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Posts Tagged ‘debt’

During the 2015 Canadian federal election campaign, Liberal leader Justin Trudeau, now Prime Minister, promised to borrow money (at interest) to pay for $60 billion in new infrastructure investments, as opposed to the NDP’s plan to balance the budget in their first year.

It was, and remains, a false frame of having to stay in a deficit and grow the debt by borrowing at interest for infrastructure investments when the government of Canada, all its provinces, and its municipalities, have the statutory authorization under the Bank of Canada Act to borrow money, effectively, or, in actuality, interest-free.

For instance, money can be borrowed effectively interest-free when the Bank of Canada issues bonds that are held by the government, and when it buys its own bonds, as the government of Canada is the sole shareholder of the bank, and all profits, after expenses, will go back to the government.

But even better, the federal government can borrow money, interest-free, by requesting interest-free money, to borrow for infrastructure investments today.

So, despite Trudeau seemingly one-upping the NDP in saying that he would invest in critical infrastructure by borrowing today, as opposed to putting off such investments in favour of immediately balancing the budget, he bought into the typical false frame that we have to borrow the money at interest as opposed to borrowing it interest-free.

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I was a guest on Sarah Westall’s Business Game Changers show.

From the show description:

Business Game Changers – Is it Time for a new Philosophy regarding Currencies and Economics?

With the problems the world is facing over destructive “currency wars” and the continual debt that governments are racking up, is it time for a new way of doing things? My guest, Jason Erb, thinks it is. He explains his philosophy regarding debt, currencies, and how governments, bankers, and economists have led us to a ridiculous state of using our precious tax resources to pay foreign bank owners interest instead of repairing our infrastructure or giving tax money back to the people so they can buy food, medicine, or other necessities.”

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Byron DaleMonetary historian and reformer Byron Dale is scheduled to be my guest for the full two hours of Exposing Faux Capitalism, on December 22, 2013, from 8 to 10 PM EST.

I’m looking forward to speaking with him about his monetary reform efforts in Minnesota, to issue debt-free money in pursuit of legitimate public works projects at the state level, instead of state residents having to rely on bribes of their own money from the federal government.

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United States NotesAccording to the December 2012 report by the U.S. Treasury Dept., out of the $450 million Greenbacks issued during the American Civil War, there is an estimated $239 million still outstanding.

In 2013 dollars, this would be at least $10 billion, according to this inflation calculator. While not significant today, it’s significant that such a huge percentage of the Greenbacks are still in circulation, given that they were ordered to be taken out of circulation in 1971, so there have been many that are being privately circulated or collected.

While there were $500 million in interest-bearing bonds that were issued as backing for them, the money supply grew by a total of $950 million, and the interest-free Greenbacks provided significant funding for the Civil War, when the total debt was $2.7 billion by 1865, and no interest was due, nor will ever be due, on the $450 million issued, and nothing is stopping the U.S. government from returning to directly-issued interest-free currency, other than lack of political will.

As for the validity of the American Civil War, I have publicly stated on my radio program and in a recent public presentation that the States had the right to secede from the Union, and that President Lincoln and the Union were in the wrong. The effectiveness of the Greenbacks, and of any interest-free currency, is something that can be independently judged.

For more on United States Notes, see my articles:

1) Gary North gives the false impression that interest-free United States Notes are no longer valid

2) Gary North deliberately omits the fact that United States Notes are interest-free

3) Michael Badnarik on issuing interest-free fiat money like Lincoln did: “That’d be a step in the right direction”

4) Don’t just blame Lincoln for a national legal tender law — Washington signed one, too

5) The Federal Reserve lies about United States Notes (Lincoln Greenbacks)

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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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Quarterly Journal of Austrian EconomicsAt a local libertarian gathering this past week, the topic of economics came up, and I said to the surprise of everyone there, “I don’t agree with Austrian economics.”

I started getting into the first reason I list here, and for completeness, here are ten top reasons:

1) I don’t think government has to borrow money into circulation as a debt with interest in order to pay for carrying out its enumerated powers.

2) I see it putting too much focus and blame on government, instead of force and fraud carried out by any individuals or group of individuals, including corporations.

3) The obsession with inflation. Inflation is absolutely necessary under a debt and interest-based monetary system in order to pay the aggregate debt.

4) Making frequent reference to a so-called “gold standard,” as opposed to calling it a free market system of freely competing currencies.

5) Its obsession with gold, and to a lesser extent, silver, as “real money,” “sound money,” as I thoroughly challenged in my article, The gold double standard.

6) Its elite origins, as illustrated in my July 22, 2012 interview with monetary reformer, Anthony Migchels.

7) The willful blindness toward, or deliberate omission of, successful government-issued currencies, and facts concerning how some such as the Continental Dollar and United States Notes were deliberately sabotaged by banksters and their agents, as I mention here.

8) Inconsistencies among some prominent Austrian economists, in holding that corporations are entitled to private property rights protections, despite being creatures of government, as I wrote about here.

9) Downplaying the role of interest. When a debt is created with interest owed and no money created to pay the interest, more money has to be borrowed, or one’s production has to be pledged in order to pay the debt, or one’s property pledged as a security.

10) Not taking a positive position on local, interest-free currencies as a great market alternative, all on the basis that the so-called “free market” will decide everything, as opposed to reasoning independently about such a proposal.

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Alex Jones claims to be at “the tip of the spear” in exposing the New World Order, and the impression is given that the power structure is fearful of his operation.

See this video, and ask yourself: Are the debt-money masters scared of him, or laughing their asses off?

Credit goes to George Whitehurst-Berry, who used a similar title for another video of Alex Jones.

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