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The supposed "highway fund" is a neat column on a spreadsheet but all monies are part of the general fund. How do you suppose they - federal government - pulls XXX $T out of thin air to send, fund or spend? It's as if it is one big wallet they stick their fat hands into on a regular basis.
We both know the realities. But in 1956 it was set up at least in part to be specifically separated from the general fund.
'Prior to the 1956 Highway Revenue Act and the establishment of the Highway Trust Fund roads were financed directly from the General Fund of the U.S. Treasury. The 1956 Act directed federal fuel tax to the fund to be used exclusively for highway construction and maintenance.'
If you read the OP, you would know why every surplus has led to a recession.
Federal Balance = Private Sector Balance + Foreign Sector Balance
To reduce the Public Sector Debt (Federal Balance), the Private Sector has to shift more tax revenue back to the public sector than it receives. This would drain the Private Sector Balance.
The day that the countries that do business with the U.S. decide there is NOTHING backing the dollar, the dance stops. It amazes me that people cannot look at history and understand a country cannot run massive deficits with no way to EVER pay it back and not know what will eventually happen.
The "surpluses" from 1998 to 2001 held a booming economy.. Thats how they create the dam surplus.
Tell me how more people working, thus reducing programs like welfare, and increasing tax revenues because people have paychecks, create recessions..
Do you even think?
Do you ever respond to anything without sounding irrationally angry?
(Bullying is a Fox News tactic)
Governments are not businesses. A surplus for the government is a deficit for the private sector. Tell me how the government collecting more revenue than it issues from all the taxpaying citizens and businesses creates economic growth?
Quote:
Originally Posted by fordlover
State level government is just the fed's little sibling. If all the BS you spewed up above was true, why is California having so much trouble? Perhaps they should raise taxes?
California is not monetarily sovereign. Perhaps you didn't read the OP?
California can be bailed out by the Federal government as many times as needed, as the Federal government is sovereign over the U.S. dollar. However, California does not issue U.S. dollars, therefore is limited by its tax revenues and any revenue allocated to it by the Federal Government.
(By the way, California's debt outlook has been upgraded to positive)
Quote:
Originally Posted by pghquest
yes, they can create money, but the minute investors dont buy the treasury debt used to create the money, we're bankrupt.
Not at all. The government just buys its own debt.
Quote:
Originally Posted by alphamale
Why did your boy Obama vow to cut the debt in half during his first 4 years?
Why did he call raising the debt "un-American"?
Is he ignorant, stupid or both?
I KNOW that he is both....plus a liar on top of it all, but lefties supported him regardless.
Obama (and most politicians in Washington) aren't stupid or ignorant to monetary sovereignty. They are bribed to convey the ignorance to you.
Why do you think deficit dove Republicans do a 180 and increase deficit spending towards the military as soon as they capture Congress and the White House? Some "spending problem..."
yes, they can create money, but the minute investors dont buy the treasury debt used to create the money, we're bankrupt.
Not true. Although we might be at least temporarily restricted with any new deficit spending. Then we can either change our laws and have Congress conjure money like the Fed or China. Or we can let the Fed do it like China.
Do you ever respond to anything without sounding irrationally angry?
I'm angered by stupidity
Quote:
Originally Posted by Opin_Yunated
(Bullying is a Fox News tactic)
If you consider me calling your stupid statements, "bullying", then stop making stupid ass statements.
Quote:
Originally Posted by Opin_Yunated
Governments are not businesses. A surplus for the government is a deficit for the private sector.
No **** Shirlock Holmes.. But that doesnt mean governments dont need people to buy their debt..
Thtas how Savings Bonds, TBills get issued..
When people stop buying their debt and expect to be paid back for previously issued bonds, the partying stops.. I've listed NUMEROUS countries which have gone bankrupt.
Quote:
Originally Posted by Opin_Yunated
Tell me how the government collecting more revenue than it issues from all the taxpaying citizens and businesses creates economic growth?
You got it backwards as always. Government collects more revenues BECAUSE economic growth is taking place. They arent creating economic growht by collecting more.
Quote:
Originally Posted by Opin_Yunated
Not at all. The government just buys its own debt.
Government cant buy its own debt unless there is tax revenues to cover for it. Thats how the Federal government buys debt from the Social Security fund, because the fund had more than it needed.
if the Social Security fund is running a negative, then the federal government cant borrow money that ISNT THERE.
The bottom line is, monetary value is all chicanery, smoke, and mirrors.
The currency of the United States is based purely on the full faith and credit of the United States. That dollar bill in your pocket is worth a dollar because the government says it is. The actual BUYING power of that dollar is steadily going down. It has nowhere near the actual buying power it had in, oh, let's say, 1950.
When the rest of the world loses faith in the dollar, and stops the credit of the United States, we will be in big trouble.
Sure, the United States has sovereignty over its money supply, and it can print as much as it wants. BUT, if nobody WANTS that money, it immediately becomes just so much wallpaper!
COULD that happen? Of course it could.
