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If Debt is bad then Capitalism is bad, for Debt (aka Bonds) is KEY part of Capitalism
1- That this all of a sudden fetish of the Republican party and the right-wing Media/Cabal behind them about Debts is just the continuation of the Con Job that RNC has been running on American people for last 30 years.
2- If you actually want to have a Government with little or no Debt, then you would have policies that are EXACTLY opposite of what Republicans and the right-wingers propose, as per the China example.
3- Debt is not necessarily bad, in fact Debt is Great if it is put into good use, in fact Debt (aka Bonds) is a KEY part of Capitalism and KEY to growth and prosperity, after all the Bond market is much larger than the Stock market.
So right of the bat, you have your immediate indication of this new Con Job of the Republican party and the rightwing Cabal behind them about their sudden worry about "Government Debt" by the fact that they have started calling Bonds Debt. That is when they want(ed) to glorify Capitalism they would refer to how great and vibrant the Stocks & Bond markets are and how one of the best jobs was to work at Wall Street selling Bonds & Stocks. But now all of a sudden Bonds which is a key part of Capitalism has become "Debt".
You want little Debt & HIGH growth rates
And what major economy has little Debt, HUGE Surpluses & HIGH growth rates?
It is China.
So what is China doing different?
China has policies that are TOTALLY opposite of Republicans and right-wingers.
1- China does not have a Gargantuan Military. Since China spends a mere 10% of what US spends on Military. Moreover what Military budget China has is ALL spent inside China since China has ZERO bases outside of China, whereas US Military budget is mainly spent outside of US in bases in an astonishing 120+ countries.
2- China is not engaged in Wars 10,000 Kilometers from her borders, as US is all the time. Such as Iraq & Afghan Wars at cost of $3-Trillion to date, which Wars Republicans LOVE and Dems carry on the same.
3- But ABOVE ALL: China is running MORE THAN 50% of her economy on Socialized basis. Since China is running NOT just health care & higher education on Socialized basis, as Europeans do, but she also runs the Top banks, Top Energy companies, etc. on Socialized basis.
And here is the KILLER FACT in this regard:
Republicans and right-wing Media/Cabal that controls them (aka Wall Street gang) LOVE China as per them having invested Trillions of Dollars in China and moved 10s of Millions of Jobs from US to China. Or as per them telling you for the last many years via one story after another in the right-wing Media they control, from Fox to Wall Street Journal to Forbes, etc. as to how China is the fastest growing economy in the World and has little Debt, which are TRUE, but they did not bother to tell you why that is! Which as listed above is because China does NOT waste her Money on Wars 1000s of Kilometers from her border, as US does all the time under the lies of the right-wing Media, nor does China waste her money on a Gargantuan Military and above all as per China operating KEY industries on Socialized basis so Chinese people get these essential services, such as health care, college education, etc. FREE for the Taxes that they pay, while the VERY SAME Republicans and right-wing Media oppose operating same industries in US on Socialized basis.
If Republicans actually gave a SQUAT about Debt & Deficits
If Republicans actually gave a SQUAT about the Deficits, then they would be calling for:
1- Taxing the very rich such as Romney AT LEAST at the same rate as the Middle class, that is NOT 14% for Romney making $41 Million/year and 32% for someone making $60K/year
2- They would be calling for ending the 10 year Afghan war that is costing $200-Bill per year or cutting the gargantuan US Military budget by half, such as the 200K US troops in Europe at cost of $100-Bill per year, in fact US troops in an astonishing 120+ counties whereas China that has NO Deficits has troops in ZERO countries outside China.
2- They would be calling for Universal Nationalized Health Care (aka NHS), what Conservative parties in Europe, Canada, Israel, etc. 100% Support. Because NHS beside giving health care to ALL would cut health care costs by HALF, and thus the Deficits, by $1-Trillion per year, given the FACT that in countries with NHS, health care is taking 9% of GDP while in US with no NHS it is taking a DEFICIT busting 18% of GDP.
However Republicans vehemently oppose the above steps which would cut the Deficits by about $15-Trillion over next 10 years, which by itself would result in converting the huge Deficits in US into huge Surpluses.
