Plantagenet wrote:Revi wrote:There's no way to end the endless dole. It's money created from nothing for projects and giveaways from now on. it's okay.
Actually its not created from nothing.
The money used for deficit spending by the Feds is borrowed.
That means it has to be repaid.....with interest.
In 2020 the Congress spent well over half a billion dollars just to pay the
interest on the national debt.
AND no doubt the interest payment will hit 1 trillion per year pretty soon, with all the crazy spending Trump and now Biden are doing.
Clearly there are better things we could do with 0.5-1 trillion per year then waste it on interest payments.
Revi wrote: Inflation or deflation? Hard to tell.
Cheers!
Plant,
I could not tell if you were referring to the Federal Government, or the Federal Reserve, big difference. One is an inept government, and the other is a blood sucking leach.
Let me see if I can clarify a little.
Banks i.e. The Federal Reserve get to print money out of thin air to loan to the US government by buying US Bonds that pay interest back to the Federal Reserve. Banks used to be restricted to loaning 90% of their money, but that restriction no longer exists.
So, the money has no backing and is printed from nothing whenever the "need" arises. The Federal reserve gets an infinite ROI, and the Government gets more and more debt.
The politicians get to use the money to shape policy, and punish those they do not like. In addition, they get to tax people, (under the guise of paying for the programs), for even more power. Some examples are using the IRS to scrutinize the finances of opponents, and pretending they are protecting the proles by taxing the rich. Of course the rich just pass those costs onto their customers (hence Inflation).
Were you around in the 70's when we had Stagflation? My guess is that's where we are headed.
Ideally, our currency should be deflationary. As our knowledge advances, tools improve, AI, and automation should be making things cheaper, improving the value of your dollar. Unfortunately, except for tech, this does not seem to be happening.
PEACE