Economic Pain Is Coming but Debt Should Be Repudiated!

We can’t prevent economic pain but we can refuse to let it continue.

As horrendous as the information from the Heritage Foundation is, it’s merely the tip of the fiscal iceberg. There are vast amounts of committed additional future spending not even illustrated in this disastrous graphic. The hidden debt not reflected in the trumpeted $18-trillion figure is beyond ten times as much.

federal debt graphic

[See also, “The National Debt Keeps Piling Up, But Government Boasts.”]

Americans have become immoral louts who spend, spend, spend with no intention of even thinking about ever paying it back. So much for our former life as a “Shining City on a Hill.” Now we’re a “Blackened Blast Crater of Immorality.”

That being said, while I haven’t had time to fully read this article yet, Murray Rothbard’s central argument seems correct: “Repudiating the National Debt.”

The public debt transaction, then, is very different from private debt. Instead of a low-time-preference creditor exchanging money for an IOU from a high-time-preference debtor, the government now receives money from creditors, both parties realizing that the money will be paid back not out of the pockets or the hides of the politicians and bureaucrats, but out of the looted wallets and purses of the hapless taxpayers, the subjects of the state. The government gets the money by tax-coercion; and the public creditors, far from being innocents, know full well that their proceeds will come out of that selfsame coercion. In short, public creditors are willing to hand over money to the government now in order to receive a share of tax loot in the future. This is the opposite of a free market, or a genuinely voluntary transaction. Both parties are immorally contracting to participate in the violation of the property rights of citizens in the future. Both parties, therefore, are making agreements about other people’s property, and both deserve the back of our hand. The public credit transaction is not a genuine contract that need be considered sacrosanct, any more than robbers parceling out their shares of loot in advance should be treated as some sort of sanctified contract.

What we have now is a corrupt system wherein corrupt globalists buy off politicians to undertake measures that require more debt—which is then handed to those same corrupt figures who benefit from the easy money, then they turn around with some of their additional profits and buy the bonds to secure an additional ongoing income stream.

I say repudiate the whole poisonous mess.