The National Debt and the Holographic Principle

9 Nov

In America partisan politicos have faux freakouts on Fox, but in Europe people are literally taking to the streets.

In America it’s the debt, the debt, the debt!

A quick bit of history for those of you with better weed than me, four years ago, about the time Barack Obama was elected, the Republicans discovered there was a national crisis of debt.

Not credit card debt, which had been balooning at an alarming rate during the Bush years, a debt to savings disparity in American households that had been unseen since the Great Depression, but Public Debt.

The debt level of households they cared about not a bit, in fact they opposed efforts to protect consumers from being lured in over their heads (did you know the check cashing places, where poor people pay fifty bucks to cash a three hundred dollar tax refund, are owned by hedge funds?) but the public debt, the money borrowed by our government, that was a huge problem, overiding all other considerations and needs.

They make their case by pointing out that you have to balance your checkbook, and so must the government, at least it does if they are not the ones controlling the federal firehose of funds, aiming the flow down the gullets of their already bloated benefactors.

These are the Republicans, so we know this is all bullshit, but we need to unpack it to really come to grips with the truth about the national debt. OK, so you need to balance your checkbook. This is true. We know this, If you don’t the bank will hammer you with fees before you even knew you were overdrawn. That only leaves…-and so does the government. Well no, actually as we all know, they don’t. If they spend more than they have, they just kick it down the road. We don’t have that option. We can borrow money to meet our debts, but we can’t just pay the interest whenever we choose. We always have principle that has to come due at some point. There’s an end to your mortgage, an end to your deal with Visa.

So when does the government’s mortgage come due? No one knows. How can this be? How can the government do this?

Confidence. We can’t borrow ad infinitum because of a lack of confidence. Sooner or later, consumers stop consuming, wage earners quit earning, the rules just don’t allow citizens to issue bonds. How does the government continue to borrow? Because investers have confidence in the nation, they buy into the future of the nation.

So in case you’re worried about the future of the nation, buck up, Nancy, United States Treasuries are still head and shoulders above all else. Our nation remains the gold standard in the most important aspect of global investment……

Trust. Messed up as things seem. Who do you trust, world?

Answer; the USeffingA.

In Part 2 an explanation of why we don’t have a big enough deficit, and how this relates to the Holographic Principle.

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