Economic IQ test: If the national debt doesn’t matter, then why are we still paying federal income taxes?
by Mike Adams
Friday, November 23, 2012
The U.S. federal government is over $16.2 trillion in debt. But that doesn’t really matter, we’re told, because the Federal Reserve — a private banking monopoly — can create an unlimited quantity of dollars to keep buying up the U.S. debt. This is called “QE unlimited,” meaning unlimited quantitative easing (money creation).
On top of that, U.S. Treasury Secretary Timothy Geithner recently suggested we simply eliminate the debt ceiling altogether and launch America into INFINITE debt.
This program of fiscal suicide is already under way. The Federal Reserve announced a few weeks ago that it would begin buying up to $80 billion a month in U.S. debt, continuing indefinitely.
At the same time all this is going on, the government insists it needs to confiscate an ever-expanding portion of your income in order to increase “government revenue.” Current federal tax “revenues” (which is a warped word to use for taxes in the first place) are at roughly $2.4 trillion a year.
But hold on just a second… and here’s the IQ test, are you ready?
If the Federal Reserve can just create trillions of dollars a year in new money and hand it over to the federal government, then why are tax revenues needed at all?