Debt may be a long term problem, but it certainly isn't an emergency

[westerebus]

4. It depends on which debt.

Bills and bonds sold to foreign governments, their banks and persons are debts we don't owe to ourselves, but that has nothing to do with taxes.

All the MBS paper owned by the FED and held as collateral provided it is US Government MBS paper could be destroyed and we still would not have to raise taxes.

All this has to do with sovereign authority. The ability to pass laws, make treaties, coin money, stand up an army, impose tarriffs and tax the citizens are what makes the US Government the sovereign authority of our sovereign nation. All that Constitution Bill of Rights stuff just codifies what we are, a nation of laws.

The authority to tax is necessary to keep people vested. In a democracy you want people to pay something toward the bill. We pay all our bills with dollars. You will not be getting your social security check in yen. If a country has yen to spend they must convert the yen into dollars if they want to buy part of the nation's debt. They will be paid back with interest in dollars. Like the game Monolopy, the bank has all the money and its the only money the bank will take. You get money up front interest free when you start the game. Works the same with the a sovereign nation. It gets complicated when you don't own your own printing press which is the case of the Euro Zone.

Taxes actually removes the amount of money from circulation. Increasing the debt levels increases the amount of money in circulation. In a deflationary depression the government increases its debt level to keep money circulating. If you don't want the economy to inflate to fast, you hold large amounts of reserves which is what the FED has done. In order to keep money available it keeps its rates low and this lessens the interest to be paid on the debt that was issused by Congress. We can actually borrow as much as we want at low rates to fund government spending. Neither has anything to do with bailing out banks or how you would structure the laws of who and what gets taxed.

I know it's confusing.

It all has to do with sovereign money. We use dollars. Pure fiat. Backed by the full faith of the peoples of the United States. Part of the confusion starts with the concept of taxation. We don't need to tax ourselves to pay for anything we want our government to do. Our government has the ability to print as much money as we require to meet our needs.

The mechanism we use is issusing debt and printing money. Ask the FED chairman where does all the money come from? Thin air is what he will tell you. There is nothing behind the dollar but the full faith of the peoples of the United States.

So what's all the shouting about the National Debt? Politics and wealth. Those with wealth want to dictate politics.

They know the people can change the who and the what that gets taxed. They know as long as they keep us divided and fighting amongst ourselves that's not going to happen. They know we can revise how we print money, how we issuse money, how we regulate money and all that effects how much debt or how little debt we will assume. They know the last thing they want is for people to understand how money works. There is a reason they don't pay taxes. They know they don't have to in the current system. As soon as people talk about changing the system what do you hear? Socialism will destroy the American peoples!!
Which is pure bullshit. They have socialism and it works for them because they have the money, the banks, and the politicians.

The reason governments have the power to tax is to keep from being corrupted by those with too much wealth. We are way down the road on that one. Once the wealthy took up politics and saw the profits that were to be made, well it's all history now.
That's why they called FDR a traitor to his class. That's why they killed JFK. It's why LBJ refused a second term.

The system is absolutly corrupt.

And the crazy is on the way.