Professional Looters Agree To Reduce Looting By 111 Billion Next Year

The violent usurpers you call the federal congress have decided to reduce the amount of resources they steal from the American public by a paltry 111 billion dollars next year. The 2011 annual budget for the United States is 3.82 trillion in expenditures. The annual amount of money stolen from the public through taxes is 2.17 trillion. This leaves a budget deficit of 1.65 trillion. 111 billion amounts to around a 3% cut in spending.

KC InfoZine reports:

H.R. 2560, the Cut, Cap and Balance Act would cut federal spending by $111 billion by next year, cap spending at 19.9 percent of gross domestic product by 2021 and require a balanced budget amendment. Spending has been below that mark, but recently has been above 20 percent of GDP.

The House debated the bill most of the day and voted after 8 p.m. Tuesday, passing it on a vote of 234 to 190.

So in other words, congress feels that with a budget deficit of around 1.5 trillion, a spending cut of 111 billion is good enough. Of course, the only thing that matters is if our creditors think such cuts are “enough” to keep us solvent. For some reason I highly doubt this is the case. I also highly doubt that when 2012 finally rolls around that they will actually manage to cut spending by the 111 billion promised.

They can’t do it. Asking congress to cut spending is like asking a drunk crack addict to stop drinking and smoking crack. The odds of winning the lotto are better.

Of course, talking about deficit reductions downplays the total spending that is going on. Politicians like to talk about deficits as if having no deficit means the country is perfectly fine. Consider that if a criminal government confiscates 40% of the public’s income and then spends all of that money, the country would have a budget deficit of zero, but their economy would still be a complete basket case. This is precisely the situation we have today.

The government must stop spending in faaaaaaaaaaar greater amounts than 111 billion in order for an economic recovery to take place. If the congress does not cut spending by trillions, the tax revenues they keep trying to collect will decline over time, thereby making the deficits even wider in the future.

Resources must be freed up so that the private sector can put them to productive use. When the government builds an aircraft carrier, all the steel that it used to produce that carrier is taken off the market. This means the steel that remains for the private sector to use will cost far more because there will be less of it available.

Government spending is just as economically destructive as taxation is. Spending removes real resources from the private sector economy and taxation removes the monetary capital that those resources represent. Only when resources are left in private hands, and put to use making things that people want to voluntarily purchase on their own, can society be made wealthier.

Zero Hedge recently ran an article entitled The Head Of The World’s Biggest Hedge Fund Sees “Economic Collapse” Due To Money Printing By Early 2013, in which Bridgewater manager Ray Dalio openly states:

Dalio believes that future inevitable money printing will “lead to a collapse in currencies and bond markets.” Dalio is even kind enough to give a time frame. “I think late 2012 or early 2013 is going to be another very difficult period.“

One to two years out.

I have been saying that a collapse of the currency would happen around the 2012 time frame for several years now. I completely agree with Dalio’s assessment of the situation. The paltry cuts by congress are no where near enough to stop our creditors from running.

China has already dumped 97% of its US Treasury Bills. This dumping of US bonds by foreign governments will accelerate as they come to realize that the criminal US congress has no intentions of actually paying its debt back with legitimate money. China’s total holdings of US debt have not changed from their December 2010 levels. I am certain that China will not take on more US debt at the levels necessary for the US to continue spending at current levels.

Looking across the board we can see that the total amount of Treasury Bills held by foreign governments has declined from 466 billion in May of 2010 to 422 billion in May of 2011. Total bond holdings by foreign governments have gone from 2224 billion to 2817 billion during the same period, an increase of only 593 billion, which is a trillion short of covering the deficit shortfall.

If all of the US’s creditors were to stop buying the US’s debt, the Federal Reserve would be forced to print all of the money necessary to keep the government operating at its current levels of spending. This would lead to nearly instantaneous destruction of the dollar’s value.

It is worth noting that the monetary base has jumped by nearly 800 billion during the same period of time. Clearly we can see the Fed is already engaged in mass money printing to keep the criminal government operating. People need to realize that at this point an increase in the debt ceiling no longer represents an increase in the amount of money we owe other nations, but the amount of money we will authorize the Federal Reserve to print.

Buy Bitcoins, gold, silver, guns, ammunition, bulk food, water purifiers, medical gear, etc.. etc.. etc.. and prepare for the final implosion of the greatest ponzi scheme ever created in the history of mankind.

The US dollar.

Dang I was with you the whole time until the very end when you mentioned # coins... Those are not real money either... just an electronic currency which obviously has problems of its own... Hasnt it already been found a fraud... easily hackable?

