To the Journal editor:
In reference to the questionable deficit remarks recently published, I, a retired member of clergy and not an economist wish to ask, "Just exactly what comprises the projected $20 trillion deficit in 2017?"
Does it include all money in circulation? Does it include what's in my bank account, wallet or investments? Does it represent all of the present Federal Reserve notes issued and in circulation?
Was the projected population in 2017 taken into account in your calculations of a $20 trillion deficit? From what source will their labor compensation come? Is the $50,000 per man, woman and child in the nation based on the population projections for 2017?
My understanding is that the Federal Reserve system is responsible for keeping the nation supplied with sufficient amounts of credit (dollars) as appropriated by Congress to insure that all may receive "Federal Reserve notes" (as printed on every denomination of money) in return for their hard work, thereby sustaining our economy.
The Federal Reserve System cannot redeem one reserve note with a useable commodity other than another Reserve Note until gold or other precious metal is once again in circulation.
I know that the nation's gold reserve is used to back international transactions. I recall that President Richard Nixon took us off the gold standard, and before that all silver certificates were recalled by a date certain.
Taxation is one method by which the government redeems Federal Reserve notes. Some segments of our citizenry have, by enacted rules and regulations, accumulated amounts of funds that are not taxed at the same rates as are other citizens.
An inequality that frustrates the government in not being able to redeem additional Federal Reserve note values and thus lower the deficit.
We are not in a downward spiral of debt. We are in a circular system that needs to be expanded from time to time with increased numbers of Federal Reserve notes being put into circulation by act of the Congress and by increased taxes. That's my opinion.