| When we borrow money in a social business | | | | government receives in taxes comes only from |
| sense, we must repay it to the lender; and we | | | | our current productivity, because the past is |
| must also pay a fee for the use of that money, | | | | spent and the future is unknown, both in terms of |
| called interest. For most of us the money to | | | | government needs and dollars that will be available. |
| repay our personal debts comes from our labor | | | | Therefore there are no past taxes or future |
| and it is relatively easy to associate our labor with | | | | taxes to oppress us. Likewise, there is no past |
| the money we use to purchase things and repay | | | | national debt or future national debt to burden us. |
| debts. Hopefully we are learning that the money | | | | But there is a current tax burden and debt |
| we are borrowing is the surplus labor-wages of | | | | burden that we must finance daily, weekly, and |
| others that is made available to credit-worthy | | | | monthly. Since we carry this burden every day |
| borrowers through banks and other forms of | | | | and service this debt from our current productive |
| lending. We want to consume now, but we have | | | | labor, it is a problem for the present. It can never |
| no surplus wages available to exchange. So we | | | | be a problem for the future, and should not be |
| promise to repay our debts with our future | | | | viewed in a way that makes us believe we are |
| surplus labor or forfeit the stored wage value of | | | | postponing an expense from today until some |
| our property and possessions, if we cannot repay. | | | | time in the future. Whether government taxes us |
| Our government debt is not the same as our | | | | or borrows from today's surplus, it is receiving |
| personal debt, because government does not | | | | and using current dollars, paying current bills and |
| raise funds by transforming raw materials into | | | | current interest on current debt. |
| finished goods, or by bartering labor for labor. | | | | If the injury to society is improper taxation, the |
| Government is funded by taking some of the | | | | insult is the interest paid to those who have a |
| productive labor of our economy as taxes, and | | | | surplus to begin with. Interest is not a reward for |
| by persuading others to lend surplus labor-wages | | | | civic duty, nor should it be looked upon as an |
| to the government, with promises of eventual | | | | entitlement program for banks, businesses, and |
| repayment through taxes. Government does not | | | | the wealthy. As the debt grows it requires more |
| have property and possessions to offer to those | | | | and more interest to service it. This has the |
| who have lent to it, outside of public lands and | | | | potential of deepening the divisions between our |
| minerals. It only has the power to take future | | | | socio-economic classes by forcing some citizens |
| labor-wages from those who labor productively or | | | | to pay ever-increasing amounts of their |
| those who acquire surpluses by controlling such | | | | labor-wages to government, while government |
| labor. Government cannot save for the future, | | | | just transfers much of that wealth to the lenders. |
| for us as individuals, or collectively. Government | | | | Consider that while our federal debt is over |
| spends for infrastructure and immediate | | | | eleven trillion dollars, our states, counties, and |
| consumption. Anything left over may only be | | | | cities are collectively trillions more in debt. They |
| used to reduce the following year's taxes or | | | | also borrow from today's surplus to finance many |
| increase the current services to ourselves. So | | | | projects. They sell bonds to raise money and |
| government debt is really a misfeasance in the | | | | agree to raise taxes in the future to pay back |
| way taxes are collected, a malfeasance in the | | | | those bonds, with a competitive rate of interest. |
| way our taxes are spent, and a nonfeasance in | | | | But these are just many more cases of |
| the way we are protected from future tax | | | | borrowing from today's surplus instead of taxing. |
| burdens to repay that debt. | | | | Those dollars are paid in the present and near |
| We hear a lot about the amount of debt accruing | | | | past for goods and services that were available |
| in the government sector, business sector, and | | | | for our consumption, or we would not have those |
| the private consumer sector. Trillions of dollars of | | | | debts. Add to those public debts our private |
| debt! Where did all this money come from? What | | | | corporate and consumer debts that now exceed |
| manner of economy can generate such vast | | | | forty trillion dollars, and we realize that today's |
| amounts of surplus labor wealth (consumable | | | | consumption of today's production is neither |
| material goods and services), and yet tolerate | | | | Communistic nor Democratic. Only pyramids of |
| such vast amounts of debt? Much of our public | | | | Oligarchy Capitalism, or classes of Fascism, can |
| debt is long-term debt, which means that | | | | control the taxing system of today's production |
| whatever principle sum we borrow, be it on the | | | | to own the personal and communal debts of our |
| federal, state, or municipal level, we will pay far | | | | society. |
| more in interest, than principal, to those with | | | | With a national domestic productivity of ten trillion |
| enough surplus resources to lend to governments. | | | | dollars per year and a combined public and private |
