- Without interest burden its merely investment and Economic tonic -
" Deficits don't matter"
Dick Cheney, V.P.
"The lesson we should have learned is that deficits have little or no short-term economic impacts,"
William A. Niskanen,
Reagan's Council of Economic Advisers.
"Voters and politicians became anesthetized to big deficits... Reagan was running these big deficits, and liberals argued it was going to be Armageddon. We were going to ruin the economy. Interest rates were going to go through the roof. And none of these things happened."
Stephen Moore, Reagan Budget Office
Dick Cheney and the Reagan advisers were only half right. Deficits do not matter if there is no interest put upon our money and credit creation to run our society, government, and economy. The real burden is the interest we are currently forced to pay for every dollar created in the form of interest bearing bonds. Eliminate the debt-money interest penalty to private bankers and you have investment and capital injections increasing economic vitality.
The problem today is not spending more than you take in, the problem is a nation having to pay private interest for the money and credit they need and require. With treasury direct financing of our nation's needs and operations there is no interest to pay. The money created, and authorized by a representative body re-elected every two years, goes to pay for services, capital improvements, infrastructure, energy and technological investments, health care and all the needs of the nation as democratically determined. As always, the problem is to make sure we get value for our money and it is not wasted in "wars of choice" and obscene medical industry corruption.
Wherever this constitutional, interest-free, treasury-created money goes it winds up in the pockets of those providing products and services. It becomes income that is quickly recycled throughout the economy resulting in a far swifter velocity of money than within the debt-money paradigm - wherein so much money is stagnant, parasitic, and must become payment for interest.
With an "independent" private central bank we have little or no control over the volume of money and credit or its cost and uses to which it is put. A Congress without its "purse power" is simply a slave to the "Fed" money lenders. With a public central bank, however, our Treasury can provide funds needed to grow and preserve a stable economy without the chaos, instability, and predation of the private debt-money system and its Wall Street owners.
Without interest on a national debt we don't have a deficit problem, we only have a currency problem to the extent other private money-credit systems attack and refuse to accept our non-debt money creation. But when our interest free currency is made legal tender for all debts and the economy is invigorated by this system, then relative currency value is likely not a problem, and the ever-growing interest tab has been removed from budget calculations. Further, when trade is not forced and it is made truly free for tariff adjustments deemed appropriate and democratically-determined, then trade imbalances will no longer sink the currency and tax the consumer.
So freedom for interest-free money creation and trade relations remove most of the problems we find in the current oligarchic, forced-trade, economy. When any one nation escapes this stranglehold over money and credit creation then this monetary democracy contagion will spread until one day the era of private central banks will finally be history... as our founders intended.
The entire top-down, fascist, race-to-the-bottom, globalization process began with "free trade" disrupting balanced economies. As a result, low-interest debt-money infusions were necessary to cover up the slow-motion disaster in First World nations screwed by the ruling elites "harmonization" dogma. The entire world is now sick of this totalitarian capitalist prison perversely rewarding undemocratic societies and so the move is now strong and growing to replace our privatized debt-money systems and forced trade regimes.
The task today is for the people to prevail upon their elected representatives to give them the power to override the regimes of the unelected via initiatives, referendums, and constitutional amendments. This will let the politicians off the hook for reform, which they will willingly give up as economic and currency chaos continue within the debt-money prison. Unable to muster the will to generate true reform, and escape their corporate money machine and re-lection fixation, at some point they will willingly hand the people a basket of chaos. At this point it will be the people versus the ruling elite's last stand with its desperation and diversions to defeat real monetary reform.