Do you know about the taxpayer-funded “gifts” we give to foreign banks in a massive money redistribution scheme?
Every day, day-after-day, we give money away to foreign banks who then use it to prop up their failing socialist financial institutions.
Brussels is in charge. We outsource taxpayer money to Brussels.
The way the scam works is this: Foreign banks on Wall Street borrow from money market funds at a teeny, tiny 3-6 basis points and then immediately go to the Feds who pay them 25 basis points for the same monies. It’s called an “IOER payment for excess reserves.” It’s a UN-approved tax on American taxpayers who are on the hook for this.
This goes on every day and the Federal Reserve, a private, unelected bunch of bureaucrats, are in charge. It has no connection to actual reality and to the real market.
One trillion dollars of it comes from the common folk who get 3-6 basis points in this redistribution of U.S. monies to foreigners.
The money is being passed from the productive to the non-productive, from savers to gamblers. Real market prices are replaced by Mafia-style casino operators.
CBN’s Steven Moore said that for each one percentage point rise in rates, the U.S. deficit will rise by more than $1 trillion over 10 years. A 300 basis point rise in rates – nothing more than a return to normalcy – would mean about $5 trillion in federal deficits.
“If that happens, the debt servicing costs grow astronomically and interest payments would become the biggest expense item in the budget. We start to pay more and more taxes just to finance past borrowing,” says Moore, a chief economist at the Heritage Foundation.
We will be Detroit.
Maybe this debt bubble won’t burst.
This is taxation without representation but we don’t have the fire of our forefathers and we don’t seem to care.
Before Mr. Obama leaves office the debt will be at about $20 trillion. He didn’t start it and he isn’t alone in driving up the debt, he’s just been the most accomplished and rabid spender we’ve had to date.
Anyone who thinks this can go on is a grand optimist.