Performance goes up measurably when one is well rested.
Most people fail to fully comprehend the fact that "budget deficit" concerns were abolished by Richard M. Nixon in 1971. Commerce Secy Pete Peterson played a role in this planning/scheming at Camp David. They cut off France and FORCED foreign holders of US Dollars (which were flowing into Vietnam) to buy "worthless paper" US Securities instead of being allowed to buy US gold.
The "Debt Ceiling" was a function of the paradigm of the old Fixed Exchange Rate standard re Gold --- a rate...
The "Debt Ceiling" was a function of the paradigm of the old Fixed Exchange Rate standard re Gold --- a rate "fixed" by political decree ---- which was merely a harsh meat cleaver Govt Regulation on banking and on Govt itself. (none of the new financial wizardry, not even some non-harmful stuff, could exist under the gold std).
The Gold Std forced Govt to borrow gold from banks, just for storage. It would have made the Civil War impossible, if held strictly and no Greenbacks issued by Lincoln. World War 2 victory and the Cold War could not have been fought, and most of the 20th century of the American economy and global economic dominance would not have happened. The USSR and Nazi Germany may have succeeded.
FDR abolished the domestic aspect of Fixed Exchange 80 years ago.
Nixon abolished that for FOREX (foreign monetary exchange) 40 years ago.
Nixon faced a foreign run on gold, so he "closed the gold window" at Treasury. This way he could continue to fight the Cold War, Vietnam War, without concerns about "deficit spending". (Otherwise, Nixon would have had to increase taxes to pay for the war. That would have been politically unfeasible. Or he would have had to end the war.)
Nixon abolished all justifications for the "debt ceiling", FOREVER.
It's CONGRESS that currently has a Mandate that requires Treasury to "borrow" from those "Zombie" banks that need to get handouts from Uncle Sam and loans from Uncle Ben (Bernanke), just to *pretend* to be solvent, after record "losses" they created, following years of record profits and bonuses on phony accounting fraud.
CONGRESS mandates that TBTF banks (Primary Dealers) *must* "loan" money to Uncle Sam (banks strongly desire to hold T-Bills) and CONGRESS mandates that Tsy *must* issue T-Bills at auction for Zombie banks to buy... on credit if they choose. Yet Treasury does not *operationally* need to "borrow" or take "loans" in order to spend.
Yes, it's true. Banks are allowed to BORROW money from Uncle Sam (Fed), in order to LEND money to Uncle Sam (Treasury). Does this make sense? Yep, as institutionalized corporate welfare.
If CONGRESS really wanted to reduce the Debt --- which is everyone's savings in US Dollars (not foreign currency) stored at the Fed in T-Bill accounts --- CONGRESS could change their own rules to abolish the issuance of new T-Bills, and de-link that issuance from so-called Deficit Spending which ADDS Net Financial Assets (net savings) to the US economy. Or else Congress could simply change their own Laws to allow the Treasury to borrow directly from the Fed, instead of borrowing from Zombie banks.
Govt "Debt" (US securities) sold only to the Fed would be a wash, since the Fed returns 100% of net profits to Treasury. This is about the same as a corporate conglomerate having one department or division "borrow" from another, like the IT dept borrowing from Marketing, or Chevrolet borrowing from Cadillac. That is an internal management bookkeeping function.
Conclusion: The "National Debt" is not a "crisis". It's literally OUR SAVINGS. Do we really want Uncle Sam to tax away 25% or 50% or 100% of our net savings, destroy our economy, so Uncle Sam's spreadsheet held on computers inside the Fed has more black ink instead of red ink? What will we do with ZERO net financial assets (dollars)? Save in Yuan? Save in Pesos? What will we do without Dollars? Barter instead of commerce? Pay for your cable and gasoline with chickens and your vegetable garden?
T-securities expire at the end of every "term" -- 3 mo, 6 mo, 12 mo, 10 yr, etc. When that happens, US T-securities literally get rolled back into US Dollars, automatically. At that moment, that "debt" is "paid off". It's like an electronic balance transfer between checking and savings. Who doesn't have online banking these days?
But if it was a crisis, as we idiotically believe it to be, Congress could easily change their own rules to abolish this "debt" by simply STOP issuing those instruments for savers to hold. Be careful. If YOU have a retirement account or savings account at the bank, YOU are guilty of owning "national debt" as part of your portfolio. Are you willing to do your part for "patriotism" by removing your savings from the banking system and destroying it? I didn't think so.
To the White House:
Letter to Obama White House:
Here's one way to get rid of the Debt.
a) Congress changes rules requiring the Treasury to issue T-Bills, in relation to deficit spending.
b) Congress tells the Treasury to stop issuing T-Bills.
c) Existing T-Bills expire. That is, the account balances in US Securities accounts @ the Fed rolls over back to the form of US Dollars in Reserves accounts @ the Fed.
d) Entities that WANT to purchase new T-securities will be told "No." They...
d) Entities that WANT to purchase new T-securities will be told "No." They will be out of luck. Their surplus US Dollars will have to be parked at the Fed, as Reserves (checking) where these Dollars will no longer constitute "Govt Debt".
e) Month-by-month, the National Debt will melt away to nothing.
f) For monetary policy, hitting interest rate *targets*, the Fed will have to adjust policies by paying more interest on Reserves.
f2) When interest is paid by the Fed instead of Treasury, that does not count as a "Fiscal" issue regarding Congress or Deficits.
g) Problem solved. Go have a drink.
a2) Alternately, Congress permits the Treasury to issue T-Bills and sell those directly to the Fed, which pays all net profits back to Treasury, instead of selling T-bills to middleman Primary Dealers.
Note, Primary Dealers are those "zombie" banks currently kept in life support by the Fed's various rescue packages, after TARP. Currently, PD banks thrive by borrowing money from the Govt (Fed) to loan money to the Govt (Treasury).
Explain that how? How is Uncle Sam "in debt" to banks that must borrow from Uncle Sam just to stay alive? (Rhetorical question)
a3) This is same answer as "Trillion Dollar Coin" but without all the flash and mystery. Just have Congress ELIMINATE it's own stupid laws and rules.
Nixon abolished the Gold/FOREX fixed exchange 40 years ago. Nixon set it up so Federal spending is no longer reliant on Federal taxes, and he eliminated all issues with "budget deficits" then and now and forever.
Taking a break seems counter productive, but it isn't... the more they DO the more they SPEND, that's all they know how to do. I say take more breaks... in fact take a few years off!
Fix the budget but reducing their pay and we will have enough money. MAKE THEM PAY FOR THEIR CHILDREN EDUGATION INSTEAD OF FREE. OUR TAXES PAY FOR THAT. DO THE RIGHT THING FOR US THAT PAY YOU TO DO A JOB. You can be replaced.
If we performed like that, in our jobs, we'd be FIRED!
And they can take a tax payer trip around the world on our money when we a working our butts off to pay the wages.
I'm disabled but work in some capacity even if it's just to volunteer in my community to make it better! I've had Systemic Lupus and other physical illnesses disfor over 17 yrs and have Bi polar disorder. If. I make it my business to do my part and have worked my whole life whenever possible proudly what is the reason for Congress and the House not to ? Be real! Do your jobs! Do them with pride! Be good examples! At least do what you would expect any American Worker to do! !!! Help fix the problem! Be part of the solution !
We need to fire our government.
Let's stand up folks, they are supose to listen to us.
Let's do it folks, they are supose to listen to us, love you folks.