Silver/gold/food/water will be the real currency once the dollar crashes... atleast in my opinion



Lol this vid is funny

reply to post by morder1


Mercatus Senior Research Fellow Jerry Brito disagrees with you.

Brito is an Austrian economist, which means he deals in reality.



Of course, Brito isn't the only economist that sees value in the coins.

themonetaryfuture.blogspot.com...

If you would like to see an extensive collection of articles on the economics of Bitcoin, look here:

www.libertariannews.org...

I like the bit coin idea. It is truly revolutionary. I never invested because I heard they got hacked a while back. I feel like the security, and long term legality of such a plan could be problematic.

The dollar is done. I am waiting for a silver correction to dive back in. I don't know it has made quite a move today. It went down all the way to 38.50 before roaring back to nearly 39.80. I just have a gut feeling that it needs to correct some. 34 to nearly 41 in five or six sessions is pretty considerable.

Originally posted by stephinrazin
I like the bit coin idea. It is truly revolutionary. I never invested because I heard they got hacked a while back. I feel like the security, and long term legality of such a plan could be problematic.

The dollar is done. I am waiting for a silver correction to dive back in. I don't know it has made quite a move today. It went down all the way to 38.50 before roaring back to nearly 39.80. I just have a gut feeling that it needs to correct some. 34 to nearly 41 in five or six sessions is pretty considerable.

Whatever corrections silver may undergo will be inconsequential.

Bitcoin security has never been breached. One of the exchanges that allows the sale of dollars for bitcoins was hacked and a small amount of accounts lost some coins in the attack.

The Bitcoin network itself uses NSA approved double 256 bit SHA 2 encryption. This encryption algo has never had a collision and has never been cracked.

Ever.

It probably never will be unless physicists figure out how to bend the laws of physics and create a real quantum computer. And no, the D-wave system does not count. It is not a "real" quantum computer of the type necessary to break 256 bit SHA 2 crypto.

reply to post by mnemeth1


Bitcoins can be outlawed, and people who place an investment in this "currency" stand a chance at loosing everything. Physical coins, like silver or gold will be far safer. Not to mention in the event of total economic collapse you'll be wishing you can actually hold those bitcoins, and curse yourself for not buying silver instead.

This is not surprising.

This isn't just going to stop.

Deal with it 'Merica....now go watch tv

Originally posted by mnemeth1
The violent usurpers you call the federal congress have decided to reduce the amount of resources they steal from the American public by a paltry 111 billion dollars next year. The 2011 annual budget for the United States is 3.82 trillion in expenditures. The annual amount of money stolen from the public through taxes is 2.17 trillion. This leaves a budget deficit of 1.65 trillion. 111 billion amounts to around a 3% cut in spending.

This year it is said that we have a debt increase of 1.6 trillion dollars, but that’s not true. If you count what we borrowed from the pension funds, the Social Security and highway funds, it’s 2 trillion dollars. But if you include the increase in the entitlement obligation, it’s 5 trillion dollars. So this is a huge, huge problem.

www.ronpaul.com...

Therfore, even if these cuts are real (ie they're not an illusory decrease in projected future spending) they actually amount to less than 2%.

Just in these last 3 years in dealing with this crisis, the dollar has been devalued 50% against gold, and gold, of course, is the best measurement of the value of a currency and it’s been that way for thousands of years and it cannot be denied because it’s economic law. So we are defaulting, and when the American people go out and start buying goods and services, like they are now, they’re recognizing it costs a lot of money. So right now, we’re in the early stages of rampant inflation, which means we’re going to be hit with higher prices and higher interest rates. That is going to be a tax. So I see the only solution, and that is to cut spending.

www.ronpaul.com...

It's business as usual in Washington despite their thinly veiled attempts to appear like they are doing the right thing.

The founders had a pretty strong suggestion, they wrote a constitution that said the government should be very limited, and the government should be protecting our liberties and providing national defense and a sound currency. We don’t do any of that. We’ve embarked on a course that was destined to end badly and this is where we are today.

www.ronpaul.com...

Ron Paul makes a really good point that I'm yet to hear anyone discuss:

But if you really wanted to live within the technicalities of law, there’s a very simple thing you could do. We owe the Federal Reserve 1.6 trillion dollars. Well, that’s not a real debt, they bought those treasury bills with money out of thin air. We could just write that off or quit paying the interest, tide ourselves over and get down to serious business to cut back and live within our means. And that would be a solution.

I LOVE it!!!



Sure bound to piss the corporatists, bought and paid for politicians, and the banksters off

reply to post by robyn


Man, he sure can sum it up nicely.

I'm sure the bankers will have a patsy kill Mr Paul if he gets too close to commander in chief tho.

Just like they killed JFK & Lincoln.

Hopefully Uncle Ron has some guardians.