The Impossibility Of A Government Shutdown

Pub_2013_2013_The Rain God Small

The most popular and predictable political theater put on by Republicans, Democrats, and Independents (including sociokooks like Bernie Sanders) is a government shutdown. They do this knowing full well that it is impossible. Because the unknowing public will blame Republicans and reward Democrats, this morality play is absolutely irresistible to Democratic “strategists”.

 

The United States is a sovereign, sole-issuer of currency. The Congress can, and already has, issued massive amounts of money. This power is granted to Congress by the Constitution, is not restricted at all by the Constitution, and “money” is not defined in the Constitution. For a government shutdown to be possible, America would need for the government to be funded by a real economy. It is not so funded and has not been since Congress passed the Federal Reserve Act of 1913. This act created a phony economy in which the Federal Reserve, a private corporation, buys government debt and pays the Treasury with credits to its Federal Reserve bank accounts; all government agencies have accounts which receive credits when Congress “appropriates” money and lose credits when somebody cashes a check written by a government agency. No actual money is involved. To control interest rates, the Federal Reserve releases money into circulation and the Congress, via taxes, removes money from circulation. Fort Knox contains only $350 billion in gold just for show and the Treasury does not contain actual money, it contains Treasury IOUs. This phony economy, which ALL politicians since 1913 have been running as a shell game means that the government can be funded WITHOUT LIMIT and therefore that the government can make war without limit.

 

The levers that run this phony economy are so deeply tangled in the Constitution (Necessary And Proper Clause, distinction between “debts” and “payment for goods and services”) and in federal law (Treasury rules, Bureau of Printing and Engraving rules, “face value” of securities covered by the so-called Debt Ceiling), that it is impossible to stop or even shrink the funding of government operations.

Regardless of political affiliation, all endorsing audience members of this predictable government theater deserve the thunderous applause of economic traitors as they lead America into the fires of fiscal hell.

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