CBO: Feds Taxing More, Spending More and Running Deficits

[DRob4JC]

Originally Posted by greywar

Fair enough. Do you expect any real change though? Come on now...lets be honest.....

Reality-we haven't had a actual budget pass in a long long long time, both under Democratic control of both houses, and Republican control.

Our political system is becoming increasingly dysfunctional.

April 29, 2009 was the last time the Senate passed a budget.

The last real government budget was April 1997.

[greywar]

Originally Posted by DRob4JC

April 29, 2009 was the last time the Senate passed a budget.

The last real government budget was April 1997.

And in 2005 which party controlled both the house and the senate?

[steven_h]

Originally Posted by Opin_Yunated

Taxation does not come before spending.

The Federal government is monetarily sovereign, it creates money by spending in deficit. The Federal government can spend money regardless of if it collects a single cent in taxes. The two are unrelated.

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by your logic the government should simply give everyone a million dollars, then the economy would explode!






Good Night Nurse

[Opin_Yunated]

Originally Posted by PedroMartinez

OK, so they can stop taxing us right?

Yes they could, but interest rates would have to go up to compensate.

Originally Posted by DRob4JC

Dude... We haven't had an operating budget since the Dems controlled half of Congress. You have no credibility with that last statement. The only spending control has been the symbolic Debt Ceiling.

The Debt Ceiling is meaningless political theater.

Originally Posted by Goinback2011

Whoever is brainwashing you Bots hasn't told you the consequences of endless money printing.

How about you enlighten me?

Originally Posted by steven_h

by your logic the government should simply give everyone a million dollars, then the economy would explode!

It could, but then $1 million wouldn't get you much on the international market. We could certainly do it though, provided we had an isolated, protectionist economy.

No, the economy would not explode.

[greywar]

Originally Posted by Opin_Yunated

Yes they could, but interest rates would have to go up to compensate.

Don't you mean inflation rates? (and no im not talking hyperinflation nonsense)

[Opin_Yunated]

Originally Posted by greywar

Don't you mean inflation rates? (and no im not talking hyperinflation nonsense)

No, interest rates. The Fed adjusts the interest rates to keep inflation near its annual target of 2-3%.

Take a gander at the oil vs. inflation rates. Oil prices pull the CPI up or down, and the Fed adjusts interest rates to constrain inflation. In deflationary movements, it lower interest rates to zero. The Fed uses interest rates to balance demand-pull inflation and monetary inflation.

(This explains how money printing isn't the core cause of inflation.)