You're watching...
The battle over the national debt has liberals and libertarians hatching a scheme to control+alt+delete $1.6T from the national debt by eliminating th...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Does the government work for us and we work for the government.
Can the debt ceiling crisis be solved through the bitter politics of compromise.
-- -- political courage saved the day.
Tonight debt and compromise and the Federal Reserve.
The problem America is a simple one but the solution requires political coverage.
Since the presidency of Woodrow Wilson the federal government is always spent more money -- it has collected in taxes the additional money has been provided by borrowing.
-- the borrowed money has become do the government has simply borrowed more money.
Often at higher interest rates and use the newly borrowed money to pay back the lenders who came crawling.
Any high school student capable of understanding basic math knows that this simply cannot last.
At some point that -- is so great that the interest payments become unbearable.
That point is today.
Today the -- at the fabric of New York federal government knows is fourteen point three trillion dollars.
And the annual interest payments on that at about 440.
Billion dollars where does the government get that 440 billion.
It -- it the government is so addicted to debt.
That it has become the source for about 40% of all the bills the federal government pays.
In some months the feds actually borrow more money than they collect in taxes and as we know it saves nothing.
Every dollar -- can get its hands on it spends.
To make this even less transparent.
The government has created its own bank and authorize that -- to print cash and then land that printed cash to the government.
This is the functional equivalent of counterfeiting.
And anyone who thinks that this can continue without adverse consequences.
Is willfully ignorant of basic economics think about it.
It printing cash for -- prosperity that we'd all be rich.
Instead the government's now 100 year old failed experiment of printing cash.
Has burdened each person in America with a debt of over 44000.
Dollars.
In the last two years the government's bank that counterfeits all this cash Federal Reserve has done so to the tune of nearly one point six trillion.
This one point six trillion is included.
In the fourteen point three trillion national debt that the federal government is obligated to pay.
-- -- If the federal government.
Oh who's the Federal Reserve one point six trillion doesn't that mean that the government in a sense -- one point six trillion to itself.
This is an issue that the Fed will never want to confront.
Is the Federal Reserve a government institution.
Or is -- a private bank one way to burst that bubble and the answer that question would be for the federal government simply to cancel its obligations to the Federal Reserve.
In fact Texas Republican congressman Ron Paul suggested just last week.
That the federal government simply default on its payments to the Federal Reserve no one would lose an -- if -- all of the money to ourselves.
The government were to wipe out its depth of the Federal Reserve that investors might actually feel confident that the government could meet its legitimate obligations.
To legitimate lenders rather than to its own bank that counterfeits its own cash.
What with the Fed do if the government stopped paying for its counterfeit cash.
It would claim that it is a private bank it would deny that it is a government institution it would sue the federal government.
And ultimately the Supreme Court would decide if -- 100 year old printing press experiment is constitutional moral in the first place.
And then we will say.
That the emperor has had no clothes its.
Texas congressman -- goma to offered a flattering insight into Washington last week.
When he remarked that by freedom watch addressing this issue with conservatives and libertarians and congress.
The show has been strengthening the back bones of those on Capitol Hill who become wobbly.
Republicans must resist the fear mongering the Obama administration shields and it's -- and its attempts to cajole them into borrowing more money.
Some establishment GOP members are openly signaling their willingness for a compromise.
With the vague reference to the idea.
That there must be significant cuts in spending.
What they don't tell you.
Is that significant cuts means reductions in increases in spending.
Not cuts in actual spending it's a track don't be fooled.
History will judge the Republicans in congress by the actions they take in the next few weeks this may be the last best hope.
To rein in a monster federal government.
By forcing them to live within its means if Republicans muster the courage to do this if they stop the federal government from borrowing now.
The voters will reward them -- victory.
And the economy will reward all of us with prosperity.
On the other hand of the Republicans let the government continue its 100 year failing experiment.
There will be relegated to the dustbin of history which do you -- do.
From.
