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Economy Squeezed As Debt Accelerates

February 28, 2012
Rep. Ron Paul

Senator Jeff Sessions, ranking member of the Senate Budget Committee has pointed out that our per capita government debt is already larger than Greece’s.  Per person, our government owes over $49,000 compared to $38,937 per Greek citizen.  Our debt has just reached 101% of our Gross Domestic Product.  Our creditors see this and have quietly slowed down or stopped their lending to us.  As a result, the Federal Reserve has been outright monetizing debt as a way to patch things together and keep the economy on life support a little longer.  There is rapidly shrinking demand for our debt, and confidence in the dollar is falling.  This phenomenon is hidden only by the fact that confidence in all other fiat currencies is falling faster.

None of this seems to really alarm the administration, obviously, as they have just released a budget that accelerates spending and borrowing.  The reason the debt and deficits plague the economy, according to this administration, is that the American economy is not taxed enough.  Therefore, hidden in the fine print of the budget is a provision that ramps up the corporate dividends tax rate from its current 15% to 39.6%.  In addition, certain deductions and exemptions will be phased out; an additional 3.8% Obamacare investment tax surcharge will be tacked on, bringing the effective dividend tax rate to 44.8% in 2013.  Keep in mind, this is not just a tax on big business, this is a tax on anyone who depends on dividend income to live – retirees will be hit hard by these changes and dividend yielding stock prices will adjust downward rapidly to reflect their decreased value.

And now… the rest of the story. …..

One Comment leave one →
  1. olde reb permalink
    February 29, 2012 6:37 pm


    I have filed a pro se qui tam Complaint under seal and in camera naming the Federal Reserve as having received the value of inflation as hidden profit in violation of criminal laws.

    The value of $7 trillion profit over the past six years is claimed to have been hidden in the accounting records of the FRBNY exclusive handling of Treasury security auction funds.

    In a simplistic succinct scenario, the payment of government (deficit) bills is essentially paid with money off of the printing press for which the Fed receives a Treasury security. The fiat money is then in circulation and, after moving through the financial structure, eventually becomes the funds that will be used to purchase the (deficit) security acquired by the Fed and sold at the auction.

    These funds are mingled with the funds from securities rolled over from prior years to conceal the destination. The first case (deficit securities) produces inflation and a national debt. The second case (rollover securities) does not. If the deficit funds went to the government as claimed, there would be no inflation. The Fed receives the value of the inflated economy.

    The Federal Reserve scam is detailed at RIP OFF BY THE FEDERAL RESERVE.

    Whistleblower actions have been routinely dismissed if not represented by approved professional counsel. Would you believe that an email search of the metropolitan area has not found a firm that wants to be involved ???

    Do you know of any lawyer that would want to be involved ??

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