A budget deficit means that government has been unable to recover all the money it had spent, and the missing amount remains in the possession of the rich
DENVER, Sept. 23, 2010 — The following is the second of a four-part statement by J. Moromisato.
2. Who Gets The Money Government Overspends? Money Myths are at the Root of America's Decline (Part 2)
We tolerate a growing national debt because we are afraid that if government prints the money it needs we would suffer accelerated inflation.
The fear of inflation is part of our money myths. Economists have taught us, over and over, to fear inflation. But, for some reason they never mention that nowadays inflation is absolutely controllable by the Fed, nor do they mention the effects of recessions, which are truly devastating, and cannot be fixed by the Fed.
Another detail economists omit is that government spends most of its income in producing the public goods and services we all demand. Where does all that money go? Well, it is spent into the economy; it goes to all of us, and as we spend our share of that money, it all ends up into the bank accounts of the wealthy.
When there is a budget deficit, it means that government has been unable to recover all the money it had spent, and the missing amount remains in the possession of the rich.
Every year, the rich underpay taxes in the amount of several hundred billion dollars. The outstanding national debt, over $10 trillion, is what the wealthy classes have underpaid in taxes through the years. That they dare to agitate for lower taxes, sitting on such extraordinary wealth, is a testament not only to their insatiable greed, but also to our utter ignorance and gullibility.
You would think that we could solve the fiscal deficit by simply increasing the taxes on the rich, but they are neither dummies nor sitting ducks; they have rigged the financial system in a way that allows them control over the flow of credit into the economy. As described in Part 1, the savings of the rich are necessary to balance the flow of credit without which the economy would flounder. So, they must really think they have us!
However, as we now know, the financial system must be completely restructured to make it Constitutional, safe, and socially beneficial. We will see in the last part of this essay how such a new system, which I call "Freed Money," would eliminate the power of the rich from the creation and flow of credit into the economy. [Visit http://www.DenverPlan.com for more details]
(The third part of this essay deals with our large foreign trade deficits.)
Contact: J. Moromisato, (303) 321-0577
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