Wednesday, March 28, 2012
$473 trillion of debt PAID OFF in the last 10 years without even so much as a hiccup!
Nice article by Ben Strubel entitled, "Who’s Afraid of the Big, Bad National Debt?" where he points out, as I have in the past, that we "pay off" many trillions $$ each year--far in excess of the amount outstanding--without even so much as a hiccup.
The chart below shows that the U.S. paid off $473 trillion in the past 10 years.
How did we do it?
Simple...the Fed just debits securities accounts and credits reserve accounts. No big deal. Keystrokes on a computer. That's it. Did it cause hyperinflation? No.
Strubel also gets into the insidious and dangerous propaganda campaign of the Congressional Budget Office, which is run by a bunch of fiscal responsibility hacks that continue to pump out tons of misinformation like this:
Reading this stuff is painful. "Reduces the amount of saving devoted to productive capital?" So how would they explain the huge increase in personal savings that came about simultaneously with the explosion in the deficit/debt?
Really amazing. The dogma has become so ingrained that even obvious and unequivocal PROOF of its falsification is ignored.