Let’s start with a little exercise, everyone, take a dollar bill (or any bill) out of your pocket. OK, on the side with the picture of the dead president, what does it say on the top? He says, “Federal Reserve Note.” At the bottom, it is signed by The United States Treasurer and the Secretary of the Treasury. What exactly do they need per note? According to Webster, a note is “a written promise to pay a sum of money or a written acknowledgment of a debt from which a promise to pay may be inferred.” In other words, your $5 bill is like a $5 government check. In other words, the $5 bill means that Uncle Sam owes you $5.
So now that you know the government owes you $5, go to the treasury and pick it up. Sounds pretty absurd, doesn’t it? Now calculate all the one, five, ten, twenty, and hundred dollar bills there are. Now also calculate the ones the bank is setting aside for you (lol) and of course the T-Bills and T-Notes and T-Bonds, yada yada yada. Add all of that up and that’s your national debt, that government has no way to pay for this except with more debt (you cash in your $1000.00 T-Bill and the government gives you $1000.00 in Federal Reserve Notes which just means You see, until the 1970s, the US was on the gold standard, which meant our federal reserve notes were worth a certain amount of gold, but President Tricky Dicky took us off the reserve notes now federal are backed by NOTHING, our economy is like Seinfield!
So why are people worried about the deficit? All that means is that the US government didn’t issue as many Federal Reserve Notes as it thought it would have to and more are being printed. BUT IT IS WORTH NOTHING. When we have a surplus, all it means is that the US government issued more Federal Reserve Notes than it thought it would need, you know, in which case, they wasted paper. The trees paid dearly for the Clinton surplus!
Last year my wife, Karen, father-in-law, Ken, and I visited The Money Factory, just north of Fort Worth TX. This is where they print the Federal Reserve Notes. It was amazing to see them print the five dollar bills per sheet. This operation runs 24/7 throughout the year, so your money is not only worthless, but also abundant. Since it’s plentiful and worthless, why not go out and get a bunch?