Why the Deficit Doesn’t Matter

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Will the new tax cuts raise the federal deficit?  The hand-wringing liberals seem to think so.  And that is the only remaining argument they have against the Trump tax cuts.   That is because virtually all American socio-economic groups benefit financially from the cuts.  All Americans will keep more of their hard-earned dollars for themselves, even the liberals.  So there is really no substantive argument to oppose the tax cut legislation, from anybody…well, except of course for that pesky deficit.

Now it is no foregone conclusion that the deficit will rise anyway.  But in the minds of the nay-sayers, life is a zero-sum game, pitting the “haves” against the “have-nots.”  In their world, even if they benefit from a tax cut, if another perhaps wealthier group, benefits as well, that’s bad.  In their world, all tax cut benefits should accrue to them and them only, even if they don’t pay taxes.  Under this plan, the typical family of four earning the median family income of $73,000 will receive a tax cut of $2,059.  But that’s just not good enough… and just look at what these “tax cuts for the rich” are doing to the deficit.  Friends, nothing is good enough for these people, so just stop listening to them.

But just for kicks, let’s deal with this, their only real argument for opposing the Trump tax cuts—the deficit.  Let’s assume it drastically increases after the tax cuts hit.  Let’s talk worst case scenario for a moment.

Friends, it doesn’t matter.  Ultimately, the deficit does not matter.  One day, and who knows it might be soon, they will have to unveil the truth to the American people and fix the problem.  Trump knows this.  They all know it.  But the establishment wants to keep you in the dark regarding the solution because if you know the truth you can’t be controlled.  Trump cannot reveal his hand until it is time to play it.

So what does Trump know that you and I aren’t supposed to know?  During the 2016 campaign, Trump was asked about paying down the national debt.  His answer was telling, and to many who do not understand how the system works, alarming.  Trump responded, “I hate to tell you—you just print the money.”  That’s right friends, you just print the money.  You monetize the debt.  I know; you are already thinking the “inflation” word.  No, what Trump would do would not be inflationary, and he would still get the debt paid.

What Trump knows, and what you should know is that the entire US currency supply is borrowed at interest from private, Federal Reserve banks.  Those banks, not you, own the very dollars in your wallet. Whoever borrowed them into existence is still paying the debt service on them.  You just possess them.  Welcome to the biggest scam in the history of mankind.

Trump understands money, or better put, currency.  He understands where it comes from, how it is borrowed into circulation, and better yet, how to pay it off.

I have said this many times, and that is that there is no reason on God’s earth that a sovereign national government should have to borrow to pay its bills.  But when a nation chooses to use private currency, owned by banks, rather than public currency, owned by the people themselves, that leaves no means to pay its costs other than to borrow.  Yes, it can tax its citizens the entire amount, but even the dollars received in taxes must be borrowed.  And because the banks do not issue the currency to pay the interest, a society, including its national government, is left with no choice except to borrow more and more, just to keep paying its bills and servicing the debt.  So deficit spending happens in all corners of any national economy that chooses a private banking system to issue currency.

Importantly, according to this “bank money model,” when a debt is paid off, the dollars associated with that debt are removed from circulation. 

And so what would happen if Trump decided to change the way dollars are issued?  What would happen if Trump assigned the US Treasury the job it was designed for and issued virtually the same currency into circulation the banks have issued since the Federal Reserve Act of 1913?  What if each of those new dollars Trump issued through the federal government went to pay off the federal government’s debts, at zero cost to the government?

The answer is that the US economy would be flooded with dollars that no longer have to be paid back, equity rather than debt, and the national debt would systematically diminish.  Over time, the national debt would be paid off, the American people would begin to pay their own costs of living out of equity rather than debt, and America would begin a period of true prosperity as its over $60 trillion in debt would also recede.

In the end, power would be taken away from the banks, away from the government and given back to the people where it belongs, which is Trump’s promise.  I assure you Trump knows this.  And I assure you this alternative is rolling around in his head.

My wishes for the merriest of Christmases, the best one for America in a long time.

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