Debt Limits are Illegal

 

Fourteenth Amendment to the United States Constitution

SECTION 4.

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

When the Congress passes spending bills it not only authorizes the spending but the borrowing of money to accomplish the necessary spending if necessary. For the President not to spend the money as Congress has demanded by law is to fail to uphold his oath of office.

If Congress then passes a law limiting spending with a Debt limit, it has passed a law that will not meet the muster of Constitutionality.  If Congress does not raise the limit or pass a new law that removes the original requirement to spend, the President is required by Law to create enough funding to meet the law. The Debt limit becomes null & void.         

Government moves the Economy

There are two kinds of needs. One involves individual consumption and  business productive capacity.  These needs are met out of earnings and borrowing.  They will inevitable create a bubble if they exceed the capacity to repay what is borrowed.

The other kind of need is Community.  That includes infrastructure and general welfare expenditures among others.  If these needs are met by interest bearing debt the result will also be the creation a bubble when the interest on the debt is an excessive component of public spending. 

The difference between Government  and the private component of the economy is the a Sovereign Government with a Sovereign currency has the legal capacity to set the interest it pays on its debt at zero if Congress wishes to do so.  The private sector and non-sovereign States cannot do this.  

The Federal Reserve System has shown this to be true under the Quantitative Easing programs that it has used in this Great Recession.  Similar methods were used during World War II to finance the greatest debt to GDP ratio in the History of the Nation.

This method does not become problematic until there is a shortage of Labor or productive capacity or input material. Government first needs to maintain a safety net floor to prevent extreme poverty and spend on protecting the Nation  It then must build a modern infrastructure and education system limited only by the capacity to provide the labor, production capacity and available raw materials. There is no limit on the interest free money it can create.    

Growing Money for everything

Furnishing food for everyone in the world is already technologically possible.   It would only take a small  % of the available labor to accomplish that. The problem is distribution.  If the goal of the distributors is to maximize profit, then many people will be left by the wayside.  


A great many people don't have  money to buy on the market.  They can't get money by working if there is no work available.  They can't create local growing with their personal labor without the money to sustain their labor to harvest.  So the problem is having money to create local distribution of both food and labor. 


So the solution is two fold.  The first involves growing money.  Every Sovereign Nation has the power to create money, and bypass International Debt. Every Nation has the power to create an effective tax system that will make their money valuable to pay taxes.  A Sovereign Nation can create a low or no-interest loan program with Government grown money to create local production of the essentials of life.


The second step is to use the home grown money to build home grown infrastructure and local distribution systems, not only for food but for clothes and shelter and  teaching basic skills.  


The biggest fault in the modern world is the belief that money only comes from Banks and must cost interest that the poor person cannot pay even if the banker were willing to loan.  The truth is that money is the right of Sovereign nations to create for themselves and distribute that money virtually free of charge into projects that create independence of the people to sustain themselves without being wage-slaves to the Corporate Masters of the World.


Of course none of this is new. It is in fact becoming a world movement of DIY greening of a sustainable world.  It is difficult in many places because the only money resource is charity and that is simply a very limited supply of change.  


The key comes with the understanding that there is always enough money available to the Nation that understand that it is the creator of its own currency.  It does not have to sell out its people to the Money-Changers of the World.  If we learn that money without interest is an act of legal will, we will also learn that it is the hammer that breaks the chain of greed.  There will be enough money to pay for the food.