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Why would the US be broke if we did not have a deficit?
Also - why do you believe people are stupid and in need of a huge government to run their lives?
AlienScience
People are stupid...that is just a fact.
AlienScience
In the this case, the means of covering it is by selling Treasury Bonds. The only reason we can sell these Treasury Bonds is because there is a big demand for them. There is a demand for them because our economy is strong and those buying them know that we have always paid them out. Selling these Treasury bonds due to having a deficit injects extra money into our economy that we would normally not have access to.
beezzer
I think a partnership between OWS and the Tea Party might be beneficial.
AlienScience
reply to post by Dianec
Why would the US be broke if we did not have a deficit?
Terms are important here. Having a deficit is a bit different than intentionally having deficit spending. Having a deficit implies you budgeted for X amount and came up short. Having intentionally deficit spending means that you know you are spending more than you take in but you have means of covering it.
In the this case, the means of covering it is by selling Treasury Bonds. The only reason we can sell these Treasury Bonds is because there is a big demand for them. There is a demand for them because our economy is strong and those buying them know that we have always paid them out. Selling these Treasury bonds due to having a deficit injects extra money into our economy that we would normally not have access to.
Having deficit spending allows us to grow at a faster rate than if we just spent based on our revenues. At this point, if we cut back our spending to under what we collect in our revenues, we have no reason to sell Treasury Bonds, hence no one will invest in us, hence they will invest elsewhere. Plus, we have the problem of having to cut spending to get below our revenue, that is what will really hurt us. Because now not only are we growing...we are shrinking our economy. Everywhere you cut back in government, you decrease our economy. Even if it is closing a National Park...all those employees are now out of work, aren't getting paid and not putting that money back into our economy. Or if you cut a infrastructure project, same thing. Once you start shrinking, it is a death spiral into being broke.
Also - why do you believe people are stupid and in need of a huge government to run their lives?
Because I live in society and I interact with people everyday.
Are you telling me people aren't stupid?
And yes, people need to be told what to do, history has proven this. Are you telling me you would like to live in a country that has no laws and no one to enforce those laws? No official consequences and no formal judicial system to decide if something is a "crime"???
People are stupid...that is just a fact.
Zanti Misfit
reply to post by beezzer
Bottom Line Mr. Beez , in Order to Once Again have " Peace Of Mind " , we just gotta get Rid of the Chokin' " Yoke " of Da Man Right Now , or Else in the Future , Techo Slavery fermented in the Minds of the Corporate Elites Awaits US All .........edit on 18-10-2013 by Zanti Misfit because: (no reason given)
BardingTheBard
AlienScience
People are stupid...that is just a fact.
So sayeth the person.edit on 18-10-2013 by BardingTheBard because:
AlienScience
Absolutely. I've done stupid things in my life, more so in my youth than in adulthood...but I'm not immune to my own declaration.
Can you say you have never done something stupid? Can you say that everyone that you know are smart individuals that make perfect choices all the time?
buster2010
The TP people themselves are not dangerous. The reason why some people think they are dangerous is because of the nutcases they vote into office.
beezzer
We need to start steering this vehicle instead of just starting it and letting it goes where we "plan" on it to go.
Phoenix
AlienScience
In the this case, the means of covering it is by selling Treasury Bonds. The only reason we can sell these Treasury Bonds is because there is a big demand for them. There is a demand for them because our economy is strong and those buying them know that we have always paid them out. Selling these Treasury bonds due to having a deficit injects extra money into our economy that we would normally not have access to.
Before leading others into fantasy land we must remind all that much of the 85 billion newly invented each month goes to buy our own treasury bonds which gives the impression that there is a market - that market collapsed in 2008 and has been on life sustaining ventilation ever since then.
Problem for the man in the street is his spending power is steadily declining due the newly invented dollars that never make it to main street.
Federal Reserve invents, gives to banks, banks buy treasuries for coupon value and around and around they go with no end in sight. Only ones making out like bandits are the banks and politicians who delay their virtual hanging another day.
The Tea party wants to end the circle and is therefore very dangerous indeed.edit on 18-10-2013 by Phoenix because: (no reason given)
Dianec
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Also - why do you believe people are stupid and in need of a huge government to run their lives?
Genuinely curious - not rhetorical questions.