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I nominate this "the federal government has to spend money before it can use it" as the dumbest post of all time! Ranks up there with Pelosi's we have to spend our way out of this recession comment.
Who does the US borrow from? Santa Claus? The US government doesnt have to borrow its own fiat as a currency issuer. Any and all tax payments and bond purchases are made with money that is already spent. If this wasnt so, there wouldnt be any dollars to buy US financial securities (Treasuries) or any money to extinguish your tax obligations.
Operationally, the settlement of bond auctions and tax payments to the Treasury can only happen through reserve accounts. The balances in these reserve accounts are from previous government deficits which are comprised of FED loans or credits to these reserve accounts. These Federal Reserve loans can be facilitated by the purchase of private securities, loans, and repos. Therefore, in order for any bond sales to get settled, or for tax payments to get made, there must have been previous government spending.
Technically, the U.S. government borrows nothing at all. It creates money and expands the money supply by debt creation. Unfortunately, many Americans imagine that the process is similar to car loans. It isn't.
The U.S. can create as many jobs as it wants. The fact that it doesn't create jobs says a great deal, don't you think?
Who does the US borrow from? Santa Claus? The US government doesnt have to borrow its own fiat as a currency issuer. Any and all tax payments and bond purchases are made with money that is already spent. If this wasnt so, there wouldnt be any dollars to buy US financial securities (Treasuries) or any money to extinguish your tax obligations.
Operationally, the settlement of bond auctions and tax payments to the Treasury can only happen through reserve accounts. The balances in these reserve accounts are from previous government deficits which are comprised of FED loans or credits to these reserve accounts. These Federal Reserve loans can be facilitated by the purchase of private securities, loans, and repos. Therefore, in order for any bond sales to get settled, or for tax payments to get made, there must have been previous government spending.
Technically, the U.S. government borrows nothing at all. It creates money and expands the money supply by debt creation. Unfortunately, many Americans imagine that the process is similar to car loans. It isn't.
The U.S. can create as many jobs as it wants. The fact that it doesn't create jobs says a great deal, don't you think?
Modern capitalist economies aren't structured to handle full employment. We gave up on full employment as national policy after WWII. I'm a proponent of the Job Guarantee to reach full employment.
Unemployment happens when net government deficits are too small to meet the demands of the non-government net saving desires. In other words, unemployment is a byproduct of deficits being too small.
Economics bigots are the biggest ass holes.You are making a fool of yourself, rkm. Your complete lack of understanding of economics and lack of interest in learning anything is showing. There are actual really high level economics blogs, where you would not have a clue. There is this rather average joe level economic board, which is still way above you. Maybe you could look at the efci.com site. It is more your level. The full name is economics for congenital idiots.com. Just your level.
The "fed" is not the U.S. Government. It is you that is confused.I nominate this "the federal government has to spend money before it can use it" as the dumbest post of all time! Ranks up there with Pelosi's we have to spend our way out of this recession comment.
Who does the US borrow from? Santa Claus? The US government doesnt have to borrow its own fiat as a currency issuer. Any and all tax payments and bond purchases are made with money that is already spent. If this wasnt so, there wouldnt be any dollars to buy US financial securities (Treasuries) or any money to extinguish your tax obligations.
Operationally, the settlement of bond auctions and tax payments to the Treasury can only happen through reserve accounts. The balances in these reserve accounts are from previous government deficits which are comprised of FED loans or credits to these reserve accounts. These Federal Reserve loans can be facilitated by the purchase of private securities, loans, and repos. Therefore, in order for any bond sales to get settled, or for tax payments to get made, there must have been previous government spending.
Technically, the U.S. government borrows nothing at all. It creates money and expands the money supply by debt creation. Unfortunately, many Americans imagine that the process is similar to car loans. It isn't.
The U.S. can create as many jobs as it wants. The fact that it doesn't create jobs says a great deal, don't you think?