WILL it happen? Nobody knows. A lot of people are buying gold, silver, platinum, palladium, and gems just in case.
Quote:
Originally Posted by emilybh
Don't buy into that pgh. The federal government is a CORPORATION as are at least another 185,000 government operations in our country. They are stealing and hiding our money and just telling us they are broke. Again they've been LYING to us.
So the way to get the debt down is to get the deficit down first.
Correct.
Quote:
Originally Posted by Boss
The debt can be brought down.
Yes. It does not need to be brought down tomorrow, or all at once. There need only be an effective plan to reduce the federal debt to manageable levels.
That can be accomplished through "Austerity."
I can trim $1 TRILLION in pork off of your budget, and no one will starve to death or die, and your economy will not miss a beat.
Quote:
Originally Posted by Boss
No politician will say that as the top 1% do not want to pay back the money they have made since the 2008-2009 depression.
But they haven't made any money.
You're a victim of propaganda and disinformation, because you don't understand the difference between Income and Wealth.
In 1987, Debbie inherits 100 acres of land with a theoretical value of $200/acre from her grandfather. The total theoretical value of the acreage is $20,000.
Fast-forward to now, and the theoretical value of the land has increased to $22,800/acre due to your demand for land.
Debbie did not increase the theoretical value of the land...you did...that's your fault.
The 100 acres in total now has a theorietical value of $2.28 Million.
Where is that money, that $2.28 Million?
It doesn't exist.
That's what you don't understand.
Same with Ted. Ted gets $5,000 in college graduation gifts from family and friends. He buys 100,000 shares of stock in 1990. Today, in 2014, that stock has a theoretical value of $37.42 per share.
The total theoretical value is $3.7 Million.
Where's the money?
Again, it does not exist.
Maybe one day, you'll be able to wrap your brain around that.
Quote:
Originally Posted by Boss
Taxes need to rise for the upper brackets, new brackets need to be created, as high as 10 billion $. The average earnings have only gone up in certain areas of the economy, those which have benifited the most should be paying more in taxes. They could go as high as 75% for a decade on the top brackets
Not true. Although we might be at least temporarily restricted with any new deficit spending. Then we can either change our laws and have Congress conjure money like the Fed or China. Or we can let the Fed do it like China.
Ahh but changing the law to allow them to just print up currency would panic the world investors market and cease anyone from buying our debt.
The only reason we continue to be able to run deficits like we are, is because the international investment community knows we cant/wont just print up currency because doing so, would devalue the dollar and htus make their investment worthless.
Ahh but changing the law to allow them to just print up currency would panic the world investors market and cease anyone from buying our debt.
The only reason we continue to be able to run deficits like we are, is because the international investment community knows we cant/wont just print up currency because doing so, would devalue the dollar and htus make their investment worthless.
Zimbabwe did that.. their money holds no value..
IMO we should continue with our current arrangements. I wouldn't want the world to think that we might inflate. I trust the Fed more than Congress.
Ahh but changing the law to allow them to just print up currency would panic the world investors market and cease anyone from buying our debt.
The only reason we continue to be able to run deficits like we are, is because the international investment community knows we cant/wont just print up currency because doing so, would devalue the dollar and htus make their investment worthless.
Zimbabwe did that.. their money holds no value..
Devaluing the dollar is irrelevant. Like I said, money is just a point system The dollar is devalued every year. Why are all governments devaluing their currency?
(Hint: they target 2% inflation for a reason)
Quote:
Originally Posted by pghquest
I'm angered by stupidity
If you consider me calling your stupid statements, "bullying", then stop making stupid ass statements.
Personal incredulity Declaring something not true because it is difficult for you to understand.
Quote:
Originally Posted by pghquest
No **** Shirlock Holmes.. But that doesnt mean governments dont need people to buy their debt..
Thtas how Savings Bonds, TBills get issued..
When people stop buying their debt and expect to be paid back for previously issued bonds, the partying stops.. I've listed NUMEROUS countries which have gone bankrupt.
You have listed numerous countries that found it in their interest to declare bankruptcy. It doesn't mean it is necessary or required. The countries that get "forced" into bankruptcy only do so by owing significant amounts of their nation's assets in a foreign currency. The United States does not fit that discription.
Quote:
Originally Posted by pghquest
You got it backwards as always. Government collects more revenues BECAUSE economic growth is taking place. They arent creating economic growht by collecting more.
Collecting revenue has no bearing on a government's ability to issue currency. As stated in the OP, taxation does not fund government spending for a monetary sovereign government.
Quote:
Originally Posted by pghquest
Government cant buy its own debt unless there is tax revenues to cover for it. Thats how the Federal government buys debt from the Social Security fund, because the fund had more than it needed.
Incorrect. The government buys its own debt all the time. It doesn't cost taxpayers anything.
Quote:
Originally Posted by pghquest
if the Social Security fund is running a negative, then the federal government cant borrow money that ISNT THERE.
Of course it can.
Please.. tell us the last time a SS Check bounced.
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