Deficits and Debts

The United States dollar is backed by a debt system created by the banking cartel known as the Federal Reserve. The Federal Reserve is printing money on a daily basis, and then congress spends beyond that. The only way to eliminate the debt from being passed on to our children and grandchildren is to go back on the gold standard. Under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. (Alan Greenspan "Gold and Economic Freedom" CUI 96)
The government initiates a credit con game, as it borrows money from the producers, which is to be re-paid with money it will borrow from you the day after tomorrow, and so on. This is known as deficit spending, and is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods, but that money is not backed by any goods, it is not backed by gold, and it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid to you (in the form of taxes) out of your future production. The United States dollar