
Did Washington learn anything from the GSA fiasco? Only a month after the scandal, government bureaucrats seem to be at it again: showing no financial responsibility on taxpayer dime. Destination: Maui. Aloha! Breitbart reports:
Judges from the Ninth Circuit Court of Appeals, federal district and bankruptcy courts in nine Western states and two Pacific island territories, along with lawyers practicing in those courts, and court staff, will gather at the luxurious Hyatt Regency Maui Resort and Spa from August 13 – 16, 2012 in what looks like a less than valiant attempt to ensure American justice is being served...at a cost to taxpayers of approximately one million dollars.
While this is frustrating, a positive side of this story is the fact that the trip was caught before the fact rather than after. I was watching the news regarding the story this morning and they attributed these sort of extravagant expenditures made by our federal government as as product of “Congressional oversight.” We are trillions of dollars in debt and we are STILL relying on the excuse of simple oversight? These sort of “business trips” should be on the tails of a successful year, thus something earned and worked towards. With a government that is constantly spending more than it is bringing in, I would hardly consider that grounds for celebration.
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It’s just appalling that folks continue to believe that the Federal Government collects taxes to pay for its expenditures. This has never been the case even under the gold standard. Deficit spending, with the exception of a few budget tricks to generate “on paper only” surpluses, has been the source for paying America’s bills.
This is particularly true since August 15, 1971, when Nixon defaulted on convertibility and closed the gold window. Thereafter, America, as an autonomous fiat currency issuer would never need revenue to spend. Afterall it created all the currency in the first place.
The Federal Government had to issue the currency before it could tax and borrow. From where else would the dollars come? Since the Federal Government would be the sole issuer of the dollar, it could never be insolvent in its own currency. Moreover, the Federal Government would use tax and interest rate policy as tools to stabilize aggregate demand not to raise revenue.
It is cynically subversive to continue the lie that our tax dollars pay for roads, salaries, and other services. http://www.moslereconomics.com and other of, “The Seven Deadly Innocent Frauds of Economic Policy.”