Fairydust Funds

 

Fairy Dust Fund$

and other Fun Fact$

“A Billion here, a Billion there; after a while you’re talking about real money.”

(Illinois Senator Everett Dirksen 1886-1969)

Today there appeared in our bank account two deposits of $600 each. And, yes, that’s a total of $1,200 for which we did not ask and could certainly have lived comfortably without. Nobody went to the bank with twelve $100 bills to deposit. No, Big Brother did not send us a personally autographed check (at least I could have framed that). What happened is this, one of those 5,000 pages in that recent elephantine finance Bill mandated what #3 son called ‘Fairy Dust Money’ be sprinkled around until our bank had to believe they had real money in our account.

So, who printed the money for 100-million people to get $600? The answer appears to be, nobody. For some time now, we’re told, someone, somewhere, somehow just says to a computer, “you’ve now got $900-Billion to spend”. If you’re doing double-entry at home, the debit of $900-Billion to ‘Cash on Hand’ is offset by credit to what is called “Debt”. That is, someday my great-grandchild’s grandchild will somehow pay it with ‘real’ money.

Billions of these ‘dollars’ are then transferred to banks, who by law are required to treat it as “real” money. Since none is paper money, why is it money? The answer seems to go along lines of we need to just get rid of paper money altogether and only use good-old fiat computer money. Therefore, from now on every transaction should be done in ‘zeros & ones’ on cellphones. ‘Fairy Dust’ Funds are thereby now defacto real money.

Enter some fun facts about Fairy Dust Funds…

• Our government prints the money, makes us use the money they print, and then demand part of it back so they can afford to print money, right? Every I’ve asked this the question responses have been something about being a Federalist or worse – Libertarian. Always assume this response means ‘nobody knows’.

• The debt, in theory, will someday be paid out of the above referenced taxes from money the government ‘prints’. Turns out what is coming in now barely pays for the folks who print the money – and, sure, a lot of other stuff. There is no money to pay off the debt, just interest; while we can still pay the interest. So, raise taxes to resolve debt?

• Everybody (nobody?) knows as long as Republicans have a one-vote majority they will never raise taxes! It is part of the very money their donors don’t pay in taxes which donors use to pay tribune to their senators and representatives. Raise taxes on donors? Thou Heretic! There has to be a better answer! [Sidebar: Hidden deep inside the 2017 Rebate to Donors Tax Bill Republicans included provision which increases taxes on ‘middle class’ workers. Nobody will realize it until they prepare 2021 taxes in 2022. Not to worry, no rich folks were harmed by this tax.]

• Everybody (nobody?) knows the Democrats are the ones who demand spending the money which does not exist, derived from debt which will never be repaid out of the taxes they raise and then spend on stuff unrelated to paying off any debt.

One more Fun Fact. When I was very young my father explained that stuff about the Constitution and how Alexander Hamilton had established the credibility of the new country by paying off all debts. How Alex found the time while appearing on Broadway I do not recall. One thing my father said which always stood out in my mind is this: Every democracy which goes into debt eventually ‘recapitulates’ (it’s a word you remember and figure out later). That is, they declare all outstanding printed money void and default on all debts. Watch this space.

Welcome to 2021! Don’t forget to spend your $600 while the Fairy Dust lasts!