[Homestead] Morning thought

Gene GeRue genegerue at ruralize.com
Thu Feb 3 09:44:34 EST 2005

>In this case "invest" is a euphamism for "spend" because it all still 
>comes down to this one thing ... the only way the government has to redeem 
>those SS T-Bills is to tax the people in the year in which they are redeemed.

Of course. The fiscal strength of our government is its ability to raise 
capital through taxation. How else should it get it? Almost everything the 
guvmint pays for is paid by taxes collected from corporations and 
individuals. (We get a bit of income from leases.) All government paper, 
whether bonds or any form of T-bills are redeemed by government income 
which is essentially synonymous with taxes. I read this morning that the 
trust fund T-bills receive three percent interest. That interest accrues 
until it is needed and when the trustees need it, the government must pay 
it or default. Default equals revolution. No president, senator or 
congressperson could risk it.

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