Governmental Loans: A quick guide to.
Student Loan debt has been all the rage as of late, as the debt is growing to over a trillion dollars, and the government wants their money back!!! (we’ll get to why that is the most ridiculous statement, among many ridiculous statements the government has ever made.) But add also to the trillion-dollar student debt, and also look at any of the Fannie or Freddie Mae loans the government makes for first time home buyers.
Now first and foremost, we must look at the facts:
1. The government is, depending on which numbers you believe, is at least 36 trillion dollars in debt. So, before it HAS any of its OWN money, it must somehow come up with 36 big ones.
2. I am not in debt. Therefore, since I have a surplus, with that surplus I can indeed LEND it to other people. If I was in debt, and therefore had no money, how would it be possible for me to give other money to other people?
3. The government has no money.
4. The government, even if it sells all it has, creates some money, collects a bunch of taxes, still does not have a surplus, therefore, it cannot give anybody anything.
5. Nothing from nothing, means nothing.
So, what we will be analyzing is what is the government really doing if it is in fact “loaning” money to college students and first time home buyers, and how if this was done by you or me would be completely illegal, and, or, be filled with not only moral risk, but financial risk as well, both of which would require us to act in responsible manners, if and when our actions brought us to lose all we had. I think it sucks if I am $200 in debt, and most people around me know it. I think constantly about where I made a mistake, how not to do it again, and what I can do to not go in debt again. But what does the fucking “government” (i hate this word, its supposed to call to mind some sort of supreme ruling class, some holier than thou body of people, this mass collective meant to “protect” us, but in my mind all it recalls is indian killers, nigger killers, prison-building bullies, thieves, liars, hypocrites, and pieces of shit.) do, it goes FURTHER IN TO DEBT, it acts as though everything is cool, super cool even, and they do not think or modify their behavior one bit. And no even thinks twice about how they act, in fact, they welcome it, they applaud it, they think it is GENIUS!
So what is it that the government is doing when it loans money to people it does not have? (The banks operate in the exact same manner, on a principle called fractional reserve banking. I cannot define this banking system of fraud better than Murray Rothbard, so please read his insight, here.) Well, the government does exactly what the banks do, they take a risk. But they are only allowed to take a risk because they are “allowed” to make money appear out of thin air. They are allowed to say, hey, we are in debt (minimally) 36 trillion dollars, but if you need 40,000$ for school, just sign this note, and at the end of school pay us back, with interest (on money that they never had in the first place, but money they will have, plus more from interest after you pay it back.) So far I hope you are following. They are signing a piece of paper, giving it to the school, the school then gives you a check, which from that piece of paper equates into roughly 5,000$ per semester for you. You put the check in your bank, pay your tuition, buy your books, pay your dorm, buy food, etc, etc. You THINK it is real money, because you spend it like real money, but it can’t be real money. It is only REAL money, like I said earlier, once you go out, get a job, work hard, earn money, then pay it back to the government.
But what the government did was a risk. The same as what a bank does, through fractional reserve banking when it lends money to its customers that it does not have. If the bank has a liquidity of assets totalling 5 million dollars, it cannot lend excess of that money in a free banking universe. But in a fractional reserve banking universe (fraud), it is allowed to loan 50 million dollars out based on the fact that it has 5 million dollars. So it is allowed to counterfeit 45 million dollars credit, give it to other people, with the EXPECTATION, that they are going to pay it back. But they never had it in the first place? What happens if you do not pay back the imaginary money they gave you? Didnt the bank take a risk in giving you the imaginary money in the first place? Didn’t the government, who is already 36 trillion dollars in debt in the first place, and OBVIOUSLY not very good at money management, make a risk in lending another trillion dollars to a bunch of 18 year olds who have never had that kind of money in their life, or to low-income people who want a house? I mean, if they go into such a debt, shouldn’t someone be checking the credentials of these idiots who keep offering loans?
Maybe the government and banks should say: ‘Hey, we are really bad with money, obviously, but the only reason we keep lending out money we don;t have to you all, is because you fucking moronic sheep keep giving us back money that never existed!” I guess that would be some form of responsibility?
But the government says they do all this, and the banks do all this for such reasons as equal opportunity, like, “who else is going to give these kids a chance to get an education;” “Who else is going to take a chance on these poor people who just want a slice of the amerikkkan dream and want to own their own home?”; “Who else is going to give these small businesses a chance to open their own businesses and help amerikkka prosper once again?”; “We are just doing it for the kids!”
And yet, the key word throughout all of that is “a chance,” which implies risk. Hey, if you make a stupid fucking loan to your broke ass drug addict mis-money managing brother-in-law, whose fault is it when he don’t pay you back? I mean sure, he deserved an equal chance at making it big and all, but you should have looked long and hard at the odds before you gave him your hard-earned dough. And that loan you made was when you actually HAD the money to give him. Imagine how much easier it would have been if you had just printed up a bunch of money on your computer, handed him 30000$, and then he didn’t pay you back. Oh well, it didn’t cost you anything. But imagine how sweet it would have been if he gave you back 37,500$ two years later. Whowee! Its like, why don’t you do that more often? So you try it again, and again, and again, and soon enough, you are a rich man. A counterfeiter, but a rich man.
It is easy to see how if you started getting your fake money paid back with real money, why you would get mad if someone didn’t pay. Because then you EXPECTED THEM TO PAY. Who are these mother fuckers not to pay you back with real money the fake money you lent them? Who are these slaves, these sheep to question what is real and what isn’t? They don’t make the fucking rules. Money isn;t real, its faith. once faith stops, then so does the money. Just believe and it’ll be all good. Its once you start questioning everything when it all falls apart. Don;t be such a pessimist and wreck it all for everybody man.
And then imagine if you set up all the courts and the police to track down guys who didn’t pay you back your fake money with real money? Then it all seems real. When the whole world becomes one big lie, enforcing illusions, illusions so important such as money, then how is it possible to tell whats real? Truth then becomes a conspiracy. Lies become reality.
How is it possible to tell what’s real? What is it about what people learn about money, that it makes them think it is acceptable to receive a loan from blatant liars and criminals (do these people not understand that the Big Bankers and the government laughs at them, mocks and derides them behind their backs, in front of them, at every chance they get)? How would it be possible for people to learn that lies are the truth? Oh yeah, government schools. Where you learn that counterfeiting is illegal for individuals to do it, but not if governments do it. Where you learn that banks are your friends. Where you learn that amerikka is free. Where you learn that war is peace. Where you learn that you HAVE TO ATTEND THE BRAINWASHING ACADEMY, or your parents will be locked up, and where you will learn the skills that will make you independent (learn to be dependent to be independent?). Where you learn about the “healthy” food pyramid. Where you learn that it is wrong to lie.
Where you learn it is wrong to lie, unless you are the government.
Don’t take loans from the government. They can’t give you anything because they don’t have anything. Don’t give them ANYTHING, because then they will have something. Talk to any strangers, just as long as they do not work for the government.