When we as a nation need more money to pay the bills where do we get the money? Does anyone benefit from this endless borrowing? If so, who do you suppose that is?
Before I go any further let me confirm what you probably already know, “debt is the total amount of money that a country (or company) owes. Deficit is the amount that a country (or company) loses each year.”
No doubt you’ve heard the advice, “follow the money.” The result shouldn’t surprise you.
Carrying a national debt is nothing new. The national debt has remained relatively stable, with one or two exceptions, for almost the entire time the US has been a sovereign entity. Holding this debt and the guarantee of payment with interest is and has been an entitlement for those people, banks, funds and markets with the means to secure it. See, now that—is an entitlement. Getting from here to there, however, is an exercise in the esoteric, the arcane.
The thing is this arcane “thing” that keeps us in this perpetual state of borrowing is being done out in the open—under our noses, as it were.
It’s the Houdini mantra, “what the eyes see and the ears hear, the mind believes.” The illusion created results from distraction. The one-percent owning the media and thus the message are free to distract away.
“Except for about a year during 1835–1836, the United States has continuously held a public debt since the US Constitution legally went into effect on 4 March 1789.” Why do you suppose that is? Does it benefit someone? Anyone?
The one-percent wealthiest US citizens whine when there is even just talk of letting the Bush tax cuts lapse thereby raising the one-percent’s tax rate from 35 to 39% . And the one-percent are those who own almost everything and are most able to pay taxes.
So if the national debt and deficit were such a big deal don’t you suppose the one-percenters would be up in arms? Debt certainly didn’t bother “w.” Why should it? Debt and the deficits that add to it used advantageously carries the day. Right now, the deficit and the debt are being used by the one-percent as blunt instruments with which to pummel the much maligned “47 percent” of the economically disenfranchised portion of the US population. That’s being done by cutting sorely needed benefits to the poorest and least capable among us as well as to public sector employees while simultaneously making popular the idea that cutting taxes on the one-percent is not an entitlement but a job creator. If that were so, the past four decades would have been banner years for employment. They weren’t.
Since at least 2008, some say 2007, roughly 28 million US citizens have been unemployed or underemployed. That means there is less tax revenue coming into the national coffers. That in turn means those unemployed and underemployed US citizens aren’t buying stuff. As a result almost all businesses suffer declining sales and that means they pay less taxes. It is the quintessential vicious cycle.
Our collapsed housing market lowers property values, and that drops the property taxes on which local governments depend. The nation’s population has lost seven trillion dollars in home value in the past four years. One in three homeowners is “underwater.”
Millions of homeowners have lost their homes to foreclosure over the past four plus years. These foreclosures resulted from egregious real estate swindles going on throughout the Clinton and Bush Administrations. What “we the people” didn’t know was that underpinning that corruption was corruption on a grander, more global scale. The post-repeal of the Glass-Steagall Act in 1999 would exponentially grow deficit and debt, effectively transferring by some accounts $24.7 trillion dollars worth of wealth to the one-percent and impoverishment to just about everyone else.
The game (the economy) is rigged, racist, egregious. It has been so since before the “revolution.” That’s where the “distraction” comes into the process. We the people are kept busy with side issues that have no place in a “secular” society. Others are kept busy with scripted “reality” shows. Meanwhile the one-percent are making off like, well—bandits. If there were no debt those who profit from it would create it.
Think: Standard Chartered, Barclays of London and LIBOR, JPMorgan Chase, Citigroup, HSBC, AIG, Fannie Mae, Freddy Mac, Countrywide, WAMU,Wells Fargo and on and on and on ….
From Texas Red: a cratered landscape of prisons, deplorable apartheid public education, lack of healthcare and politicians and majority population intent on keeping it that way…