[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Putin claims new 'invincible' missile can pierce US defenses

Report: Special Counsel Robert Mueller Focusing on Trump Obstruction, Not Collusion

Suozzi (D-NY) Suggests Using the ‘Second Amendment’ on Trump

Did Putin Order the Salisbury Hit?

US Boy Scouts revoke badges from Down's syndrome boy

China To U.S.: ‘Correct The Mistake’ Of Passing Taiwan Travel Act Or Face ‘Military Pressure’

Microsoft tries out new must-use-Edge ploy in Windows 10 preview

Navy Seal Says He Killed Bin Laden — and the Photos of His Dead Body Are Fake

Self-Driving Uber Car Kills Pedestrian In Arizona: Bigger Government Guaranteed

Trump’s election consultants filmed saying they use bribes and sex workers to entrap politicians

Hypocrisy: Why Is It OK When the US Meddles in Elections but Not When Russia Does It?

Women Fined $100,000, Face Potential Jail Time, Just for Braiding Hair

Pelosi Fights Off Democrats Who See Her Leadership as ‘Toxic’ to Party’s Image

Hillary Clinton’s India Trip Cost Taxpayers More than $22k

China's premier hopes trade war can be averted, pledges more open economy

How do civil wars happen?

Sad Truth

Robert Mueller Has Been Botching Investigations Since The Anthrax Attacks

China's space lab to crash soon

This Teen Built A Prosthetic Arm Using Lego

Libertysflames question of the week...Can you think of anything worse then.......

Suozzi Suggests Using the ‘Second Amendment’ on Trump

Self-Driving Uber Car Kills Arizona Pedestrian

JUDAS PRIEST Scores Highest-Charting Album Ever In U.S. With 'Firepower'

Restaurant Patrons Fight Back Against Cop As He Savagely Beats Autistic 12-year-old Girl “UFC-Style”

Deciding To Die (Gun Confiscation)

Muslim pedophile grandfather sold children for sex in his ‘rape house’ where perverts queued down the stairs to abuse little girls

Police officer busted for reverse drunken driving

New Yorker Magazine Under Fire for Body-Shaming Trump

A frustrated Trump lashes out at special counsel Mueller

Cars That Parent Us

Edward Snowden: Facebook Is A Surveillance Company Rebranded As "Social Media"

The conformity of walking out

Hungary PM: Europe Under Migrant Invasion – Those Who Don’t Block it at Their Borders Will be Lost

History of Gun Violence

Going to the Gun Range With Family Got These Students Suspended From School

The End of the world as we know it

Is The U.S. Economy Really Growing? (No)

It Begins: Florida Resident’s Firearms, Ammunition Confiscated Under Gun Control Law

The College of the Holy Cross 'Crusaders' mascot succumbs to 'Islamophobia' concerns

CEO Susan Wojcicki to 'Fight Conspiracies' on YouTube by Adding Wikipedia Boxes to Videos

Sign Referencing Civil War Hero Is Sexual Harassment, Says Massachusetts Lawmaker

It's all Eve's fault

Arizona's Flake, in New Hampshire, mulls 2020 challenge to Trump

Donald Trump signs Taiwan Travel Act despite warning from mainland China

McCabe Fired

Sunrise over the Swamp

Chicago students trash Walmart during walkout over gun violence

Mix up lands senior citizen behind bars for not mowing lawn

Zakharova Tells Who Is Really Behind The Salisbury Anti-Russian Campaign

Status: Not Logged In; Sign In

See other Business Articles

Title: A Million Dollars a Minute
Source: Information Clearing House
URL Source: [None]
Published: Feb 15, 2018
Author: Andrew P. Napolitano
Post Date: 2018-02-15 23:12:18 by U don't know me
Keywords: None
Views: 39

A Million Dollars a Minute

By Andrew P. Napolitano

February 15, 2018 "Information Clearing House" - Imagine you open the faucet of your kitchen sink expecting water and instead out comes cash. Now imagine that it comes out at the rate of $1 million a minute. You call your plumber, who thinks you’re crazy. To get you off the phone, he opines that it is your sink and therefore must be your money. So you spend it wildly. Then you realize that the money wasn’t yours and you owe it back.

