Unfortunately the last weeks the United States Government did not begin to default and lose its credit rating. Quite the opposite, the suited brutes of Washington raised the debt ceiling, reopened the government and saved us all from Armageddon (if you listen to the ranting’s of the media). Well at least until January when this whole process must be repeated once again.
However, this whole episode made me ponder the very notion of a national debt. Why do people continue to loan money to an entity that is roughly 850% in debt with absolutely no indication of becoming financially solvent in the foreseeable future? Would you loan money to a business that had such a high debt to income ratio?
Libertarian class analysis holds, like Marxism, that there are two classes. However, rather than there being a Marxian proletariat oppressed by the bourgeoisie there is the ruling class and the ruled class. The ruling class rules with force not for the sake of the “greater good”, (a misleading impossibility if there ever was one) but for the enrichment of themselves and their cronies and the promotion of their own self-interest.
It is clear why people continue to loan money to the entity known as the United States Government; government is not a normal business. People are tempted to look at the government and say that it has not “made” a profit for over a decade. But that is incorrect. Government is the most profitable enterprise one can engage in at least for some people.
It is because Government is profitable that people are willing to loan it money. But we have ignored the question of where does this profit originate from. Quite simply, governmental profit is all the product of extortion and theft. Unlike Wal-Mart or CVS the Government requires you to utilize their services. Failure to pay for these mandatory services results in fines and if you persist in resisting their extortion you will be kidnapped and thrown in jail.
What investor could go wrong knowing that the entity in which they invest has 300 million people too steal from to ensure their return is guaranteed? There is no worry that the Government will have a bad quarter or that sales will drop.People often fret about the national debt which currently stands at $17 trillion. But I say there is no need to fret. I, for one, do not feel indebted to bondholders. I never agreed to repay their money. The ruling class has recklessly spent and borrowed to enrich themselves and fund their widespread oppression and theft. Bondholders have no greater claim to my, or anyone else’s, money than a person who lends money to organized crime does to the money of the businesses extorted by the mobsters.
It is important to avoid falling into Orwellian double-speak. There is no national debt, only the debt the ruling class has accumulated that they force us to pay for. It is a shame that the bond holders did not get their just desserts but perhaps justice will be done and we may have a default in January.