Deficit spending is the candy (almost) everyone wants

Trump's idea about renegotiating the national debt has caused me to realize that only a tiny minority of Americans want to "End the Fed." Basically, the arguments being used for why Trump's idea is a good one come down to this argument:

The Federal Reserve should be abolished.

I don't disagree with that. But, it would not take renegotiating the national debt to do that. All it would take is a new law stating that the Federal Reserve would be abolished and the current debt would be paid beforehand. That aspect of it would be painless.

Why would the US government do that? To return to a constitutional currency is the answer that many Constitutionalists give. I understand that.

However, a constitutional currency would be the end of most deficit spending. Who would want that? Consider the parties involved...

1. Career politicians

They generally live off of deficit spending (literally and figuratively), do you think they're going to end it on their own volition?

2. Lobbyists

They need deficit spending like they need air.

3. The military/industrial complex

It lives off of deficit spending.

4. The masses

They are increasingly dependent on deficit spending.

Who is pushing for a constitutional currency and essentially the end of deficit spending?

A tiny minority of Constitutionalists who are irrelevant in the big picture.

Deficit spending is the candy (almost) everyone wants, deal with it.

I don't like it personally but we have to face reality.

a reply to: Profusion

Why can't they face the reality that it's not sustainable?

At some point this derivatives, deficit and debt powered shell game is going to fall apart. It's inevitable, passing the buck to the next generation is irresponsible.

It will take care of itself. Fiat deficit spending always does itself in. You will certainly live to see it happen. Its too late now. This fiat will be replaced by another fiat which will be cashless, so that all will be taxed. Even those who participate in illegal activity will have to fly within the radar and be taxed. Thats what the plan is. Topple this system and replace it with another that receives more revenue for the overlords

You can point out that such a move means that we ALL have to do with less at all levels, and you get all kinds of whining about how everyone else should do without, but leave MINE alone.

No one wants to hear.

Honestly, at this point, I think we have to drive off the cliff like Detroit in order to get to the point where everyone realizes that, yes, we WILL have to make do. And instead of making do with just less, we'll have to simply go without and that means there will be people starving in the streets which is just sad.

a reply to: Profusion

You forgot a 5th group of people. Those with an understanding of economics who know that deficit spending can be (and in fact generally is) good for the economy.

a reply to: visitedbythem

Fiat monetary systems are the standard across the world, how often have they failed?

originally posted by: ScepticScot
a reply to: visitedbythem

Fiat monetary systems are the standard across the world, how often have they failed?

Look more than 200 years back, and 100% of the time.

The latest version isn't far out from collapse, they put fresh makeup on that pig a century ago, but once they reached a point where they had to drop the interest to 0% from the fed to get banks to lend at a low enough interest rate to keep people borrowing, it became unsustainable and irrecoverable.

It will be replaced with something more easily/heavily taxed soon. My only hope is that it all goes south in the process and the general population learns once again not to trust banksters.

a reply to: lordcomac

So no recent examples then? I guess what I am asking for is any evidence the Fiat currencies fail by virtue of being Fiat currencies as has been stated above.
A significant part of the economic problems facing the developed economies is not that we have a Fiat money system but that our policy makers too often act like we don't.

originally posted by: Profusion
All it would take is a new law stating that the Federal Reserve would be abolished and the current debt would be paid beforehand. That aspect of it would be painless.

Where do you come up with the $19 trillion or so?