| Our system enriches the very people that should | | | | debt more than sixty trillion dollars, we have |
| be taxed to ensure that we would not have | | | | managed to promise the payment of six years of |
| government debts. It would be interesting to | | | | our total future productivity to somebody. Most |
| know the sum of interest payments being made | | | | indentures of servitude were set at seven years |
| by all levels of government. The average working | | | | in Colonial times. Six years of total servitude in |
| taxpayer might be appalled at the amount for | | | | this "new age" is definitely out of bounds. And |
| which he and she are being milked and bilked. | | | | when you consider that only labor-wages can pay |
| It is very important for us to realize that debt | | | | a debt, the 100 million full time workers in our |
| can only happen when there is a surplus, because | | | | economy are each on the hook for an average |
| we can only borrow what is surplus. Trillions of | | | | $600,000 dollars of our public and private debt. If |
| dollars of debt arises from trillions of dollars of | | | | all of the interest paid on all debts averaged 5% |
| surplus productivity traded for immediate | | | | annually, then the average worker would be |
| consumption. Our society is producing a very large | | | | paying $30,000 dollars per year in interest, out of |
| surplus of goods and services and then | | | | their labor, on that total debt. |
| encouraging the consumers of that surplus to go | | | | Interest on debt is a wage cut. The more interest |
| into debt to consume it. The amount of internal | | | | you pay the less labor-wages you have to barter |
| debt in any country is equal to the amount of | | | | for goods. When we take out a loan for $1000, |
| surplus goods produced and consumed over and | | | | and agree to pay back $1100 over twelve |
| above a cash economy. Such debt reflects | | | | months, we are giving ourselves a wage cut of |
| consumption controlled by disparity of incomes in | | | | $100 for one year in order to consume today. |
| that society. | | | | We could save our wages for a year and |
| Consider the U.S. national debt, pushing 11 trillion | | | | consume later when we would only have to |
| dollars in 2009. The government establishes a | | | | barter our wages for the wage value of the |
| budget annually of a certain number of dollars. It | | | | goods we desire. Interest on loans is labor-wage |
| also estimates the amount of taxes and fees | | | | money. It does not increase the cost of goods; |
| that will come to it to pay the bills allocated in the | | | | rather it decreases the barter value of our labor |
| budget. In a balanced budget the taxes and fees | | | | by laying claim to our future labor-wages until the |
| equal the bills to be paid. If there is a surplus of | | | | loan is paid. The interest on the national debt is a |
| taxes, then either our taxes can be reduced in | | | | wage cut for all who pay taxes. If the annual |
| the future, or additional services can be purchased | | | | interest on the national debt is 300 billion dollars, |
| for all. If there are more bills than tax dollars then | | | | being paid by 100 million workers, then the |
| the government is running a deficit and needs to | | | | average person is paying $3,000 annually out of |
| raise taxes or reduce spending. Today, when | | | | their wages to the owners of that debt. |
| there is a short-fall of taxes to pay our common | | | | Government appears equally able to increase |
| bills, government is borrowing from the surplus | | | | wealth for some by cutting their taxes or cutting |
| rather than taxing the surplus, promising to tax | | | | the wages of our labor force and giving the |
| our surplus in the future to pay back for today's | | | | proceeds as interest-wages to the debt holders. |
| consumption without taxation. What makes future | | | | This wage cut occurs year after year and will |
| surplus more taxable than today's surplus, | | | | continue into the future. The laborers' standard of |
| considering that today's surplus is the only sure | | | | living is declining because many must have less so |
| thing? The concept of taxing the common | | | | that the debt financiers may have more. |
| produce of the nation to provide for our common | | | | The hidden dagger, ever threatening to |
| needs has been turned around to become the | | | | dismember our society and leave many of the ill |
| concept of reducing taxes and then borrowing | | | | and aged to fend for themselves, is the interest |
| what should be taken, and offering interest | | | | on the National Debt. The interest due on the |
| payments on those borrowings. The working class | | | | National Debt is the only government expenditure |
| is taxed on their Income by government, taxed | | | | that cannot be cut, altered, or abolished. All other |
| on their labor by their employer to provide profits, | | | | expenditures can be completely eliminated, if |
| and then taxed by the government again to pay | | | | necessary, to provide tax funds to pay this |
| interest to the employers when they loan their | | | | obligation. If the interest rate averages 5%, then |
| profits to the government. Though we continually | | | | it will cost 550 billion dollars per year to maintain |
| put off repayment of the principle of government | | | | this 11-trillion dollar debt annually. If the interest |
| debt by selling more bonds to cover for those | | | | rate should rise to 10%, then it will cost 1100 billion |
