A blog on politics, economics, culture, philosophy, the media, real estate, pets, love, food and wine. From a Tea Party perspective!
Obama, The Younger
Sunday, January 9, 2011
Repudiate the debt!
Why we should not only not raise the debt ceiling, but should repudiate the debt.
Raising the federal debt ceiling means the federal government can expand and spend more money to do so because it will be leant money it does not have and cannot raise through taxes by borrowing from foreign governments and the Federal Reserve.
Where does the Federal Reserve get money, since it has no power to levy taxes? It prints or digitizes it out of thin air.
The Federal Reserve gets to consider the Treasury bills and other debt instruments it "buys" when it loans to the federal government, essentially loan documents, as assets, and use them as collateral in fractional reserve banking, upon which it then makes further loans.
Part of the reason it gets to consider the debts its borrower (i.e. the government) owes it as an asset that it can use to make more loans to the government is because the debt is really a form of title ownership. The federal government does have title to something that has been pledged by the federal government to the Federal Reserve, in the same way your car or house title is pledged to your lender who makes you a loan.
The thing the federal government has a title to....
the thing it owns....
the thing it is pledging.....
You and your children are slaves the federal government owns. Your future income is pledged to the Federal Reserve for it to make a loan to your owner.