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.
great article, love the comments below the article. blah blah blah Peter Schiff blah blah blah Ron Paul blah blah blah Austrian economics. blah blah blah Ben Bernake.
ReplyDeleteI find these in greater proportion than the proportion of actual Libertarian-Austrian school followers. I think either they get paid to post or it's maybe a cult
Ok, the Fiscal Wakeup Tour can go back to sleep now.
ReplyDeleteMiller,
ReplyDeleteCNBC out with some US survey results today, this is depressing:
"Gold has taken over perceptions across the public as being a good investment. If not first, gold comes in as a very close second among investors," said pollster Jay Campbell of Hart Research, which conducts the quarterly survey for CNBC. Overall, 37 percent of respondents said gold is the "best investment," with real estate at 24 percent and stocks coming in third at 19 percent."
The people look at gold as the best investment right now, 37%, I think US bonds are below 10%.... a dug up metal is looked at as "the best investment". Pretty sad....
http://www.cnbc.com/id/46838037
When the pub;ic heavily into anything, that's a contrary indicator. I would take it to mean that gold is solidly in the distribution phase, as I said some time ago.
ReplyDeleteMike -- As to your last sentence, see the post here from yesterday: "How the Political Mind Works". That is probably the answer.
ReplyDelete