Posted tagged ‘Private sector’

We Are Reaching The Tipping Point.

February 20, 2013
Teeter Totter

Teeter Totter (Photo credit: lambdachialpha)

Consumption is starting to over take production as these charts show. Government spending is an exchange of confiscated, borrowed, or counterfeited dollars for a good or service that has been produced. These dollars represent certificates of purchase that can be exchanged for anything produced in the market. Legal tender laws decree that these dollars have to be accepted for all debts, public or private. The Fed has a legal monopoly on money production, and the fact that the Fed has counterfeited 3 trillion plus dollars since 2008 means that they have stolen 3 trillion dollars worth of goods and services from the private sector over the last four years. (more…)

Advertisements

Economic Reality Will Prevail, Even If The Debt Ceiling Is Raised.

November 27, 2012
English: Chart of the United States' debt ceil...

English: Chart of the United States’ debt ceiling from 1981 to 2010 in $ trillion. This chart tracks the debt ceiling at the end of each calendar year. Years are color coded by congressional control and presidential terms highlighted. Data source: http://www.treasurydirect.gov (Photo credit: Wikipedia)

The debt ceiling will go up in one form or another. But the economic reality, which we discussed in a previous post What Comes First Production Or Consumption, will eventually make it impossible to climb out of the debt hole we have allowed our politicians to dig us into.

The only way the Government fund’s itself is through the multi-layered process of taking from the production of private individuals in the free market. Taxing, borrowing, and counterfeiting money, are the three ways Government takes production from the private sector. Taxing is the direct taking of what we produce. Borrowing is a Government promise to pay back with interest, what individuals freely give to them in exchange for this promise. The only way this promise can be kept is through (more…)