So then you are complaining that Reagan's tax policies resulted, in part, in people going back to work? You are just an ass.Wow. You actually admit to writing that drivel?? Well, good for you. I wrote that paragraph you ignorant prick. What the hell is a "ue rate?" Do you mean "revenue?" You are nothing but a TROLL An ass hole looking for a life.Wow. Again right out of the bat shit crazy con web sites. Nice. Do you ever try rational, non partial sources??? Or do you stay rite there in your comfort zone. Because it leaves you as nothing but a joke, if you do.
For instance, if you look at the charts, you would see that reagans tax cuts in 1981 started the ue rate up, and it went to the highest point since the great depression by late 1982. Then, he borrowed more than all the previous presidents combined, and tripled the national debt. And increased taxes 11 times. His other tax decreases happened during low unemployment. When tax decreases make sense. Sorry for the truth of the matter. You can now go back to the bat shit crazy con sites you feel more comfortable in.
The ue rate, should you have any idea of economics is widely understood to mean the unemployment rate. Not my problem you are an ignorant con with no economic knowledge.
no, me poor ignorant con tool. I saw who they got their nubers from. But we all by this time, assuming we have a brain (maybe that leaves you out) know that those numbers can be picked as wanted for particular times. And given particular meanings which have nothing to do with the truth. I could, for instance, go get numbers moveon.org had taken from the blm and produced graphs and made statements of meaning. But then I would not. Because I have integrity. Sorry you do not.The source is OMB (the whitehouse) and BLS (Bureau of Labor Statistics). You saw a website advertisement and freaked out. ROFLNice. A graph from freedom works. A true bat shit crazy con web site. Try again, me poor ignorant con tool.
The "fed" is not the U.S. Government. It is you that is confused.Who does the US borrow from? Santa Claus? The US government doesn’t have to borrow its own fiat as a currency issuer. Any and all tax payments and bond purchases are made with money that is already spent. If this wasn’t so, there wouldn’t be any dollars to buy US financial securities (Treasuries) or any money to extinguish your tax obligations.
Operationally, the settlement of bond auctions and tax payments to the Treasury can only happen through reserve accounts. The balances in these reserve accounts are from previous government deficits which are comprised of FED loans or credits to these reserve accounts. These Federal Reserve loans can be facilitated by the purchase of private securities, loans, and repos. Therefore, in order for any bond sales to get settled, or for tax payments to get made, there must have been previous government spending.
Technically, the U.S. government borrows nothing at all. It creates money and expands the money supply by debt creation. Unfortunately, many Americans imagine that the process is similar to car loans. It isn't.
The U.S. can create as many jobs as it wants. The fact that it doesn't create jobs says a great deal, don't you think?
no, me poor ignorant con tool. I saw who they got their nubers from. But we all by this time, assuming we have a brain (maybe that leaves you out) know that those numbers can be picked as wanted for particular times. And given particular meanings which have nothing to do with the truth. I could, for instance, go get numbers moveon.org had taken from the blm and produced graphs and made statements of meaning. But then I would not. Because I have integrity. Sorry you do not.The source is OMB (the whitehouse) and BLS (Bureau of Labor Statistics). You saw a website advertisement and freaked out. ROFL
Integrity is earned. You are nothing but a piece of shit to me.
Wow. You actually admit to writing that drivel?? Well, good for you. I wrote that paragraph you ignorant prick. What the hell is a "ue rate?" Do you mean "revenue?" You are nothing but a TROLL An ass hole looking for a life.Wow. Again right out of the bat shit crazy con web sites. Nice. Do you ever try rational, non partial sources??? Or do you stay rite there in your comfort zone. Because it leaves you as nothing but a joke, if you do.
For instance, if you look at the charts, you would see that reagans tax cuts in 1981 started the ue rate up, and it went to the highest point since the great depression by late 1982. Then, he borrowed more than all the previous presidents combined, and tripled the national debt. And increased taxes 11 times. His other tax decreases happened during low unemployment. When tax decreases make sense. Sorry for the truth of the matter. You can now go back to the bat shit crazy con sites you feel more comfortable in.
The ue rate, should you have any idea of economics is widely understood to mean the unemployment rate. Not my problem you are an ignorant con with no economic knowledge.
