Krugman on January 1, 2012, made his best attempt to make sure people still do not understand debt. He brought up the solution that we need to spend more to fix the economy. While he is correct, that in our current mass misunderstanding that we need to use the national credit card to fix the economy, he glosses over that his solution is a solution which benefits the aristocrats at the expense of the working serfs.
Unfortunately, Krugman does not recognize the dismal economic facts and observation of widening income disparity and undeserved poverty among ill-gained prosperity, which is what current Occupy Wall Street protests are protesting, despite a lack of understanding of debt. The government is taxing earned income while allowing others to gain unearned income through the deficit spending of Congress, which leads to many things, including the outsourcing and off shoring of jobs, debts, and the wages paying interest on such debt exported to China.
What Krugman proposes is what Reagan did. Reagan used the national credit card to bring about an American prosperity. Krugman is like those he opposes. Krugman, like the funded stooge he is for the top 1% who pays his salary, falls short of resolving this concern with the proposal of a public debt-free money system, like the money George Washington used to fund the American Revolution and Lincoln used to fund the Civil War. Instead he credits the national debt used to fund World War II for bringing us out of the Great Depression, with no mention of the monetary changes, such as the Gold Reserve Acts of 1933.
He claims that we are paying interest to ourselves, if you ignore that growing leak of interest flowing into China and other nations and the fact that the working class are paying income taxes to make interest payments to wealthy individuals. I hope that Krugman will make clear in the future that when he says “ourselves,” he means the people who own his mind and soul.
The working class is paying income taxes on their labor, reducing their wages and ability to compete with foreign labor, at the benefit of wealthy people around the world. While it is true that Americans hold most of the U.S. debt, such is still leading to the outsourcing and off shoring of not only the jobs of the working serfs but is also leading to the outsourcing and offshoring of the aristocratic class collecting tribute payments from the American serfs. Krugman should ask himself how much interest he is personally collecting on national debt. It is likely that Krugman is earning more through his writing than the interest he collects from the American tax payer. Krugman should try to do some independent thinking in 2012, or learn to write in Chinese.
I appreciate the Left’s compromise with the bankers that if we’re going to have a debt-based monetary solution, we should at minimum get something for it, such as public infrastructure. However, the solution of exponentially increasing national debt to keep our economy growing is starting to fail from the giant trade deficit with China and the tribute payments we make to China as we export that debt, not to mention the increasing amount of interest we owe to “ourselves, “the top 1% among us. The ship of deficit spending with interest-bearing debt paid to the wealthy by the working class is sinking. The American serfs are outsourced and off shored and has paid all the interest they can pay to the usurers, especially when the banks idea of fixing the credit crunch is offering credit cards with 23% interest rates and new banking fees. There is no more blood to squeeze from the American working class, even if you are able to give some of them jobs building bridges and the rest of them some new bridges to sleep under. Let us hope that Ron Paul does not get his way, and that the homeless would not have to pay rent to a Spanish corporation to sleep under the privatized bridge.
The best thing we can do is to free the American working class, like Lincoln and George Washington did, from usury. We can stop the export of national debt and stop making tribute payments to the wealthy. We can free up trillions of dollars for private investment if we paid off the national debt with true debt-free Greenbacks, if the government actually printed the money supply rather than borrowed it. Eliminating the income taxes used to pay interest on national debt and redirecting the trillions towards private investment would rebuild America’s manufacturing base and make American labor competitive with foreign labor.
We can also stop taxing earned income and start taxing usury and rent, so that we can avoid another real estate and credit bust. If we must have deficit spending to finance something like a war, inflation is much more fair and affordable tax which actually encourages domestic production unlike the income tax on wages which punishes domestic labor.
Hey, let’s exchange links.
On this topic: sure, “we” need to spend money. But that doesn’t mean Congress has to spend it via unconstitutional or wasteful programs. Nor, “public-private partnerships” such as infrastructure bank owned by Carlyle, Sachs, Morgan and the like. New money need not enter into the federal budget at all (except for the expense of printing it). It should go to States, if not localities,and be spent from their budgets, maybe with a stipulation that it go to per capita grants. But, eventually of course, you need an LVT to sidestep the inflationary effects.
“He claims that we are paying interest to ourselves…”
Not to me. I don’t own any of it.
Even we all did own some debt, why the hell should we sell it to ourselves, to enrich a few expensive whoiesalers, called primary dealers?
“It is likely that Krugman is earning more through his writing than the interest he collects from the American tax payer.”
Who knows? Between federal, State, muni…
” Let us hope that Ron Paul does not get his way, and that the homeless would not have to pay rent to a Spanish corporation to sleep under the privatized bridge.”
When did Paul come out in favor of privatizing infrastructure?
I say per capita grants rather than the usual recommendation, infrastructure, since infrastructure locks up so much capital and pays out so slowly. Cash directly to consumers will go into fast-turnover goods rather than being poured into concrete, asphalt and steel and only providing onetime temporary employment to a limited subset.. We actually need all of the above, but some types of spending jump-start the economy faster than others.
i think you can do it all…. you can pay off the national debt, end income taxation, build some bridges or high speed rail (or just provide the land for private companies to build high-speed rail), and offer a citizen dividend … all with a 100% reserve public debt-free currency. we might want to reduce military spending though to make sure we can afford infrastructure spending.