So within these absolute facts, you have your absolute proof that Republicans and the right-wing Media/Cabal behind them (aka Wall Street gang) do not give a SQUAT about the Debts & Deficits and their sudden doom & gloom fear-mongering worries about Debts & Deficits has other hidden purposes.
Debt is not necessarily bad, Debt can be GREAT
Debt is not necessarily bad, Debt can be very good, IF it is put into good use rather than wasted.
That is for example if we issue $1-Trillion Dollars in Bonds (aka Debt) and with that we employ 10-Million people whom then create a Renewable Energy system that over next 100 years saves us $100-Trillion in Oil, Coal, etc. charges, and also creates a much cleaner environment, then that is (or was) a great Debt.
Or if you issue $1-Trillion in Bonds (aka Debt) with which then you find the cure to cancer, and thus save $100-Trillion over next X years, then again that Bond was a great Debt.
OTOH, if you borrow $1-Trillion and waste it in unnecessary Wars 10,000 Kilometers from your land, as US has done in Iraq & Afghan wars, then that is a very bad Debt. If you borrow $100s of Billions of Dollars to fund a gargantuan Military, such as have 200,000 US troops in Europe at cost of $100-Bill per Year to American Tax payers, then that is a again a very bad Debt.
So not all Debt is the same, there is good and bad Debt. So for Republicans to be demonizing Debt (aka Bonds), is just fear-mongering for their hidden agendas.
Bonds (aka Debt) is Key to Capitalism
In fact Debt is a key part of Capitalism. That is:
Governments fund their operations via 4 essential means:
1- Bonds (aka Debt)
3- Levies or usage fees
4- And in rare cases Governments may sell assets or even issue Stocks &
Warrants, although these are much smaller part of the budget.
Businesses fund their operations via 3 essential means:
1- Selling products & services
2- Bonds (aka Debt)
3- And in case of 0.001% of businesses, those whom have connection with the VC &
Wall Street gang, issuing stocks – more on this later.
People fund their operations via 3 essential means:
1- Salaries for Jobs they do
3- And in rare cases selling assets
So as you can see Debt is a key part of Capitalism. And specially for an individuals and small businesses whom have no means of raising capital via Taxation as Government has or via issuing Stocks as the Wall Street connected companies have, Debt is absolutely the life line to growth and expansion, to Capitalism.
People (aka Family) Debt is not at all same as Government Debt
One of the nastier Con Jobs that Republican and right-wingers have been running on American people, is that they compare the Debt of the Government to the Debt of a family and will then say such astonishing non-sense as:
"When a family has maxed their Credit card, they stop spending... Government needs to do the same..."
and will then use the threat of a family going bankrupt due to too much Debt to imply that the Government may go bankrupt due to too much Debt and thus use this scare tactic to Con the People into falling for their hidden agenda.
Because this is absolute non-sense since comparing a family to the Government is like comparing a glass of water to an Ocean, given the fact that Government has resources that a family does not have, such as the Government can raise more revenues via raising Taxes or imposing levies and usage fees, which a person has NO means of doing. And given the fact that Government has the Military, Police, Jails, etc. to carry out its will, which a person has ZERO of.
Moreover, if a family defaults on their loans they can be foreclosed on and the sheriff will through them on the street, whereas NO ONE is going to foreclose on a Government and throw all the people into the Ocean. That is if a Government defaults on their loans, all that will happen is the Bond holders will get a hair cut as for example was the case in the largest Governmental Debt default to date which was the 2001 Argentina debt default (*).
And taking the Argentine debt default as an example:
Did the World come to an End after Argentina defaulted on her Debt? Did we have a great depression? Were all currencies were proven to be "Fiat Money"? Did Gold Soar in value?
No. No. No. NO.
All that happened was that some Rich bankers got a hair cut on their Argentine bond holdings.
As for Argentina because it defaulted on its debt then it was able to use the 10s of Billions that it was paying to bond holders to create a Million plus Government provided Jobs which resulted in Argentina economy shortly after to do much better and to even enjoy an 8% annual growth rate to the point that Argentina is one of the best performing economies in the World now.
