Does Congress really not have the power to pass a budget for 12 months?

Congress isn’t really the hold up here. The American citizens have finally figured out that the carte blanche congressional mentality has repercussions for us all… and some of them… particularly the Tea Party… are pushing for change and clamping down the thumbscrews.

The federal government has basically two ways of garnering funds: by collecting taxes… by selling government bonds[IOUs].

Taxation is efficient… because there is no interest accrued. It isn’t popular though for obvious reasons… no one likes being handed a bill to pay.

The issuance of Treasury bonds is much more popular because due to the sleight of hand… Americans are sometimes duped into thinking it is free cash. On its face… treasury bonds are less efficient because the buyer is assured a return of their investment plus interest earned. So the issuance of treasury bills gives the government less bang for the buck. In a sense… when bonds are bought by other nations or private entities… this form of fund collection isn’t so egregious compared to what typically happens… bonds being bought by the Federal Reserve Bank. America is straddled to the interest debt… but it really doesn’t affect us. When bonds are bought by the Federal Reserve… due to the fiat nature of the Federal Reserve Note… and intensified by the fractional reserve banking permittance… everyone’s purchasing power is diminished. As the purchasing power of the Federal Reserve Note wanes… those other nations who buy federal Treasury bonds become more and more reluctant to continue doing so… because their returns are paid in Federal Reserve Notes… and they are learning that the whole thing is a wash… they gain nothing by buying the Treasury bonds. This being the case… our government is forced to sell them to the Federal Reserve.. [due to a provision in the Federal Reserve Act… the Fed Reserve cannot refuse to purchase Treasury bonds… not that they wouldn’t want to]. This causes an exponential rise in inflation… seen more and more in the costs of foodstuffs and oil… the price of precious metals…etc.

Myopic Americans… for the most part… fail to make the connection between their diminished purchasing power and the fact that the federal government just ordered all of those airport body scanners with which to harass them… or any of the myriad of bureaucratic expenditures…and so many of them scoff the “teabaggers” for wanting this to end.

Our government really… really likes the carte blanche system. The crony capitalist wealthpool would all but dry up without it. In an effort to maintain the system of easy living for the plutocratic elite… they offer the up peons in the federal system eg… soldiers… postal workers… etc… at the alter of budget sacrifice… instead of the very questionable expenditures such as corporate subsidies… foreign aid to first world countries like Israel… and huge war contracts. We’re left with the dilemma of choosing between protecting our money’s value or watching our neighbors in the low level government positions go without pay.

The false choice irks me. The fact that so few Americans see through this ploy irks me. The current symbiotic relationship between our government and the Federal Reserve Bank is untenable. The vast array of federal government bureaucracy is untenable. The system is headed for collapse… the only question is if we realize it before our entire economy is wiped out.

What can we do to ameliorate the problem? We can start by assuring corporations like google… goldman sachs… general electric stop receiving subsidies and start paying their share of taxes. GE got off Scot free this past year paying zero taxes… but GE’s media outlets love them some President Obama administration. We can impose tariffs to protect our exports and to raise funding for essential federal programs. We can glean the essential programs from the multitude of unnecessary federal bureaucracies.

Or we can sit back while the economy crumbles watching political theater from the peanut gallery