Balance of Payments Reform

[william the wie]

The big question about How High the Dow is balance of payments and using a trade surplus to pay off the national debt:

When is NAFTA going to be reformed or replaced?

When do we engage in low level trade wars to get people's attention.

A trade surplus has always been a pre-condition of paying off a national debt and was one of the major policies pushed by Adam Smith. That part of the mechanics of paying off a national debt has not changed. Entitlement reform is also needed.

While tax reform is nice and necessary, for profit, wage and employment increases balance of payments is more important. So far reforming trade deals to reduce the subsidized dumping of goods and service on the US market has not been effectively addressed. But that is the big problem in balance of payments.

 

[Toddsterpatriot]

The big question about How High the Dow is balance of payments and using a trade surplus to pay off the national debt:

When is NAFTA going to be reformed or replaced?

When do we engage in low level trade wars to get people's attention.

A trade surplus has always been a pre-condition of paying off a national debt and was one of the major policies pushed by Adam Smith. That part of the mechanics of paying off a national debt has not changed. Entitlement reform is also needed.

While tax reform is nice and necessary, for profit, wage and employment increases balance of payments is more important. So far reforming trade deals to reduce the subsidized dumping of goods and service on the US market has not been effectively addressed. But that is the big problem in balance of payments.

A trade surplus has always been a pre-condition of paying off a national debt

A trade surplus doesn't belong to the government and a trade deficit isn't owed by the government.

 

[ChesBayJJ]

The big question about How High the Dow is balance of payments and using a trade surplus to pay off the national debt:

When is NAFTA going to be reformed or replaced?

When do we engage in low level trade wars to get people's attention.

A trade surplus has always been a pre-condition of paying off a national debt and was one of the major policies pushed by Adam Smith. That part of the mechanics of paying off a national debt has not changed. Entitlement reform is also needed.

While tax reform is nice and necessary, for profit, wage and employment increases balance of payments is more important. So far reforming trade deals to reduce the subsidized dumping of goods and service on the US market has not been effectively addressed. But that is the big problem in balance of payments.

What trade surplus?

 

[william the wie]

Exactly the problem

 

[Natural Citizen]

... pay off the national debt:

They're not paying off the debt. They have no intention of doing so. They're monetizing it. To pay for deficit spending the Treasury borrows currency by issuing a bond. A bond is an IOU. It's a piece of paper with numbers printed on it that says loan me a trillion dollars today and I promise that over a ten year period I will pay you back that trillion dollars. Plus interest. But Treasury bonds happen to be our national debt. The Treasury then holds a bond auction. And the world's largest banks show up and compete to buy part of our national debt and make a profit on it by earning interest. The banks then sell some of those bonds to the Federal Reserve, at a profit. The Federal Reserve then buys them from the banks by opening its 'checkbook' writing bad, bogus, counterfeit checks which are drawn on an account that has nothing in it. The working class then pays to the IRS via taxation because the IRS is the collector in the ponzi scheme. The IRS, btw, being created in the same year as the Fed. There was a reason for that. lol. The IRS then turns our tax currency over to the Treasury so that the Treasury can pay the principal plus interest on that Treasury bond that the Federal Reserve bought from a bank with a check which is drawn on an account that has nothing in it.

And the process repeats over ad over and over. The reason they keep doing it over and over is because no politician wants the economy to tank on their watch. So they keep running the debt up by repeating the deficit spending (by both political parties) thus kicking the can down the road for the next generation.

It can't last forever, though. The dollar has been debased 98% since the whole ponzi scheme started back in 1913. It will crash. We're screwed. lol. So stock your pantry with what little bit of purchasing power you have left, as a consequence of both the hidden, regressive, inflation tax and the income tax, and quit worrying about it.

 

[william the wie]

Because of fracking, mostly, we are seeing productivity gains becoming deflationary. Whether monetizing the debt while exporting deflation is the right move is another thread entirely. Externally most of the world that can afford it have bigger entitlement problems than we do. That is causing major problems.

 

[Natural Citizen]

Because of fracking, mostly, we are seeing productivity gains becoming deflationary. Whether monetizing the debt while exporting deflation is the right move is another thread entirely. Externally most of the world that can afford it have bigger entitlement problems than we do. That is causing major problems.

I'm more worried about the fracking causing Yellowstone to pop off. The dollar and our economy is already toast. We're 21 trillion in debt and will likely be around 32 in ten years. That's not changing under either party because they both practice the same Keynesian monetary policy and they both keep adding to our debt and kicking it down the sidewalk for someone else to deal with in the next generation. Which they won't deal with it. They can't. Not without free markets.

 

[Toddsterpatriot]

... pay off the national debt:

They're not paying off the debt. They have no intention of doing so. They're monetizing it. To pay for deficit spending the Treasury borrows currency by issuing a bond. A bond is an IOU. It's a piece of paper with numbers printed on it that says loan me a trillion dollars today and I promise that over a ten year period I will pay you back that trillion dollars. Plus interest. But Treasury bonds happen to be our national debt. The Treasury then holds a bond auction. And the world's largest banks show up and compete to buy part of our national debt and make a profit on it by earning interest. The banks then sell some of those bonds to the Federal Reserve, at a profit. The Federal Reserve then buys them from the banks by opening its 'checkbook' writing bad, bogus, counterfeit checks which are drawn on an account that has nothing in it. The working class then pays to the IRS via taxation because the IRS is the collector in the ponzi scheme. The IRS, btw, being created in the same year as the Fed. There was a reason for that. lol. The IRS then turns our tax currency over to the Treasury so that the Treasury can pay the principal plus interest on that Treasury bond that the Federal Reserve bought from a bank with a check which is drawn on an account that has nothing in it.

And the process repeats over ad over and over. The reason they keep doing it over and over is because no politician wants the economy to tank on their watch. So they keep running the debt up by repeating the deficit spending (by both political parties) thus kicking the can down the road for the next generation.

It can't last forever, though. The dollar has been debased 98% since the whole ponzi scheme started back in 1913. It will crash. We're screwed. lol. So stock your pantry with what little bit of purchasing power you have left, as a consequence of both the hidden, regressive, inflation tax and the income tax, and quit worrying about it.

The IRS then turns our tax currency over to the Treasury so that the Treasury can pay the principal plus interest on that Treasury bond that the Federal Reserve bought from a bank

The Fed only owns about 12% of Treasury debt outstanding.
Doesn't look like the Treasury had a problem selling any new debt in the
3+ years since the Fed stopped adding to their balance sheet.