Home > The truth about US debt, budget cuts and fiat currency
The truth about US debt, budget cuts and fiat currencyby Open-Publishing - Thursday 7 July 2011
Republican Bogus Budget BS, er, I mean "Concerns"
Disclaimer: I am not an economist and I nearly failed business math in college.
Claimer: I’m a musician but I’m above average at spotting bullshit. I’m registered as a Democrat - a fact of which I am no longer proud. And I’ve canvased four times for presidential candidates outside the two party system. If I lived in Ohio, however, I would vote for Kucinich. That said, I would probably vote for Ron Paul if I had to pick a candidate in Texas.
Americans funded enormous corporate welfare payouts a few years ago at the behest of a Republican president.
Ironically the preponderance of "fiscal conservatives" made no contemporaneous calls for a balanced budget or deficit reduction.
Obama continued down that path by bailing out the automotive sector. Peculiarly, there were few calls to let the market correct itself (by letting corporations fail) and none of those originated in congress. I heard Peter Schiff and Jim Rogers say it but no other talking heads would go there.
Now, however, with a Republican Congress back in place, there is a renewed interest in bludgeoning useful and necessary social programs to death. There is, as usual, no conversation about making cuts in the biggest fund sponge of all - "Defense" (or more accurately - The Oil-Aggression Bully Budget).
But greater irony yet awaits you dear reader.
Ezra Pound, an unusual (and quite possibly insane), poet got an audience with Italian fascist dictator Mussolini to discuss fiat currency. Pound argued that dollars (or pounds or pesos or whatever) did NOT have to be tied to a real asset like gold. The money was good simply because the government said it was good. And all that the government had to do to "make it so" was accept the money for payment of taxes. Musolooney dismissed Pound as a nutty American dreamer.
Now here’s the ironic part. Pound was RIGHT RIGHT RIGHT! And this is the system in use in the good ’ol USofA today.
Seeing as how the muses include music, alongside Pound’s poetry, I feel perfectly qualified to discuss economic matters with you.
So let’s review: Fiat currency is not just for buying fancy Italian sports cars by the same name. Fiat currency means that the currency is backed by nothing more than the good faith of the issuing government. If a currency has no intrinsic value (it’s not made out of gold or silver), but it’s good for paying taxes, then it’s fiat.
In an interesting twist the US government, as represented by the Republicans, has effectively told wealthy corporations and rich people: "your money is no good here."
In fact US dollars are so worthless that the US government accepted not one single dollar from corporate giant GE (yep, the same one that built the reactors at Fukushima).
Only dollars from hard working Americans are worth collecting and distributing, to the tune of trillions of them, to failing banks, failing insurance corporations, and failing car makers.
To add insult to injury, it’s fifty-five cents of every one of YOUR dollars that has us embroiled in wars in Afganhistan, Iraq, Pakistan, and Libya. And, of course, Dick "the draft dodging hawk" Cheney made sure that the US could start a war anywhere in the world by declaring a borderless "war on terrorism."
And, guess what? The Republicans, ever true to form, want to yank the proverbial rug out from under you. They want to gut Social Security, Medicaid, and Food Stamps. Cuts to the Veteran’s Administration are sure to follow.
They have also, with Obama’s help, maintained their capacity to tap your phone, watch your Internet usage, see what books you check out (advice: don’t check out "Catcher in the Rye" or they might recruit you for MK-ULTRA), look over your medical records, view your bank statements and imprison you (with absolutely no legal recourse on your part). Don’t believe me? Reread the Patriot Act, the Military Commissions act, and a flurry of executive orders).
So what’s it gonna be pilgrim? How much longer will you tolerate this?
Are you going to demand accountability from your "representatives?" (to say nothing of the media) or are you going to stand by as they strip you of your social security retirement check?
Are you going to bury your head in the sand until they come for you? Are you going to let your only representation abroad be in the form of deadly depleted uranium shelling and aggression to steal more oil?
You’ll look good goose-stepping in a brown-shirt or an orange jump suit. That’s stylin’ baby!