Check Paragraph 6 Of This Article: HERE
It's obvious most politicians don't understand.
The bankers know full well and they are counting on YOU not understanding, too.
There Is One Way That New Money Is Created or "Born".
1. When a loan is made, only the principal is created.
2. If only the principal is created, then no money is created to pay the interest on the loan.
3. Therefore there is always more debt than money to pay it.
A MESSAGE TO "DEMOCRATS":
If all money is created as a loan, then taxes are paid with loan principal (borrowed money).
Increasing taxes WILL MAKE THINGS WORSE!
Why? If taxes are to be paid in money, and all new money is loaned into existence, then somewhere the money collected as taxes had to be borrowed. You cannot borrow your way out of debt. Increasing taxes will place a two-fold burden on the economy (less money to grow the private sector, and an increase in private sector debt) and you will worsen the depression.
Expect more lay-offs, more inner city decay, decreased revenue as fewer people can find work.
Oh, and expect voters to blame you.
A MESSAGE TO "REPUBLICANS":
If the principal on a loan payment gets extinguished at the time of payment, then "balancing the budget" WILL MAKE THINGS WORSE!
Why? If the only source of new money coming into the economy is new loans (government, business or personal) and you slow the new borrowing, while at the same time loan payments are being made (mortgages payments made, car payments made, credit card payments made, government bonds paid, Treasury securities redeemed, student loan payments made) and that principal amount is extinguished from circulation, you will worsen the depression. Study this illustration.
Increasing taxes will make things worse.
"Cutting spending" (they should say borrowing) will make things worse.
Your ONLY remedy is a wealth based monetary system.
With a wealth based money system, you could turn this economy around in a flat hurry, launch a full scale, value added infrastructure rebuild, pay off our debts, build a thousand ship ocean clean-up fleet (for oil, toxic chemicals and plastics), bring desalination plants online, rebuild the electric grid, provide jobs, jobs, jobs, and heal the world of this economic cancer called debt money.
Or, do as you have been doing and rearrange the deck chairs some more, as this debt money system begins to groan in earnest, rivets popping and our nation taking on water faster then we can bail it out. It will sink. It's math - you can't outrun it, no matter how many knobs you turn or switches you flip - you cannot borrow yourself out of debt!
If the GWP (Gross World Product) is just over $70 Trillion, and the U.S. owes over $250 Trillion, how will raising taxes fix that balance sheet? How will cutting spending fix this when the gross production OF THE ENTIRE WORLD cannot pay what we owe?
You cannot fix it with the same thinking as created this debt cancer. You need a cure.
Demand a wealth money system, before it's too late. Here's how to start.