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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Morning thought
  • Date: Thu, 03 Feb 2005 07:44:34 -0700


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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