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Posts Tagged ‘debt ceiling’

Fiscal cliffThe mass media misled Americans, and the world, about the phony U.S. debt fiscal cliff non-crisis in at least two big ways:

1) There was never any threat of defaulting on the U.S. debt as a result of not raising the debt limit, as federal revenues still exceed interest and principal payments on the federal debt. The consequence would be that the federal government would have to return more closely to its constitutional boundaries, in cutting back the >40% of every dollar spent that it is currently financing by borrowing.

2) The U.S. doesn’t depend on borrowing from any country or individuals — the Federal Reserve could buy up as many Treasury Bonds as it wants, and return most of the money back to the U.S. Treasury, as it is required to do by law, after paying its expenses, and shareholders. This is what the government’s been relying on since 2008 anyway. This will result in the eventual destruction of the USD, as this borrowing isn’t subject to the same kind of scrutiny by big lending countries like China and Japan.

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WiredFrom the January 10, 2013 Wired.com article, Meet the Genius Behind the Trillion-Dollar Coin and the Plot to Breach the Debt Ceiling:

Ever the lawyer, Beowulf dived into Title 31 of the U.S. Code: “Money and Finance.” That Journal article was still rattling around in his head. He was also inspired by ideas from attorney-turned-finance-author Ellen Brown, who in her 2008 book Web of Debt quoted a 1980s-era director of Treasury’s Bureau of Engraving and Printing as saying the government could solve its debt problems by printing large coins. He wasn’t talking about circumventing the debt ceiling, which hadn’t yet become a political football, but he may have been on to something.

Wherein they linked to my 2011 article, Ellen Brown on a simple and constitutional way to pay off the United States national debt.

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