Deficit Schmeficit

Let’s start with a little exercise, everybody, pull a dollar bill (or any bill) out of your pocket. OK, on the side with the dead president’s picture, what does it say on top? It says, “Federal Reserve Note.” On the bottom, it is signed by The Treasurer or the United States and the Secretary of the Treasury. What exactly do they need by note? Per Webster, a note is, ” a written promise to pay a sum of money or a written acknowledgment of a debt from which a promise of payment can be inferred.” In other words your 5 dollar bill is like a check from the government for 5 dollars. In other words, the 5 dollar bill means that Uncle Sam owes you 5 bucks!

So, now that you know that the government owes you 5 bucks, go to the treasury and collect it? Sounds pretty absurd doesn’t it? Now figure all the one, five, ten, twenty and hundred dollar bills out there. Now also figure the ones the bank is holding on for you (lol) and of course the T-Bills and T-Notes and T-Bonds, yada yada yada. You add all that together and that is your national debt, that government has no way to ever pay this back except with more debt (You cash in your $1000.00 T-Bill and the government gives you $1000.00 in Federal Reserve Notes, which just means that the government still owes you {drum roll please!} ONE THOUSAND DOLLARS! You see until the 1970’s the US was on the Gold Standard, which meant that our federal reserve notes were worth a certain amount of gold but President Tricky Dicky took us off of that. Now the federal reserve notes are backed by NOTHING, our economy is just like Seinfeld!

So why are people worried about the deficit? All that means is that the US Government did not issue as many Federal Reserve Notes as it thought it would have to and more are printed. BUT THEY ARE NOT WORTH ANYTHING ANYWAY. When we have a surplus, all that means is that the US Government issued more Federal Reserve notes than it thought it would need, you know what, in that case, they wasted paper. The trees paid dearly for the Clinton Surplus!

Last year, My wife, Karen, My father in law, Ken and I visited The Money Factory, just north of Fort Worth TX. This is where they print the Federal Reserve notes. It was just amazing watching them print off the five dollar bills by the sheet. This operation goes on 24/7 all year round, so not only is your money not worth anything, it is also abundant. Since it is abundant and worthless, why not go out and get yourself a bunch of it?

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