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

Immediate Use of Ivermectin Medicine Globally Can End COVID-19 Pandemic: Scientists

COVID Fraud – Lawyers & Medical Experts start legal proceedings against W.H.O and World Leaders for ‘Crimes against Humanity’

School Board Nazi struggles to breathe while she orders kids to wear masks…

Warren says she'll run for reelection to Senate

WiThheld rouTers ... The laTesT of many roadblocks --- To Arizona SenaTe's audiT of 2020 elecTion

Windham ResidenTs ... Refuse --- To Be Silenced

When Cruelty Actually Is The Point

Fauci's agency spent over $400k on experiments grafting aborted fetal scalps onto mice and rats

Who Is Bill Gates? (Full Documentary, 2020)

Here Is What Republican Voters Really Believe in. It's a Shame the GOP Has No Idea

guTTing america ... going back --- on Track

“The ElecTion is Over”... Trump HaTer Cindy McCain Trashes Arizona ElecTion AudiT ---“Ludicrous” (VIDEO)

DissidenT Episcopalians awarded $100 million worTh of property ... as U.S. Supreme CourT --- declines To Take up Fort WorTh case

Joe Biden needs to stop lying about the cause of the border crisis and start fixing it

George W. Bush says ... The Republican ParTy has a shoT aT fuTure elecTions if iT curbs --- iTs 'whiTe Anglo-Saxon ProTesTanTism' ( heriTage )

BREAKING EXCLUSIVE - TGP’s Jordan Conradson InTerviews AZ AudiT DirecTor Ken BenneTT — HUGE DEVELOPMENTS ... Including Plans To Triple OuTpuT --- QuesTions on Number of FraudulenT BalloTs (VIDEO)

Can Democrats Avoid a Wipeout in 2022?

Biden declares war on America -- literally

Former Trump assisTanT says ... 'freighT Train' of elecTion resulT audiTs coming --- 'The MAGA movemenT is demanding answers'

Tim Scott's 2024 Star Rises After Biden Rebuttal

“We Will Find MisTakes – IrregulariTies ... We Probably Are Going To Find OuTright Fraud” --- AZ GOP Chair Dr. Kelli Ward Give - UpdaTe on HisToric AudiT (VIDEO)

Australia security official warns nations are ‘beating drums’ of war amid Asia-Pacific tensions

Former Obama White House advisor Seth Andrew arrested, accused of stealing from charter school he founded

This is fo sucking funny ... Joe has no clue --- The dumbocrap leaders are in a hearT aTTack panic!!.

The voter suppression lie

War Room ... Rachel Maddow Is Worried abouT whaT AZ ElecTion AudiT will Find — She Knows Georgia Is NexT

Conspiracy Queen Rachel Maddow ... Panics Over --- ‘Dangerous’ Arizona Vote AudiT

‘True To iTs docTrine’ ... ConservaTives plan for a new church afTer UniTed MeThodism spliTs --- over homosexualiTy debaTe

Michael Eric Dyson - WhiTe People Can Help BLM ...by Holding RacisT RelaTives --- ‘To AccounT’ aT Thanksgiving

Derek Chauvin ... The GreaT --- WhiTe DefendanT

New Mexico state trooper executed by Mexican cartel member… Horrific Video

John Kerry in Earth Day wonderland

Democrats Are Cheaters

Derek Chauvin's FaTe ... Is Now in The Hands --- of The Jury

Fools' overture

Democrats Are Terrified of Georgia

Climate Media vs. Climate Science

Why We Black Leaders Support Voter ID Laws

Pelosi: ‘No Plans' to Bring a Court-Packing Bill to the House Floor – at This Time

B-1 Bombers Are Deploying To Norway For The First Time With An Eye On Nearby Russia And The Arctic

High School Coach Fired After Refusing To Enforce “Insane” Outdoor Masks During Sports

CNN Says Chinese-Style Fonts Are Racist

Gran Torino Denounced for Anti-Asian Racism

'It Is Still Not Safe To Go Outside,' Says Fauci's Head In A Jar In Year 2739

Biden Re-Ignites the Waco Fire

Over 500 White People Have Been Killed By Cops Since 2020. There Has Been No Rioting Over Those Deaths.

Buttigieg on Exaggerated Infrastructure Jobs Estimate: ‘I Should Have Been More Precise’

Videos - ChrisTians Tear Down MeTal Fences ... Denounce The Closure Of GraceLife Church --- Due To A COVID-19 ResTricTions

Pete BuTTigieg ... To evangelical vaccine hold-ouTs --- Maybe iT's parT of God's plan

TINHORN FLATS ... The Symbol of Modern Day America --- AgainsT Tyranny


Status: Not Logged In; Sign In

Business
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: 87

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