Sanchek
06-10-2008, 10:04 AM
http://www.alternet.org/workplace/84019/
If you work for wages (or live on a pension), consider this: if every American said, "No thank you" to Bush's stimulus check and refused to cash them, the value of the dollars in your pocket right now, in terms of their purchasing power would go up by a factor greater than the face value ($600) of the stimulus check. In other words, if you didn't spend these checks, you'd be the richer for it.
The reason being that America does not have a hard-money economy, it's a debt-based fiat currency economy. All the money in circulation in America has been borrowed and then re-lent. So borrowing more money ($168 billion for the stimulus package) and then re-lending it to Americans, as Bush is doing, only increases the debt load and debases the value of the currency outstanding (against a backdrop of stagnant wages and minuscule interest rates for savers).
If an American was planning to spend $40K this year on food, clothing, shelter, health and various other expenses and they were hoping to defray some of that cost thanks to Bush's stimulus check understand that by simply adding another $168 billion of debt (the cost of the stimulus package) on top of America's current multi-trillion debt load will continue the Bush-Paulson-Benanke trend of debasing the purchasing power of your money and, therefore, raise the price of goods and services by more than the $600 'gift' (without a commensurate rise in wages or increase in interest paid on savings).
This is why America's debt problems won't go away. Every dollar spent adds debt and spawns more fiat currency issuance which has the effect of decreasing the purchasing power of the U.S. dollars in your pocket. Bush tries to make up the difference by borrowing even more; borrowing 340 million a day to fund the war and close to 3 billion a day to cover U.S. operating expenses, not to mention Wall Street borrowing over $30 billion a day to keep their Ponzi scheme going. All this borrowing keeps alive the vicious financial spiral trending lower towards permanent currency debasement and possible sovereignty loss.
It's a decent article that takes into account the reality of our monetary system, which most major new outlets refuse to even acknowledge.
If you work for wages (or live on a pension), consider this: if every American said, "No thank you" to Bush's stimulus check and refused to cash them, the value of the dollars in your pocket right now, in terms of their purchasing power would go up by a factor greater than the face value ($600) of the stimulus check. In other words, if you didn't spend these checks, you'd be the richer for it.
The reason being that America does not have a hard-money economy, it's a debt-based fiat currency economy. All the money in circulation in America has been borrowed and then re-lent. So borrowing more money ($168 billion for the stimulus package) and then re-lending it to Americans, as Bush is doing, only increases the debt load and debases the value of the currency outstanding (against a backdrop of stagnant wages and minuscule interest rates for savers).
If an American was planning to spend $40K this year on food, clothing, shelter, health and various other expenses and they were hoping to defray some of that cost thanks to Bush's stimulus check understand that by simply adding another $168 billion of debt (the cost of the stimulus package) on top of America's current multi-trillion debt load will continue the Bush-Paulson-Benanke trend of debasing the purchasing power of your money and, therefore, raise the price of goods and services by more than the $600 'gift' (without a commensurate rise in wages or increase in interest paid on savings).
This is why America's debt problems won't go away. Every dollar spent adds debt and spawns more fiat currency issuance which has the effect of decreasing the purchasing power of the U.S. dollars in your pocket. Bush tries to make up the difference by borrowing even more; borrowing 340 million a day to fund the war and close to 3 billion a day to cover U.S. operating expenses, not to mention Wall Street borrowing over $30 billion a day to keep their Ponzi scheme going. All this borrowing keeps alive the vicious financial spiral trending lower towards permanent currency debasement and possible sovereignty loss.
It's a decent article that takes into account the reality of our monetary system, which most major new outlets refuse to even acknowledge.