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November 19, 2008
Obama Says Aiding Economy Trumps Budget Deficit
By mike montagne
Conveys to Obama how mathematically perfected economy will solve the current crisis immediately, and without cost.
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A Reuters article today, “Obama says aiding economy trumps budget deficit,” also responds to 60 Minutes’ Obama interview, quoting the president-elect to state “we’re going to have to spend money now to stimulate the economy.” In other words, a perpetual effort to save the pretended economy will (in each successive phase) cost us far more, and far more again, than it would to rectify it (which would cost us nothing):
By Jeff Mason
CHICAGO (Reuters) — The United States government should not worry about deficits over the next two years while spending money to jumpstart the ailing economy, President-elect Barack Obama said in a television interview that aired on Sunday.
Obama, a Democrat who takes over from President George W. Bush, a Republican, on January 20, said consensus had emerged between economists in both major U.S. political parties that expensive measures were necessary to avoid a deep recession.
“The consensus is this, that we have to do whatever it takes to get this economy moving again, that we have to — we’re going to have to spend money now to stimulate the economy,” he told the CBS television network’s 60 Minutes news program.
“And (consensus is) that we shouldn’t worry about the deficit next year or even the year after; that short term, the most important thing is that we avoid a deepening recession.”
The “consensus” of which Mr. Obama speaks of course is comprised solely of practitioners of a pseudo-science, which, without conclusive or even qualified argument, and without accountability, itself simply steadfastly supports perpetuation of a process which can only multiply artificial sums of debt all the further, until we succumb to a terminal sum of debt.
Obama’s campaign slogan pledged that he wanted us to believe in his ability to change Washington, he wanted us to believe, under his presidency, in ours.
There is of course no more appropriate or vital area of concern than the people’s right and ability to solve the present monetary issues. Where then will we see the manifestation of this pledge?
I frankly don’t know what would compel the man to pursue real solution. All evidence regarding my attempts to convey solution to the Obama Campaign and Transition team may be obstructed by “economic” insiders, who obviously can stand no challenge to the course they will stay, particularly if real solution is upheld by irrefutable arguments.
There is but one solution nonetheless to inflation, deflation, and inherent, irreversible multiplication of debt by interest. Given that solution either cannot reach our president to be, or that he cannot or will not assimilate it, let’s do the math of his proposed course.
The Gross Domestic Product is supposed to be $1 trillion. The federal government is already piling up a $1 trillion in deficits. So the prospect of “bailing out” a system which can only multiply debt ever further, is to increase the deficits, accumulating yet further debt on the federal side of the ledger. So, at the eleventh hour of the finite lifespan of an “economy” which, for the unearned benefit of a few, can only multiply debt in proportion to the sustaining circulation, we are going to contribute to the rate of multiplication.
Smart move? Absolutely not. What are the ramifications?
The whole reason “credit is drying up” however, is the system of exploitation inherently comprises two simultaneous processes, one of deflation, and one of replenishing the circulation of the deflationary process.
When the replenishing aspect cannot be performed to the equivalent of the deflationary aspect, “credit dries up,” and we go under. How does this happen; and is it even possible to recover from a terminal manifestation of conditions which make it impractical to loan sufficiently to maintain a vital circulation?
First of all, what are these necessarily simultaneous deflationary and replenishing aspects?
A central banking system principally usurps the role of real creditor, to impose a currency in which the central bank issues the debtor’s promise to pay, and charges the debtor and subject system infinitely, for the issuance of those promises. Not only does this not contribute to the integrity of the promises, the arrangement itself guarantees the promises eventually cannot be fulfilled.
The currency of such a system thus is introduced to circulation as a debt subject to interest. With the full obligation of every such “debt” thus being comprised of principal and interest, there is a perpetual deflationary aspect of the circulation in which more than exists in circulation as principal is paid out of circulation in the way of principal and interest. Thus the constant deflationary aspect depletes the circulation of more circulation than exists, and so, because the principal and interest both must exist at some time if the resultant obligations are to be repaid altogether, and because it is not even possible to service the resultant obligations if a vital circulation is not maintained, an equal replenishing aspect must exist, with this being comprised of re-borrowing whatever principal and interest is paid out of the general circulation; and with this re-borrowing thus perpetually increasing the sum of debt so much as periodic interest on the ever greater sum of debt.
Thus the sum of debt increases at an inherently escalating rate, until such a sum exists that even the entire circulation would be dedicated singularly to servicing debt. None then remains to sustain the industry; but as industry has obligatory costs as well, the maximum practical lifespan of every such system falls short of a maximum possible lifespan, in which the whole circulation would be dedicated to servicing debt.
Thus it is in these final stages of the finite lifespan of every such system that the replenishing aspect cannot be performed to the equivalent of the deflationary aspect. Why not? Because, to maintain the circulation to that point in the lifespan, we have borrowed so much that the sum of debt already taxes us to our limits.
Obama and his “consensus” of exploitation are hoping instead that imposing further debt upon you will serve you. But at the brink of failure under already terminal sums of debt, you either rectify the system, or you suffer collapse.
Transforming the present system into mathematically perfected economy™ on the other hand will a) cost us nothing; b) apply interest paid so far against principal (vastly reducing the sum of debt); c) refinance all debt without interest and to a schedule of payment equal to the rate of depreciation/consumption (reducing payments against existent debt approximately 12 fold, and eliminating inflation/deflation); and d) make illimitable funding available to sustain further industry, versus continuing the expatriation and destruction of existing industry.
The only question is rhetorical: whether our true power to rectify Washington still exists.