But it should create jobs for my son's generation, so its all good.
     
    Last edited: May 20, 2016

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