Monday, November 16, 2009

Where does the money go?

In these times of financial crisis we hear a lot of talk about job creation, taxes, commerce, reform and all sorts of other buzz words relating to the economy, money and jobs. There are tons and tons of information floating around out there but how much of it can be believed and what does it all mean? Countless commentators, pundits and paid experts show up as talking heads on the news blathering on about whatever they want pushed due to political agenda, fan base or whoever backs the research firm that writes their paycheck and can you really trust the word of a man, or woman, who has an obvious agenda? Are these five minute spots our ADD news scheduling allows a subject this complex really enough time to explain a topic as complex as our national, or world, economy?

In a word, NO.

Compound this lack of readily available information to the common citizen with the deplorable state of our educational system and the general apathy our society instills in our youth and have end up with a world full of people who have no idea about basic economics, let alone our local, state or national economy, forming opinions, voting people into office and just generally flat out spreading their ignorance like wildfire. Think I sound jaded and pessimistic, think again? The other day I was lectured on the economy and taxes by a young man who did not understand the concept of inflation; that’s right, this kid did not understand one of the most basic financial concepts yet he was going to explain to me all about how wrong I was regarding the economy… Don’t get me wrong, I am no expert on these things and would never claim to be one but I do think I have a good firm grasp on the basics, a logical mind and I try to keep myself informed.

As a public service I have decided that I am going to dedicate a portion of my little slice of the internet to spreading some info about the basics of economics and how it effects us as people because… well because I think there are a lot of intelligent people out there who are forming opinions based on bad info.

Today’s edition will be a quick lesson on where the government gets its money which sounds like a complicated issue, but it’s not; in fact it’s a one word answer:


That’s right; every single penny the government spends comes from our pockets. Yours’, mine and that other guy over there’s pocket.

I know, I know it seems hard to believe but that’s it! The only source of income the government has is taking money from us be it in the form of taxes, fees, fine or loans (various forms of bonds and such are nothing more than loans to the government)from private citizens that’s where it all comes from.

Now, here is the part where things always go off the rails; people start to go on about adjusting balance sheets, printing money, loans from other countries and shit like that. It’s hard to wrap the mind around it but all of those things actually pull money out of our pockets as well.

Adjusting balance sheets is just the modern form of printing more money which will always result in inflation. The basics of supply and demand dictate that the more of something you have the less it is worth so if we create more money we are actually devaluing the funds currently held by every man, woman and child in America which is just a really, really sneaky way of taxing us. The fed gets a bunch of money to pay its debts and in the long run it comes out of our pockets.

Foreign loans not only come out of our pocket but are a double fucking; where do you think Unca Sam gets the money to pay these things of? They either take our tax dollars or they print more money which, as we already learned, is just a sneakier method of sticking their hand in our pocket. But this one doesn’t end there, that is only the start of us getting fucked in this deal; do you think that money is loaned interest free? Fuck no, there’s interest on that shit just like on your credit card and who pays that in the long run? You got it, we do.

Seeing it all laid out like that kinda makes you a little more uptight and sensitive about where the government spends its money, doesn’t it?

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