Deficit Financing

[Doubletap]

"The government has no source of revenue, except the taxes paid by the producers. To free itself—for a while—from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as “deficit financing.” It is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods—but that money is not backed by any goods, it is not backed by gold, it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid by you (in the form of taxes) out of your future production"
-John Galt

 

[ScienceRocks]

Where and how do you believe most of financial power comes from?

1. Educated population that produce more 2...Tech, R@D and goods for the market. Do you realize how big and important this is? 3. First world infrastructure to move these goods on.

So you're promoting making America Africa because the idiot president of ours gives everyone welfare and spends 600 billion/year on our military. Oh yeah that's the goddamn ticket.

You do realize that the above 3 points is the back bone of our economy...Talk about turning us into a worthless welfare state.

 

[Doubletap]

Where and how do you believe most of financial power comes from?

1. Educated population that produce more 2...Tech, R@D and goods for the market. Do you realize how big and important this is? 3. First world infrastructure to move these goods on.

So you're promoting making America Africa because the idiot president of ours gives everyone welfare and spends 600 billion/year on our military. Oh yeah that's the goddamn ticket.

You do realize that the above 3 points is the back bone of our economy...Talk about turning us into a worthless welfare state.

The financial power that the Gov. derives comes from looting the taxpayers.
The financial power that pvt. industry derives (honestly) comes from providing a service/ product that the masses want.

 

[waltky]

Granny says, "Dat's right - dem politicians is spendin' us broke...

Fed Chair: ‘Deficits Will Rise to Unsustainable Levels’
May 7, 2014 -- Federal Reserve Chairman Janet Yellen, referencing the Congressional Budget Office's long-term budget projections, told the Joint Economic Committee of Congress today that under current policies the federal government’s deficits “will rise to unsustainable levels.”

In the 10-year budget projections it released in April, the CBO estimated that the federal government will run $7.618 trillion in deficits from 2015 through 2024. At the same time, the CBO projected that the federal government’s debt held by the public would rise from $11.983 trillion at the end of fiscal 2013 to $20.947 trillion by the end of 2024. The debt held by the public is the part of the U.S. government debt that is not held by the federal government itself. It primarily consists of marketable Treasury securities, including bills, notes and bonds. It does not include what the government calls “intragovernmental debt," which is the money the Treasury has borrowed out of the Social Security Trust Fund and other government trust funds to pay current expenses.

The total debt of the federal government at the end of fiscal 2013--including both the debt held by the public and the intragovernmental debt--was $16.719 trillion. The CBO estimates that by 2024, the total debt of the federal government will be $27.159 trillion—of which $20.947 trillion will be debt held by the public. If that projection holds up, the federal debt held by the public in 2024 would be more than four times the $5.035 trillion federal debt held by the public at the end of 2007. Yellen made her statement about unsustainable deficits when she was question by Sen. Dan Coats (R.-Ind.). Coats remarked that businessmen Indiana told him that their businesses were underperforming at this time because of the uncertainty they felt as result of federal taxation and regulatory policies.

“What recommendations would you give to us in terms of dealing with this uncertainty that is basically causing a lot of these businesses to underperform?” Coats asked. “So, I agree with you,” said Yellen. “My own discussions with businesses, I hear exactly the same things that you are citing: concerns with regulations, about taxation, about uncertainty about fiscal policy. “I guess one recommendation that I would give you is that long-term budget deficits, we can see in, for example, CBO’s very long-term projections, that they remain,” said Yellen. “There is more work to do to put fiscal policy on a sustainable course. That progress has been made over the last several years, in bringing down deficits in the short term, but that a combination of demographics, the structure of entitlement programs, and historic trends in health-care costs, we can see that over the long-term deficits will rise to unsustainable levels relative to the economy.

MORE

 

[editec]

"The government has no source of revenue, except the taxes paid by the producers. To free itself—for a while—from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as “deficit financing.” It is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods—but that money is not backed by any goods, it is not backed by gold, it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid by you (in the form of taxes) out of your future production"
-John Galt

Yes this IS true.

Of course it was NOT true in AMERICA when Ayn wrote this book.

We WERE on the international gold stardard back in those day.

But it IS an excellent description of the state of MONETARISM that plagues us now.

 

[Dont Taz Me Bro]

Keep voting for entitlements and military might. Who cares if your kids grow up in a bankrupted nation as long as it satiates your greed today.

 

[waltky]

Granny says, "All dat money comin' in an' we still in debt...

$1,248,371,000,000: FY2016 Taxes Set Record Through February; $8,263 Per Worker; Feds Still Run $353,005,000,000 Deficit
March 10, 2016 | The U.S. Treasury hauled in a record of approximately $1,248,371,000,000 in tax revenues in the first five months of fiscal 2016 (Oct. 1, 2015 through Feb. 29, 2016), according to the Monthly Treasury Statement released today.

Despite these record tax revenues in the first five months of the fiscal year, the federal government nonetheless ran a deficit of approximately $353,005,000,000 during the same period. In February alone, the Treasury ran a deficit of $192,614,000,000. The record five-month tax haul of $1,248,371,000,000 equaled approximately $8,263 for each of the 151,074,000 people in the country who had either a full or part-time job in February.

The record taxes in the first five months of this fiscal year exceed by about $63,263,220,000 in constant 2016 dollars the then-record $1,185,107,780,000 in tax revenues (in constant 2016 dollars) that the Treasury took in during the first five months of fiscal 2015.

However, even while taking in a record $1,248,371,000,000 in tax revenues from October through February, the Treasury was spending $1,601,375,000,000, according to the Monthly Treasury Statement. Thus, so far this fiscal year, the Treasury has run a deficit of $353,005,000,000.

This chart is from the Monthly Treasury Statement for February 2016.​

The largest source of revenue in the first five months of this fiscal year was the individual income tax, which brought the Treasury $597,524,000,000. The second largest source was Social Security and other payroll taxes, which brought in $428,181,000,000.

$1,248,371,000,000: FY2016 Taxes Set Record Through February; $8,263 Per Worker; Feds Still Run $353,005,000,000 Deficit