In this week’s Presidential address, Barack Obama took on the topic of student loan debt.

Just like you can refinance your mortgage at a lower interest rate this bill would allow you to refinance your student loans, and we pay for it by closing loopholes that allow some millionaires to pay a lower tax rate than the middle class.

It may be strategic to tie student loan relief to raising taxes on the rich, but it is not necessary.

The Fed created trillions of dollars out of thin air to bail out the banks and it didn’t even cause inflation. The Fed could do the same thing for students without our need to raise any additional taxes.

Perhaps people would run amok in the streets if we let them know that taxes are not needed to pay for government programs. Is this why our leaders continue with the fiction of raising taxes to pay for government programs?

Taxes are needed to give value to our dollar (people need dollars to pay their taxes so they work to earn them), taxes are needed to control the rate of growth of the economy, and taxes are needed to control the rate of transfer of wealth from the middle class to the top 1%, but taxes are not needed to fund the government. The government is funded through the creation of money by the Fed using computer keystrokes to credit accounts at the Federal Reserve Bank.