When and how to reduce Government Debt & Deficits
So How does one reduce Government Debt/Deficits? There are 2 main ways:
1- Bring in more Tax revenues
2- Cut expenses
But if you cut expenses domestically, which means cut Jobs, in the middle of a recession then you will cause even a worst recession and thus even less Tax revenues which means even higher Deficits, and this vicious negative cycle will go on until you are in a Great Depressions.
So how does one cut the Debt while creating MORE Jobs and thus a better economy? Answer: By growing the economy and thus increasing Tax revenues.
And how does Government grow the economy? By carrying out major domestic projects such as High Speed trains, Renewable energy, etc.. So what we need to do is to pull the US troops home from 120 countries they are based in and invest that saving in Domestic projects that will grow the economy here, and that is why China that has ZERO bases outside China and invests massively in Domestic projects such as High Speed trains has little Debt, HUGE Surpluses, 4.2% unemployment, etc. good economic news.
What about the so called “Euro Debt Crisis"?
"Europe Debt crisis" is mainly right-wing Media non-sense. For if there was real truth to this then US Dollar would have gained against Euro, but instead it is Euro that since its introduction in year 2000 at 1 to 1 to US Dollar has GAINED a MIGHTY % against US Dollar.
Why? Because European Debt is mostly good Debt since it is put into good use, it is used to invest in European people and cities from providing them with FREE health care for Taxes they pay, to FREE College education for Taxes they pay to modern Transportation systems such as High speed Trains in Germany, France as a result of which they depend much less on polluting Middle Eastern Oil since these are electric powered.
Which FACTS you can instantly see proven by Euro being MUCH MORE valuable than US Dollar which means the World is telling you with their money that they much rather keep their money in Europe because European economies are going to do much better than US economy because again European Governments are investing their Debt much more in their people.
$1-Trillion Debt for American college graduates
The really KILLER part of the sudden FAKE Republicans and right-wing Media concern about Debt & Deficits, is that not are they mainly responsible for the huge Debt & Deficits of the US Government, but they are also responsible for the huge Debt of the American people.
Because they for decades have been encouraging Americans to go into Debt, go into Debt to go to college, go into Debt to pay for your health care costs, etc. rather than having these essential services run on Government run Socialized basis so that an American, just like Europeans, Chinese, Israelis, etc. would get these essential services for nearly free, which is one of the best investments that you can make in your country, IF you cared about your country since an educated healthy person with NO Debt for these essential services will in time be much more productive and thus pay much more Taxes.
For example consider the fact that in Germany, France, Denmark, Norway, etc. you can go up to your PhD pretty much for FREE. Contrast this to US where getting a basic BS degree can cost you an astonishingly INSANE $100,000 AND MORE, putting your or your family in debt for years to come even if you get a good Job and God help you if you do not get a good Job. Since the same right-wing Cabal has passed laws to make it not possible for an American to get rid off their college Debt even in a bankruptcy.
So the event that gives most People from around the World a major boost in life, which is their free or very affordable College education because Colleges are Government run or subsidized, in US it becomes a heavy burden of Debt for most People, saddling them with crushing Debt for years to come and thus greatly retarding their growth and enjoyment of life because of course a heavily indebted person will be much less likely to spend on traveling, on exploring, which are all elements of a more successful life.
And this example of crushing Debt carried by typical American for fulfilling such an essential part of a better life, which is College education, also applies to other aspects of American life such as health care, resulting in 2Mill+ Americans going bankrupt each year due to health care Debt, while ZERO Europeans, ZERO Canadians, ZERO Japanese, ZERO Israelis, etc. go bankrupt each year due to health care Debt.
The 0.1% will own you by your balls IF you fall for this Con Job
WARNING: this part is not easy to understand, it requires understanding of raising capital via issuing Bonds vs Stocks.
Another aspect of this new Con Job of the Republican party and the right-wing Media behind them that all of a sudden “Debt is bad"?, “Our Grand children will have to pay this Debt"? etc. non-sense is that if you buy into this Con Job along with the Con Job that “Government is the problem and not the solution"? then the Wall Street gang will be able to control everything, from your “Eye Balls"? to the Government, to most businesses, etc.. I know what you are saying: “but they already do control everything"?, well even more than now, that is when Debt was not such a demonized instrument.
