Tuesday, July 12, 2011

They're firing teachers to balance the budget!....

Talk about desperate!

 Kids are dumb enough now. Maybe we should just shoot our selves and start the country over. Now, state governments budgets are like your household's. Income - outgo must balance. So somebody has to get their ass' kicked when the state governments are in deficit. Let's not forget, government monies fund pay checks. Cut spending you cut someone's pay check.

 Cut someone's pay check and they quit spending at Walmart. And they vote for the other guy!

Most of the state problems stem from the Federal government, who can tax, print or borrow, all the money they need, passing costs for various programs down to the states because of politics. The states then have to borrow money from the Feds to pay for some of these programs if the economy busts. When the bust comes to the economy, and they always do, the states are caught short and have to fire people maximising the down cycle. Hard for the government to cure unemployment if they have to fire the middle class who create most of the jobs with their taxes and consumption of goods and services.

Now we are in the old catch 22. People with jobs spend, borrow and pay taxes to support people who don't! Fire them and all you have left is.....PEOPLE WHO DON'T HAVE JOBS!

I guess it's because few voters and media talking heads have a clue how our system works. Or, more likely, to many people make a living scaring the fuck out of people who don't have a clue how our system works.

Our economy doesn't work like your household. Ours is a sovereign nation , actually a sovereign Empire, and we can print, borrow, or simply confiscate, any U.S dollars we want. If we decide to pay off the National Debt, (an accounting gimmick), we could simply fire up the presses and pass out the cash.

Want to pay Social Security for the next 50 years? No sweat. Need to invade China? Pay 10 million broke dicks a million or so a piece and let 'er rip. Need oil? Borrow 10 times as much and buy it all!

Who's going to stop us? (Not to say we ever would or should) You and I stop this from occurring because we, the people, are sovereign and the guys who rules us are scared shit less of pissing us off if we ever figure it out.

Ours is  the only economy that  rules the planet's resources. Every commodity is delineated in our dollar. Literally every country sells us more than we sell them and this creates surpluses of dollars on their books. All this money has to come home as it is ours. Every country has to buy our shit... stocks, real estate, bonds, etc. or they can't sell us anything because we don't take their money in trade!

We are the sovereigns!

It's amazing that so many people can't figure it out.......  cutting budgets during a bust leads to DEPRESSIONS which is a planet wide phenomenon. You raise taxes and cut government growth only during boom times to slow the economy to a more manageable level.

Bottom line how can firing people who spend their checks in the local economy improve the local economy?


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