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View Diary: Deficit reduction from Minimum wage ?? (11 comments)

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  •  The dirty secret about the deficit is that it is (0+ / 0-)

    the trough at which the unearned income crowd feed.

    Earned income is taxed. The more people earn, the more flows back to the Treasury to be sent out again.
    What the unearned income crowd prefer is that they lend dollars to the Treasury and then collect a premium for doing nothing at all.

    That the defict is bad is a half truth. The unearned income crowd aren't happy at present because dividends paid out aren't high enough. Having convinced themselves that for everything that goes up, something else comes down and vice versa, the unearned income crowd believe that if there are fewer dollars available to the Treasury to borrow, the dividend will have to be increased. What they are forgetting is that currency is worthless. Not only that, but if the Treasury needs more, it just prints it. The Fed giving banks first dibs makes it look like the bank originates it, but it doesn't.

    Why this round-about? Tradition. Ever since the Dutch got hold of the gold from the Americas, the bankers have tried to take charge of credit and debit. Having that background in New Amsterdam, it is telling that the founders located the issuance of currency with the Congress.

    by hannah on Fri Feb 21, 2014 at 10:53:05 AM PST

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