The ‘Fiscal Cliff’: where do they get all these non-issues?

Anthony Migchels – Real Currencies Dec 21, 2012

While the self-declared ‘awakened’ claim victory through the ‘Internet Reformation’, the Money Power continues its relentless drive towards a long term global depression, setting the stage for the collapse of the American Empire. The West is to be ‘realigned’ to submit to deindustrialization and living standards comparable to that of the BRIC nations. The ‘Fiscal Cliff’ is just a good excuse to force through destructive austerity measures that will further the deflation in the economy.

The ‘Fiscal Cliff’ is a set of mandatory spending cuts and tax hikes if Congress does not raise the Government’s statutory spending limits. The debt ceiling will also have to be raised to allow the Government to borrow enough to finance its budget for 2013.

Of course, in itself this is not very exciting. But if the GOP folks do not work with the Democrats, the Government will be forced to cut spending drastically overnight. This would mean a substantial drop in demand in the domestic economy and economists expect a 3% decline in economic activity as a result, which would be pretty disastrous.

More important is the deficit that needs financing, which is projected to be about 1 trillion over 2013, or 5.5% of GDP. Is that deficit a problem?

Yes and no.

It’s a problem because it is caused by some truly insane spending.

Medicare is just a subsidy to the diabolical pharmaceutical cartel that is making trillions per year world wide with poisoning people with vaccinations, chemo therapy, radiation poisoning and many more terrors. It is killing as many as 760 thousand Americans per year in the process. Natural healing based on spiritual wholeness, diet, exercise and energy therapy would heal 99% of the sick at a fraction of the cost.

Worse still is the maintenance of the American Empire, costing about 1 trillion per year. The United States spends more on war and Imperialism (‘defense’) than China, Russia, France, Germany, Japan, Britain, Israel, India, Brazil and scores of other nations combined. Hence, presumably, the ongoing need to ‘rebuild America’s defenses’.

True, the Empire is far less lethal than allopathy, but it is an abomination nonetheless.

Furthermore, the Government pays 450 billion per year in debt service to the Chinese, the Japanese and the International Banking Cartel. While it could refinance the debt overnight interest-free and inflation-free via the Federal Reserve bank. Of course, that would damage the business case of Barclays, Bank of America, Citi Bank and others, who happen to own the Federal Reserve Bank.

But purely financially speaking, there is no problem. The Federal Reserve Bank buys up about 90% of whatever the Treasury is offering the Bond Market. There are no other buyers. The Asians are tired of America and the banks are not lending. This means that all new debt is financed interest-free. The Federal Reserve takes a very low interest rate on the Treasuries at the moment, and the Fed, since the sixties, pays back all profits it makes to the Government anyway, meaning any interest the Government pays is reimbursed.

This means that the Government can continue these deficits basically indefinitely.

But….but….musn’t our kids pay this debt back?

Continues …

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