Now imagine that this happens every minute of every day for the next three years. At the end of the three years, you owe back more than $6 trillion. So you borrow $6 trillion to pay back the $6 trillion you owe.

Is this unending spigot of cash reality or fantasy?

I am not speaking of Amazon or Google or Exxon Mobil or Apple. They deliver products that appeal to consumers and investors. They deal in copious amounts of money because they sell what hundreds of millions of people want to purchase and they do it so efficiently that hundreds of thousands want to invest in them. If they fail to persuade consumers to purchase their products and investors to purchase their financial instruments, they will go out of business.

My analogy about all that cash in your kitchen sink that just keeps coming is not about voluntary commercial transactions, which you are free to accept or reject. It is about the government’s spending what it doesn’t have, the consequences of which you are not free to reject.

Government produces no products that consumers are willing to pay for voluntarily, and it doesn’t sell shares of stock in its assets. It doesn’t generate wealth; it seizes it. And when it can no longer politically get away with seizing, it borrows. It borrows a great deal of money — money that it rolls over, by borrowing trillions to pay back trillions to prior lenders, and thus its debt never goes away.

Last week, after eight years of publicly complaining that then-President Barack Obama was borrowing more than $1 trillion a year to fund the government — borrowing that the Republicans silently consented to — congressional Republicans, now in control of Congress and with a friend in the Oval Office, voted to spend and hence borrow between $5 trillion and $6 trillion more than tax revenue will produce in the next three years; that’s a few trillion more than they complained about in the Obama years.

That’s borrowing $1 million a minute.

Obviously, no business or household or bank can survive very long by borrowing from Peter to pay Paul. Yet the federal government, no matter which party controls Congress or the presidency, engages in staggering borrowing — borrowing that will cripple future generations by forcing them to pay for goods and services that were consumed before they were born.

The government has often borrowed to meet critical emergency needs, typically during wartime. Indeed, the country was born in debt when Alexander Hamilton, the father of big government, offered the idea that the new federal government created by the Constitution could purchase the fidelity of the states by assuming their Revolutionary War debts.

But those debts were paid back using inflation, gold and tax dollars, and the country enjoyed sporadic periods of nearly debt-free government. Then three unhappy events coincided about 100 years ago: Woodrow Wilson — the father of modern-day big government — was elected president, and he brought us into the useless battle over national borders among old European royalty called the Great War, and he financed American participation in that first world war using the new printing presses owned by the new Federal Reserve System.

The $30 billion President Wilson borrowed from the Federal Reserve and others has been rolled over and over and has never been repaid. The federal government still owes the $30 billion principal, and for that it has paid more than $15 billion in interest. Who in his right mind would pay 50 percent interest on a 100-year-old debt? Only the government.

Wilson’s $30 billion debt 100 years ago has ballooned to $20.6 trillion today. At the end of President Donald Trump’s present term — because of the Republican budget signed into law last week — the government’s debt will be about $27 trillion.

That amount is a debt bomb waiting to explode. Here’s why. Every year, the federal government collects about $2.5 trillion in revenue and spends it all. It borrows another $1.5 trillion to $2 trillion and spends it all. To avoid paying back any of the $27 trillion it will owe, the federal government will need to spend about $1 trillion a year in interest payments.

That $1 trillion is 40 percent of the revenue collected by the federal government; that’s 40 cents on every dollar in tax revenue going to interest on old debts — interest payments that are legally unavoidable by taxpayers and voters.

Will the taxpaying public tolerate this much longer? What would happen if taxpayers stopped paying taxes because 40 percent of what they’ve been paying has produced nothing for them? Would investors stop lending money to the government because of fear that the government could not pay them back? The Constitution requires the government to pay its debts. Would the government’s creditors acquire control of the government’s fiscal policy in order to pay themselves back? The government’s biggest creditor is one of its biggest menaces — the government of China.

Borrowing money at $1 million a minute is digging a hole out of which we will never peacefully climb. President Obama’s and President Trump’s own military and intelligence chiefs have argued that the national debt — not the Russians or the Islamic State group or the North Koreans — is the greatest threat to freedom and security that we face today.

Why are Congress and President Trump not listening?

Post Comment   Private Reply   Ignore Thread  

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com