Share on Google Plus Share on Twitter Share on Facebook 7 Share on LinkedIn Share on PInterest 1 Share on Fark! 1 Share on Reddit 1 Share on StumbleUpon 1 Tell A Friend (11 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   14 comments

OpEdNews Op Eds

Obama Administration Seeks to Appease the Austerity Gods

By (about the author)     Permalink       (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; ; ; ; ; , Add Tags Add to My Group(s)

Must Read 4   Well Said 4   Valuable 4  
View Ratings | Rate It Headlined to H1 4/5/13

Become a Fan
  (61 fans)

United States Note - an example of debt-free money by Wikipedia

The Obama Administration says their budget that reduces Social Security payments with the "Let them eat Cat Food" Chained CPI is "about reducing the deficit in a balanced way that economists say is best for the economy and job creation."  

Well, as the Washington consensus only understands debt-based money it is simply impossible for all of these things to be true at once, though it does make a swell soundbite!  You CANNOT reduce the deficit in an economy that is already teetering on contraction - and IS mostly contracting for the bottom 90% of people - without killing job creation and the economy.  We are seeing it already in the asset markets today, as it anticipates the double growth whammy of sequestration and the payroll tax hike (a tax on working people).

Of course, if the President, or his sycophant advisers, had any knowledge of history and any imagination, they would do something like what another Illinois president did, Lincoln, and create debt-free money out of Treasury directly. Even though the Constitution only gives Congress - and BTW, not a Central Bank - the power to "coin Money" (Art. 1, Sec. 8), there are reasons to believe that the president, under certain unconstitutional conditions like the debt ceiling, could instruct Treasury (a part of the Executive branch) to "coin Money" (capitalization in the original article) too. See here for how.
Almost daily, more mainstream economists are arguing for direct debt-free money creation (we have a fiat money system, after all, so money is not something we can "run out of", as the trillion dollar/year QE of the Fed, good mainly for creating asset bubbles, demonstrates). See Adair Turner, the UK Financial Services Administration chair's recent speech here and this article about British Chancellor George Osborne as well as organizations like the UK's Positive Money group and America's American Monetary Institute, which, until recently, had Rep. Dennis Kucinich to sponsor its plan: HR2990, or even Obama's Transportation Secretary, then Congressman, Ray LaHood's plan to fund highway construction with interest-free United States Notes (the original legal tender under Lincoln): HR1452 (1999).

Until we break free of the debt-free money tyranny of the financial terrorist banking system, we will never pay off our debts, and the interest payments will go to enrich an already obscenely wealthy rent-seeking class at the expense of the productive classes.  As Margaret Thatcher would say, though completely misapplied in her case, TINA - There Is No creating debt-free money.

Scott Baker is a Managing Editor & The Economics Editor at Opednews, and a blogger for Huffington Post, Daily Kos, and Global Economic Intersection.

His anthology of updated Opednews articles was published by Tayen Lane Publishing (December, 2014) and may be found here:

Scott is President of Common Ground-NYC (, a Geoist/Georgist activist group. He has written (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Obama Explains the FEMA Camps

Was Malaysian Flight MH370 Landed Safely in Afghanistan?

Let the Sun Shine on a State Bank in Florida

Batman, The Dark Knight Rises...and Occupy Wall Street Falls

The Least Productive People in the World

The continuing plight of Malaysian Flight MH370 - 2 month update


The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
7 people are discussing this page, with 14 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

No austerity, more spending to get us back on trac... by BFalcon on Friday, Apr 5, 2013 at 11:10:37 AM
In the United States the Fed Chairman Ben Bernanke... by Lance Ciepiela on Friday, Apr 5, 2013 at 2:40:46 PM
Think how they continue to build up the interest c... by Dennis Kaiser on Friday, Apr 5, 2013 at 3:04:31 PM
The Federal Reserve has embarked on what could pro... by Lance Ciepiela on Friday, Apr 5, 2013 at 3:45:49 PM
Actually, if not requested it is actually counterf... by Dennis Kaiser on Friday, Apr 5, 2013 at 6:07:26 PM
Since the largest holders of gold in the world are... by Scott Baker on Friday, Apr 5, 2013 at 3:06:45 PM
Far easier for the president and congress to borro... by Lance Ciepiela on Saturday, Apr 6, 2013 at 9:49:53 AM
He has broken his pledge not to touch Social Secur... by Michael Shaw on Friday, Apr 5, 2013 at 8:04:53 PM
Instead of "Obama Administration Seeks to Appease ... by Daniel Greenfeld on Friday, Apr 5, 2013 at 8:21:28 PM
it may answer some questions for those who condemn... by Michael Shaw on Saturday, Apr 6, 2013 at 1:42:22 AM
This is a good article, and somewhat mirrors the c... by Scott Baker on Saturday, Apr 6, 2013 at 9:47:43 AM
As I recall it was Stockman who started us off wit... by Michael Shaw on Saturday, Apr 6, 2013 at 2:03:48 PM
1) It was decided by SCOTUS a long time ago that h... by Richard Girard on Saturday, Apr 6, 2013 at 1:40:15 PM
The U.S. Note was actually a product of the Lincol... by Scott Baker on Wednesday, Apr 10, 2013 at 4:49:33 AM