A Quote by Michael Hudson
Governments create money and spend it into the economy by running budget deficits. The paper currency in your pocket is technically a government debt.
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If I were a candidate for running, I'd say, "Look at what the economy has done." It's strong. We've created a lot of jobs. I'd be telling people that the Democrats will raise your taxes. I'd be reminding people that tax cuts have worked in terms of stimulating the economy. I'd be reminding people there's a philosophical difference between those who want to raise taxes and have the government spend the money, and those of us who say, "You get to spend the money the way you want to see fit. It's your money."
I have long been in favor of a balanced budget restriction at the level of the federal government of the United States. Because the federal government has money-creating powers it can, in fact, be very damaging if it runs a series of budget deficits. With the state government in the United States, they don't have money-creating powers. The automatic discipline imposed by the fact that they are in a common monetary unit and don't have control over the money power means that the balanced budget restriction is less needed.
If government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will. As a result, this 'inflation' of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy.
The Illuminati bankers rule the world through debt, which is money they create out of nothing. They need world government to ensure no country defaults or tries to overthrow them. As long as private bankers, instead of governments, create money the human race is doomed. These bankers and their allies have bought everything and everyone.
Lower taxes will stimulate your own personal economy by leaving more money in your pocket to do what you want - invest, save, spend, buy a bigger house, a nicer car, and give to charity. And lower taxes also lead to more money for the government to use on those things they've promised you. It's a win-win for everyone.
We know that advanced economies with stable governments that borrow in their own currency are capable of running up very high levels of debt without crisis.
You have countries that have lived beyond their means, with bloated governments, huge trade deficits, and people living off the government. Then you have others where poor people are working hard and underconsuming and their governments are buying all this debt and propping up the extravagant countries. All of this has to change. There's a tremendous moral hazard involved with this system.
What do the 5%, or the 1% actually use their money for? They lend it back to the economy at large, they load it down with debt. They make their money by lending to the bottom 95%, or the bottom 99%. When you give them more after-tax income, it enables them to buy even more control of government, even more control of election campaigns. They're not going to spend this money back into the goods-and-services economy.
Government, possessing the power to create and issue currency and credit as money and enjoying the right to withdraw both currency and credit from circulation by taxation and otherwise, need not and should not borrow capital at interest as a means of financing government work and public enterprises.
When you raise the budget, you make creative compromises. The higher the budget goes, the more cuts in your movie happen. When people talk about how movies are watered down, that's a direct reflection of money and budget. The less money you spend; the more risks you can take. That doesn't mean it will be successful, but at least you can try different stuff. The higher your budget is, the less you can do that.
Your money has never been safe in the government's hands, and it never will be. Governments spend money; it's just their nature.
Most governments, not all of them, but most, certainly don't want their citizens using gold. They want them in the currency that they are creating. When they are debasing money, or printing money, they are spending it and they want it to have as much value as possible when they originally spend it. Of course once they spend it, it will lose value for them and everyone else that holds it. But they need demand for their currency. They need as many people as possible holding it and transacting it. The more people that use gold, the harder it makes it.
The President sends us a billion-page paper that shows how he would spend the money if he were spending the money. He doesn't have the authority to spend the money. He doesn't spend $1 of the money.
To jump-start our economy, we must leave cash in your hands - because if you've got money in your pocket, you'll spend it at the hardware store or the corner market, and that will drive job growth in our private sector.
At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But it will also need additional revenues. Should the government not receive them, we will all get punished with higher interest rates.
The point of taxation isn't that the government knows better than you how to spend your money - it's that the government, by virtue of being the government, can spend money in ways that no private citizen or group no matter how powerful, can.
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