Balancing the Federal Budget

April 2013, After Tax Time:

“I believe that banking institutions are more dangerous to our liberties than standing armies.”   Thomas Jefferson

Consider that the government must make payments of interest and principal of the debt.  That money must come from the taxpayer.  That money then goes to entity that loaned the money by buying U.S. debt such as Treasury bonds.  Consider further that much of that money goes to China!  Thus there is a transfer of money out of the U.S. from the taxpayer to China. This reduces the money in circulation of money in the U.S economy; continued to the ultimate this would result in poverty for the taxpayers.  We have the additional factor of much of our goods being produced overseas giving an added outflow of money from the U.S. economy.

The banks gained greatly by “free trade”.  When a bank, say the Bank of America, loans Mexico $100 million then Mexico needs to sell enough goods in America to earn $100 million plus more to pay back the loan plus interest!  So it is in the interest of the banks to have “free trade” so that they can be repaid.

One should always keep in mind that bankers consider themselves to have the “God given right” to be the exclusive creator of money.  God forbid that a government should consider that it might create money instead of borrowing it from a banker!

From these considerations it becomes apparent that balancing the federal budget in combination with “free trade” must lead to a continuing recession or collapse of the American economy.

This is reinforce by the fact that the only source of money increase in the U.S. economy at this time is by borrowing by the federal government.  This is so because borrowing by companies and individuals while temporarily increasing the money supply results in more debt than money, and this debt must be repaid or canceled out by default such as bankruptcy.