“We take in $3.1 trillion and we spend $3.7 trillion and thats (sic) $600 billion dollar deficit at the rate of $50 billion a month our government is printing money and it’s degrading the paychecks and the living standard of every single person in America and its the cause of so much frustration, anger and confusion.”
I am grateful to Mr. Wynn for being so candid and honest about this fundamental truth that is largely hidden from public awareness – when more “money” is injected into the money supply through federal government “borrowing” from the federal reserve to “pay” for spending on bloated bureaucracies, bailouts, etc., that can’t be paid for from the tax revenue that the government takes in (this is the “printing money” concept described by Mr. Wynn), the value of the “money” in the pockets and paychecks of the American people (this is the “living standard” concept described by Mr. Wynn) diminishes and causes “frustration, anger and confusion.“
The old saying “There is no such thing as a free lunch” is applicable here. Think about it this way – If you make $4,000.00 a month, your necessary expenses are $4,000.00 per month, you have zero savings and in December you decide you want to buy $1,000.00 worth of Christmas presents, where will that money come from? If you can’t earn any more money because you are already working 60 hours per week and you won’t stop yourself from buying the presents because you refuse to accept you should not spend beyond what you bring in and no one will give it to you as a gift and if you won’t steal the money because you are not a thief, then the only other alternative is to borrow the money, which actually only compounds your problems even further because then an additional burden of debt is added to your existing difficulties, not to mention figuring out how you will pay the interest on your new debt when you have no extra money to pay the debt or the interest on the debt.
But in the case of the partnership between the federal government and the Federal Reserve, “borrowing the money” means effectively printing more Federal Reserve Notes “out of thin air” and “lending” those Federal Reserve Notes into the economy and to the federal government in order for the federal government to pay for the expenditures beyond what the government takes in from tax revenues. The problem for the American people, though, is that every time the federal government or the private sector borrows more from the federal reserve, the value of the “money” in the existing money supply (including what is in your pocket or your paycheck) is reduced.
You may think that this process does not affect you but it does. Compare what you paid for a postage stamp when you were a kid to what your children have to pay now. Compare what you paid for a candy bar when you were a kid to what your children have to pay now. Compare what you were paid at your first teenage job to what your teenage children are paid now. Compare what you paid for your first new car to what your children have to pay now. Compare what you paid for college tuition to what your children have to pay now. Compare what you paid for your first house to what your children have to pay now. You get the idea.
G. Edward Griffin masterfully describes not only how this process works but how devastating the process is to the economic well-being of the American people.
Mr. Griffin’s presentation is here:
I would also encourage you to visit Mr. Griffin’s website and check out his remarkable book:
Mr. Bill Still has also produced a great deal of information about monetary systems in general and the Federal Reserve in particular:
The link to the Steve Wynn interview here (“printing money” remark at 1:10 minute mark):
and here (“printing money” remark at 2:10 minute mark):
The more you familiar you become with the mechanisms of the Federal Reserve “money printing” system, the more you will understand how deceitful and harmful the federal income tax system is and why so many lies and secrecy surround the federal reserve system and the federal income tax system, from inception right through to today.