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How will it ever catch up to them...if they keep printing money left and right?
If they can 'artificially' keep the stock market as high as it currently is, I bet they can ensure devaluation doesnt happen either, or is delayed over and over again.
Think about it...if they just kept throwing money out of airplanes and devaluation didnt happen, prices would remain the same, the economy would appear to be great, they could keep this going indefinitely imo!
After taking on an historically huge debt, the next logical step is to inflate it away or tax the population like we haven't seen in a long time.
They will probably try to inflate before they try to tax.
Here is one theory. I don't have a strong enough background in economics to have an opinion, but I happen to know the man who is mentioned in this article as one of the founders of Modern Monetary Theory. https://www.cnbc.com/2020/04/29/op-e...l&par=sharebar
Taxes. Plus, governments don't deal in tangible money. It's just another zero added to the computer program that is our currency.
exactly. while there is a large number of businesses that have shut down, or cut back on providing services and product, the country as a whole has not shut down. things are still being made, and sold, and we still have products being imported so there are tariffs to collect, and of course there are proerty taxes still being collected along with income taxes, sales taxes, interest and penalties, etc.
and on top of all that, our governments have money invested in the markets around the world, stocks, bonds, Tbills, and other interest bearing financial instruments, as well as commodities such as gold, silver, platinum, etc.
so while the money isnt rolling into the accounts at a high rate, it is still coming in.
With 30 million+ people unemployed and not paying taxes and 80% of businesses shuttered and not paying taxes, where is revenue to operate all levels of government coming from? The Federal government is not collecting, it's paying out. So who is paying for SS, Medicare, and defense?
What surprises me is how long it has taken people to ask this question during Trump's entire administration. We have been playing with "Funny Money" the entire time.
What surprises me is how long it has taken people to ask this question during Trump's entire administration. We have been playing with "Funny Money" the entire time.
Ask the Congress they are the bankers-- do they care NO- 90% are old and will die off before the shyte hits the fan.
With 30 million+ people unemployed and not paying taxes and 80% of businesses shuttered and not paying taxes, where is revenue to operate all levels of government coming from?
Non-essential employees have been furloughed. You'd have to be living in a cave not to know that.
Quote:
Originally Posted by thrillobyte
The Federal government is not collecting, it's paying out. So who is paying for SS, Medicare, and defense?
Since you don't understand how government financing works, I'll explain it.
Social Security and Medicare operate on a pay-as-you-go system.
FICA and HI (Medicare) payroll taxes collected are paid out directly each month.
When a surplus of tax revenues exist for the OASI, OADI or HI programs, that money is released to the General Fund and a special treasury security is issued in its place for the OASI, OADI and HI Trust Funds.
When either program fails to collect sufficient revenues to pay benefits for a given month, the special treasury securities in the OASI, OADI or HI Trust Funds are sold back to the government to convert them to cash to pay benefits owed.
For example, January 2020 OASI had a $10.3 Billion surplus. That's normal, because 1) it's the end of the year and 2) it's the end of a quarter and those people who have to pay taxes on their Social Security benefits make their tax payments in January often pay their taxes on a quarterly or yearly basis.
In February 2020, Social Security took a $12.2 Billion loss which wiped out the gains in January. The $2+ Billion shortfall was made up by converting special treasury securities from the OASI Trust Fund.
In March 2020, you only took a $6.1 Billion loss, which is not bad considering the economy was winding down due to COVID-19.
You still have $2.79 TRILLION in the OASI Trust Fund.
For military spending and all other spending, the government does what it normally does, which is package monthly deficits as T-bills and sells them.
yep- I mentioned HYPERINFLATION in a few of my previous posts. We are printing MrT. Checks with no funds.
There is money in the world, doesn't mean the US govt has it in their checkbook... but we have been running just fine and not stopped any walls or other stupid spending,,, so we will catch up one day. Maybe the Congress with the potus need to be sent to a class in Economics??
Can the Federal govt. just mortgage their assets like Federal lands?
What surprises me is how long it has taken people to ask this question during Trump's entire administration. We have been playing with "Funny Money" the entire time.
So let me see if I get this You and I are unemployed, our businesses are closed so the money we were all paying into the Federal evaporates. So the Fed Reserve just prints up enough greenbacks to replace what we're not paying in + what the Federal govt. is paying out????? Sounds like recipe for hyperinflation with all that green circulating.
Without massive money printing, we’d probably have hyper deflation right now. One out of ten Americans have lost their jobs in the past 2 months due to the coronavirus.
If everyone got a $1 million stimulus check, then yes, we would have hyperinflation. But they aren’t doing that. The point is to give everyone enough money to keep the economy functioning for a few months while we are on lockdown.
Local governments will have money in the bank still, although sales tax receipts and any local income taxes have likely dropped, since they rely mostly on property taxes which have probably been paid already.
The pinch may come when the new tax year begins (in Maryland it's July 1 with property taxes due by Sept. 30) if people can't pay them.
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You and I are unemployed, our businesses are closed so the money we were all paying into the Federal evaporates. So the Fed Reserve just prints up enough greenbacks to replace what we're not paying in + what the Federal govt. is paying out????? 