Who makes the mistake that we are on a fixed-exchange rate? Who?Anyone who will buy t-bills. Sometimes that is American citizens, sometimes it is non-us citizens, sometimes the independent banking cartel called the "fed" does.
Operationally, bonds function to drain any excess reserves from the banking system. They also provide a place for the private sector to park its wealth in a risk-free environment.
What do those Americans and foreigners use to purchase T-Bills? They use dollars in their respective bank accounts which had to have been spent into existence by the government at some point. <Your accusation that all money has to have been spent into existence by the government at some point, is ludicrous. I work in a land far far away, I get paid for my labors by the sale of my product, I CREATED MY WEALTH NOT THE GOVERNMENT, ME, I DID IT. The dollar is just a measure of the assets that I have amassed and represents my labor. >
I have no idea what borrowing fiat means. But yes the US Government can engage in the process of quantitative easing, or could change the current monetary system, and can also declare debt as invalid. It's good to be king.
QE isn't money printing if that's what you're getting at. US public debt simply reflects the total savings of the US economy. In other words, it represents the private sector's desire to save in US financial assets. <Saying the "US public debt simply reflects the total savings of the US economy" is ludicrous. You only have the perspective of the investor. You completely ignore the perspective of the poor children who will have to work their entire lives to pay off your debts. >
My point was the spending, under a fiat monetary system, precedes any taxing and borrowing. <ludicrous>
HUH? Here you appear to be confusing the concept of "currency" in the form of notes, with the concept of amounts of funds secured in accounts foreign and domestic. At any point in time only a very small fraction of assets are represented in the form of physical bills or notes.
No, I'm not.
It's the same on the federal government's side of the ledger. Currency and bonds are liabilities of the federal government, which makes them assets to the public. <duh.. yeah cash is an asset Debt is not an asset. Debt is a bill, a thing that has to be paid. Bonds paid to the holder end up as cash in the holders hands when the tax payer has his assets taken from him to meet the bonds. >
Agreed. Not sure how that ties to "the federal government has to spend money before it can use it" comment but ok. I suppose it was a typo and you really meant to say "the federal government has to borrow money before it has to repay the loan by taking our assets?"
The current assumption is we pay taxes and purchase bonds so the national government can spend. This is operationally not the case. <yes it is> We can't use the currency until the federal government spends it <bull shit yet again you are confusing fed loans to banks to float currency with government spending you really have no idea what you are talking about>, which is why spending precedes borrowing and taxing under a fiat system. Uncle Sam is borrowing back and taxing what's already spent<bull shit>. People make the mistake that we're still on a fixed-exchange rate in which case we'd really have to tax and borrow.
Who does the US borrow from? Santa Claus? The US government doesnt have to borrow its own fiat as a currency issuer. Any and all tax payments and bond purchases are made with money that is already spent. If this wasnt so, there wouldnt be any dollars to buy US financial securities (Treasuries) or any money to extinguish your tax obligations.
Operationally, the settlement of bond auctions and tax payments to the Treasury can only happen through reserve accounts. The balances in these reserve accounts are from previous government deficits which are comprised of FED loans or credits to these reserve accounts. These Federal Reserve loans can be facilitated by the purchase of private securities, loans, and repos. Therefore, in order for any bond sales to get settled, or for tax payments to get made, there must have been previous government spending.
Technically, the U.S. government borrows nothing at all. It creates money and expands the money supply by debt creation. Unfortunately, many Americans imagine that the process is similar to car loans. It isn't.
The U.S. can create as many jobs as it wants. The fact that it doesn't create jobs says a great deal, don't you think?
Modern capitalist economies aren't structured to handle full employment. We gave up on full employment as national policy after WWII. I'm a proponent of the Job Guarantee to reach full employment.
Unemployment happens when net government deficits are too small to meet the demands of the non-government net saving desires. In other words, unemployment is a byproduct of deficits being too small.
no, me poor ignorant con tool. I saw who they got their nubers from. But we all by this time, assuming we have a brain (maybe that leaves you out) know that those numbers can be picked as wanted for particular times. And given particular meanings which have nothing to do with the truth. I could, for instance, go get numbers moveon.org had taken from the blm and produced graphs and made statements of meaning. But then I would not. Because I have integrity. Sorry you do not.