Here is how: beside Debt as an instrument for obtaining capital, the other method of obtaining Capital is to issue Stocks. And NO ONE but the VC Wall Street gang has access to this method of obtaining Capital.
So if you buy into to the notion that “Debt is bad"?, "we all know you cant solve a debt problem with more debt", etc. psycho babble coming from the Republicans and the right-wing Cabal behind them, then what you have simply done is to shut off the ONLY access to Capital that a typical American person or small business has, and shut off one of the 2 main access to capitals that the Government has, while the VC Wall Street gang has access to 100s and 100s of Billions of Dollars, via their access to raising capital via issuing Stocks which again ONLY and ONLY the VC Wall Street gang has access to.
So what do you think will happen if the avg person (aka Small businesses) and their representatives (their Government) stop investing into new ventures and projects because their only access to Capital which is Debt instruments is demonized and labeled as bad while the Wall Street gang has access to literally infinite Capital as per their exclusive ability to raise Capital via selling stocks? What will happen is of course that the Wall Street gang, and the 0.1% of corporations they represent, will own more and more of everything since while the rest of the economy is being starved of Capital, since average American cannot even borrow a relatively pathetic $250K against the equity of their house which generally is/was the only means that they had/have to Capital for launching a new venture, Wall Street gang will raise for example, and this is just an example, $2-Billion for Groupon, $1-Billion for Zynga, etc.
Non-sense: “we all know you cant solve a debt problem with more debt"
Quick rebuttals to some of the favorite new Con Job lines of Republican party, and the right-wing Media/Cabal behind them:
"We all know you cant solve a debt problem with more debt."
Non-Sense. 1st Debt is a problem ONLY if you waste it on unnecessary things that pay NO long term dividends, such as $3-Trillion US has wasted on Afghan & Iraq Wars. Debt is a GREAT thing if you invest it in worthwhile projects, such as the Golden Gate bridge, Hoover Dam, etc. So for example if you have built a bridge half away with a Debt of $1-Billion, you do not stop in mid-span and say that "We all know you cant solve a debt problem with more debt." but instead you go and issue another $2-Billion in Debt and finish the bridge as China for example just did with the largest bridge in the World - Here.
“We are borrowing from our Grandchildren"
Non-Sense. We are only "borrowing from our Grandchildren"? if we are again wasting the money (Debt) in unnecessary Wasteful things such as the $3-Trillion wasted on Afghan & Iraq Wars or 100s of Billions of Dollars wasted on basing US troops in 120+ different countries. OTOH, we are “We are investing in our Grandchildren"? if we use the Debt to build Renewable Energy sources, Energy efficient Transportation system, Universal nationalized health care system, etc. that will enrich them by 10s of Trillions of Dollars for each Trillion in Debt invested.
“When you are in a Hole you stop digging"
Non-Sense. So stupid not even worth responding to.
Update: March/2012 - Greece Defaulted on her Debt
As you know Greece defaulted on her Debt (aka Bonds) in Feb/2012, where bond investors ended up taking a STEEP 70% hair cut.
So what happened?
Did Euro crash? NO
Did the Stock market crash? NO
Were currencies were proven to be "Fiat Money"? NO
Did Gold soar? NO
So what happened? Actually Greece stock market is up since Greece defaulted on her loans (aka Bonds), and Euro is slightly higher, Gold is slightly lower, etc. NO "End of the World" event.
All of which is EXACTLY what we told you would happen. That is this fear-mongering by Republican lunatics and right-wing Media about "Debt" is exactly that fear-mongering, to continue on their Con Job, since Debt (aka Bonds) is key part of capitalism and as with any investment Bond investors may, and SHOULD, sometimes lose their investment, specially if it is for good of the Society.
Argentina's debt restructuring: A victory by Defaulting on the Debt
Health care costs half as much in countries that have Socialized health care
China has huge Surpluses vs US having massive Deficits. WHY?
For-Profit Colleges Owned By Wall Street Companies leave Grads with most Debt
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