| coming due, we must pay the interest on that | | | | per year to maintain it. Consider that for 2008, |
| debt every year; and this payment comes from | | | | government income was about 2.4 trillion dollars, |
| taxes collected by the Treasury every year. How | | | | and the deficit for fiscal 2008 was about 460 |
| nice for persons that can afford to own a debt, | | | | billion dollars (without including the cost of two |
| which in a truly democratic society of equal | | | | ongoing wars), making a 2008 federal budget of |
| representation they would have been taxed on | | | | about 2.9 trillion dollars. If taxes paid to |
| their excessive income to avoid such debts. | | | | government six or seven years down the road |
| Congress has the authority to take whatever it | | | | were the same as in 2008, it would only require |
| deems necessary from the surplus of today to | | | | interest rates of 22% on the eleven-plus |
| do our public business. It makes no sense for | | | | trillion-dollar national debt to consume all |
| government to take by force a portion of every | | | | government income from taxes just to pay the |
| worker's labor as taxes and also borrow from | | | | interest due. There would be no money for Social |
| those who have such a surplus that they are | | | | Security, Medicare, national defense, government |
| willing to loan it to government. It is a defect in | | | | pensions, roads and bridges, schools, etc., without |
| government to borrow at any time, since | | | | borrowing 100% of our annual needs; an incredibly |
| government has the authority to tax the surplus | | | | scary prospect. And we are assured by most |
| labor of the present, which is the only source of | | | | economists and economic forecasters that the |
| income available to government and ourselves. | | | | National Debt will continue to increase in the |
| When government borrows from today's surplus | | | | future, simply because we borrow from the |
| rather than take that surplus through taxation, it | | | | surplus of today when we should tax. |
| is consuming the same surplus in either case. The | | | | Keep in mind that the eleven-plus trillion-dollar U.S. |
| private economy is not disparaged less by | | | | national debt represents the principle of loans to |
| borrowing than it is by taxation. Consumption is | | | | purchase and consume eleven-plus trillion dollars |
| consumption. What the government consumes is | | | | worth of goods and services. Such that after we |
| not available to the private economy, no matter | | | | have consumed what is bought we then owe the |
| how the government came by it. But the | | | | lenders that amount, eleven-plus trillion and rising. |
| obligation to pay interest yearly on that debt, and | | | | While we pay an enormous yearly interest bill to |
| the obligation to someday repay the principal of | | | | keep those lenders from demanding repayment |
| the debt, is a criminal conspiracy between our | | | | of the principle. |
| politicians and the debt financiers. With proper | | | | These trillions upon trillions of dollars of debt |
| taxation there is no interest or principle. | | | | represent untold years of productive labor of |
| A form of anarchy has replaced the | | | | millions to produce goods and services. That |
| representative democracy that used to reign in | | | | productive labor is done. The goods have been |
| America. Though our government has important | | | | manufactured, distributed, and consumed. So why |
| and legitimate needs, it refuses to tax our | | | | is there all of this consumption debt? We live |
| economy even when we have sufficient labor and | | | | together on the Earth, we labor with its |
| resources to pay our bills directly without the | | | | resources, and we consume its bounty. We may |
| need to borrow. This political crime is aggravated | | | | only use what exists, eat what grows, live in |
| by making the interest payment of the | | | | dwellings made from environmental materials. We |
| government debt, the only item in the national | | | | do all of this as one society. We cannot eat debt, |
| budget that cannot be reduced, or abolished, while | | | | shelter ourselves with it, heal the sick with it, or |
| all other expenditures can be reduced or abolished. | | | | provide for our future with it. Debt serves no |
| The fact is, the surplus is there or there would be | | | | purpose but to divide our society by oppressing |
| nothing to be borrowed. And if all government | | | | some and denying the liberties, equalities, and |
| income must come from surplus that exists | | | | responsibilities of creation. For the most part the |
| today, why is part raised by taxes and part by | | | | upper class owns these debts and profits by |
| borrowing, if not to enrich those who are already | | | | them, while the lower class appears to owe the |
| enriched by owning the surplus of our economy, | | | | debts and is forced to service them year by |
| at the expense of the laborer and the | | | | year. This is forced servitude that is contrary to |
| unemployed? | | | | our entire moral and political heritage. Our society |
| We must begin to view the national debt as a | | | | will not survive the increasing economic and social |
| problem for the present, rather than something | | | | crush of these debts. Our national debt does not |
| that began in the past and can be put off until | | | | provide national security, rather is guarantees the |
| some time in the future. The income that | | | | eventual disintegration of our nation. |