Integrity is earned. You are nothing but a piece of shit to me.
From what I've seen here, Rshermr has owned you in every sense of the word, RKMBrown. I don't think he/she values your opinion much. You don't seem to have much of a grasp of economics.
That stupid fucker doesn't begin to understand what the federal debt represents, and how it functions.
That stupid fucker doesn't begin to understand what the federal debt represents, and how it functions.
Bull shit.
Debt represents the quantity that this government had to borrow because it's spending was greater than it's tax revenue. You guys seem to think our debt is some sort of gift we are giving to our children. What a load a poo.
That stupid fucker doesn't begin to understand what the federal debt represents, and how it functions.
Bull shit.
Debt represents the quantity that this government had to borrow because it's spending was greater than it's tax revenue. You guys seem to think our debt is some sort of gift we are giving to our children. What a load a poo.
Answer this, dumbass.
How does the U.S. government expand the money supply to meet the needs of an expanding economy?
Technically, the U.S. government borrows nothing at all. It creates money and expands the money supply by debt creation. Unfortunately, many Americans imagine that the process is similar to car loans. It isn't.
The U.S. can create as many jobs as it wants. The fact that it doesn't create jobs says a great deal, don't you think?
Modern capitalist economies aren't structured to handle full employment. We gave up on full employment as national policy after WWII. I'm a proponent of the Job Guarantee to reach full employment.
Unemployment happens when net government deficits are too small to meet the demands of the non-government net saving desires. In other words, unemployment is a byproduct of deficits being too small.
What a load of crap. Yeah everything comes from government debt. Without government debt we'd have no private enterprise. OMG where do you idiots learn this shit?
Bull shit.
Debt represents the quantity that this government had to borrow because it's spending was greater than it's tax revenue. You guys seem to think our debt is some sort of gift we are giving to our children. What a load a poo.
Answer this, dumbass.
How does the U.S. government expand the money supply to meet the needs of an expanding economy?
It doesn't.
It authorizes the fed to "increase" the amount of fed bond money the fed cartel banks can sell by putting ones and zeroes in the accounts of the bank. Nothing backs this money it's funny money. It's supposed to represent real assets but it does not have to actually represent assets. Basically it's like the money grows on trees for the cartel. They can then lend that money out. Typically the amount "authorized" to the banks just goes up till the pyramid scheme crashes. The fed is not the government.
Bull shit.
Debt represents the quantity that this government had to borrow because it's spending was greater than it's tax revenue. You guys seem to think our debt is some sort of gift we are giving to our children. What a load a poo.
Answer this, dumbass.
How does the U.S. government expand the money supply to meet the needs of an expanding economy?
It doesn't.
It authorizes the fed to "increase" the amount of fed bond money the fed cartel banks can sell by putting ones and zeroes in the accounts of the bank. Nothing backs this money it's funny money. It's supposed to represent real assets but it does not have to actually represent assets. Basically it's like the money grows on trees for the cartel. They can then lend that money out. Typically the amount "authorized" to the banks just goes up till the pyramid scheme crashes. The fed is not the government.
Modern capitalist economies aren't structured to handle full employment. We gave up on full employment as national policy after WWII. I'm a proponent of the Job Guarantee to reach full employment.
Unemployment happens when net government deficits are too small to meet the demands of the non-government net saving desires. In other words, unemployment is a byproduct of deficits being too small.
What a load of crap. Yeah everything comes from government debt. Without government debt we'd have no private enterprise. OMG where do you idiots learn this shit?
US public debt is nothing more than private wealth. Any and all interest payments on said private wealth constitutes private income. Again, US public debt is equal to private wealth down to the last penny. Our public debt is nothing more than the accrued budget deficits of the past.
Secondly, you're correct, deficit spending creates financial assets for the private sector. Our deficits add net financial assets to the private sector, which creates the demand for real goods and services. This has enabled Americans to maintain income growth. This income growth, at the end of the day, has enabled us to save and accrue financial assets at a much faster rate then would be possible without deficits.
