Tuesday, November 8, 2016

Can stability destabilize?

Governments cannot create but merely redirect. 

When the government spends, the money has to come from somewhere.

If the government doesn't have a surplus, then it must come from taxes.

If taxes don't go up, then it must come from increased borrowing.

If lenders won't lend, then it must come from the printing press...

 each additional dollar printed diminishes the value of those already in circulation.

Something cannot be effortlessly created from nothing.

Peter Schiff

If a nation prints more money, 
like cutting a large pizza into 16 slices instead of 8,
is each slice worth less?

What if the pizza shrinks while the number of slices rise?

By a continuing process of inflation,
 governments can confiscate secretly and unobserved…the wealth of their citizens.

John Maynard Keynes
Advocate of fiscal and monetary measures to manage economic highs and lows

For imposing Taxes on us without our Consent

The unanimous Declaration of the thirteen united States of America

Find out just what any people will quietly submit to 
and you have the exact measure of the injustice and wrong 
which will be imposed on them.

Frederick Douglass

Ponzi finance units must increase outstanding debt 
in order to meet financial obligations.

... either financing costs rise, or income comes in below expectations,
leading to defaults on payment commitments.

Hyman Minsky

Have many betrayed their children’s future,
by indenturing offspring to finance a more pleasant present?

…the earth belongs to each of these generations during its course,
fully and in its own right.

The second generation receives it clear
of the debts and incumbrances of the first, the third of the second, and so on. 

For if the first could charge it with a debt,
then the earth would belong to the dead and not to the living generation. 

Then, no generation can contract debts greater than may be paid
during the course of its own existence.

Thomas Jefferson to James Madison