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Let's start by looking at what happens if you pay your taxes by writing a check. When the US government gets your check, and it's depositied and "clears," all the government does is change the number in your checking account "downward" as they subtract the amount of your check from your bank balance. Does the governemnt actually get anything real to give to someone else? No, it's not like there's a gold coin to spend. You can actaully see this happen with online banking - watch the balance in your bank account on your computer screen. Suppose the balance in your account is $5,000 and you write a check to the government for $2,000. When that check clears (gets processed), what happens? The 5 turns into a 3 and your new balance is now down to $3,000. All before your very eyes! The government didn't actually "get" anything to give to someone else.

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Can you see now why it makes no sense at all to think that the government has to get money by taxing in order to get money to spend? In no case does it actually "get" anything that it subsequently "uses."

So that's why the government doesn't need my taxes, or to borrow money... all they need to do is change numbers in their accounts, and they can spend indefinitely. Holy CRAP! This guy is fucking funny as hell! He should be on the stand-up comedy tour bus! So all I need to do to be a millionaire is change a couple numbers in my bank account! Fuck yeah! It's so damn simple, why didn't I think of that!



I couldn't bring myself to read the rest of the article without peeing my pants. His argument is just one step removed from trading a child two pennies for one quarter, and telling the child they have twice as much now. Sadly, however, this is why the price of precious metals is through the roof and our currency is being devalued to the brink of a currency collapse, because the government is doing just that... creating more money by just changing numbers in their account instead of raising actually money, which isn't very funny at all.

I don't mean to be disrespectful, I'm not laughing at you... I'm laughing at him. I've never seen anyone try to spell it all out like as if it makes sense, totally ignoring the fact that "intangible" doesn't mean "not real". Those "numbers" they are changing in the bank accounts actually represent a "REAL" asset, despite his claim they don't.

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Edited by Gatinho (04/10/11 07:55 PM)