Authored by William Robert Barber

The time for the financial reckoning of our heretofore wanton fiscal imprudence is coming like a snowball, gaining speed and size as it tumbles: lending rates will inevitably rise initiating a higher than sustainable borrowing cost on the national debt.  This development is as predictable as the rising and setting of the sun. The monetary near-future for the United States, withstanding the Federal Reserve’s inclination for the extenuation of cheap money which mirrors the administration’s purposeful, albeit tenuous, ultimate policy of monetization, the higher cost of money will have its consequence upon the nation’s economy.  

 Approximately 48% of our nation’s debt is held by the public at large, private as well as public traded entities; of that amount a substantial percentage is derived from foreign sources (such as China and Japan), the principle of the remaining balance is in the form of intra-governmental non-marketable securities such as those debt securities deposited in the Social Security Trust Fund. In other words, the majority of the US issued securities is in a non-liquid, non-marketable form. For this reason, the only means to convert the treasury’s debt-securities deposited in the Social Security Trust Fund  into pecuniary form is to print more money. I therefore conclude that the inflationary pressure upon presentation for currency conversion will force the value currently assessed in this trust fund downward.

There are only two reasonable alternatives to relieve this development: Spend less or tax more.  And since government lacks the means to spend less (as evidenced by precedence), therefore government will tax more.

Government CANNOT produce personal nor real value; it is incapable of creating wealth or directly sustaining anything or anyone. Government is a devised creation that has taken on a self-sustaining alter-ego;  government is a perpetual motion machine… It simply requires existence to burn money. 

Government is comprised of thousands of worker bees and because these worker bees are human government is and will forever remain intrinsically corrupt. Since 1789 the representatives of our government, respective of their original intentions, were and presently are susceptible to duplicitous behavior, civil – even criminal – behavior; they are responsible for the causation and dissemination of fraudulent inducement, greed, and a myriad of other such human failings. The powers within government has created an abstruse, Byzantine, befuddling, arcane, and discretionary legislative process that is beyond the comprehension of the layperson and most of the elected. Many of the nation’s laws are ambiguous and possibly even unconstitutional. In actuality government is nothing more or less than a number of varied enigmatic committees. Wonks rule!   

Prompted by the 2008 crisis the omniscient sagacious ones confidently endorsed the Keynesian multiplier to positively affect and ignite the American economy. Bernanke validated (and is complicit in) the endorsement of the Keynesian multiplier. Debt instruments such as mortgage back securities, treasury issued paper, and multiple financial guarantees were and are marketed for purchase. Billions of these purchasers are the very government that issued the paper. Hmm… does the fact that the issuer is the purchaser — not prompt one into considering some intellectual inquiry?

Incentivized by the Federal Reserve’s easy-money policy, a significant cut of corporate operational costs (mostly on lower labor cost) and a tacit surety of understanding between Bernanke and Obama on near zero interest rates did spark a booming secondary market for public-traded shares.

In the meantime the patiently waiting for Keynesian multiplier effect to jump-start employment and GNP growth has worn out any anticipatory joy.  The Obama administration, with some meaningful help from President Bush, has squandered hundreds of millions of taxpayer funds. The only way these funds have been repaid in the past is by decreasing the purchasing value of the dollar.

It is the hope of the Obama administration and the feds that such depreciation of the dollar remains as absent of mind as it currently does. The ploy is to show the shinning object of a booming stock market. Imply explicitly and implicitly that the wealthiest are not paying their fair share. Blame the Republicans for everything negative, and maybe the higher than normal unemployment rate and the increase in gasoline and food cost will go unnoticed long enough to confuse the populous so the Democrats can win the majority in the House of Representatives.

The preceding is my interpretive of the political nonsense presently underway in Washington and a perfect example of the president’s (non)sense as well as means of governing…

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