The federal government is the source of dollars. Why does it need to borrow them?

[Street Juice]

Right now, about 23 cents of every federal dollar spent goes to pay interest incurred from borrowing. So, of that $6.13 trillion the federal government spent last year, about $1.41 trillion went “to interest.” And since we borrowed money to cover expenditures last year, we literally borrowed money to pay the interest on money we’d borrowed.

Interest is basically the cost of renting dollars. So why would the federal government need to rent dollars from someone else? The federal government is the source of dollars—not of wealth, but dollars. Why doesn’t the federal government just “print” enough dollars to cover the $6.13 trillion it spends? Why do we need to borrow dollars? And who are we borrowing them from, anyway?

The Grand Dispossession

Stripped of our wealth while funding our destruction plus the slaughter of children. On the up side, the Christian Zionists will be rewarded for their collaboration (but they have to wait until death)

craignelsen.substack.com

 

[jackflash]

Right now, about 23 cents of every federal dollar spent goes to pay interest incurred from borrowing. So, of that $6.13 trillion the federal government spent last year, about $1.41 trillion went “to interest.” And since we borrowed money to cover expenditures last year, we literally borrowed money to pay the interest on money we’d borrowed.

Interest is basically the cost of renting dollars. So why would the federal government need to rent dollars from someone else? The federal government is the source of dollars—not of wealth, but dollars. Why doesn’t the federal government just “print” enough dollars to cover the $6.13 trillion it spends? Why do we need to borrow dollars? And who are we borrowing them from, anyway?

The Grand Dispossession

Stripped of our wealth while funding our destruction plus the slaughter of children. On the up side, the Christian Zionists will be rewarded for their collaboration (but they have to wait until death)

craignelsen.substack.com

To keep the American constituency in debt(power & control) to them???

 

[Street Juice]

To keep the American constituency in debt(power & control) to them???

We are literally borrowing money to pay interest on money we've already borrowed.

 

[LeroyDumonde]

The government borrows money from people who buy T-Bills. Printing up money can create inflation which is why the government prefers to borrow instead of print. Of course inflation could be avoided if the money supply grows slower than the GDP.

 

[Oddball]

The federal government is the source of dollars. Why does it need to borrow them?​

Because there were ZERO FRNs in circulation in 1913....They all had to be borrowed before being fraudulently passed off as "money".....The massive debt was all but inevitable.

P.S....The Fed isn't the gubmint...It's a private banking scam, that gets rich beyond avarice from creating debt.

 

[PeterPilot]

The taxpayers are the source of dollars.

The federal government has been spending more than it takes in for a century or more.

 

[Street Juice]

The government borrows money from people who buy T-Bills. Printing up money can create inflation which is why the government prefers to borrow instead of print. Of course inflation could be avoided if the money supply grows slower than the GDP.

The federal government spent $6.14 trillion last year.

Poverty level for a single person in the US is around $15k per year.

$6.14 trillion compared to $15k is like the length of I-80 from San Francisco to New York City compared to the width of your fingernail.

Who buys those T-bills? The Fed and its member banks. Where do they get the money? They don't. They merely add a few zeros in a database somewhere, then lend the "money" they just created out of thin air to the US treasury. It's exactly the same thing as just printing the money, but without the printing costs. It's a giant (((scam.))) Last year, we paid about $1.5 trillion in interest to these parasites.

 

[luiza]

Why do we need to borrow dollars? And who are we borrowing them from, anyway?

The nearer and nearer you approach bankruptcy --- and America has been there sometime -- the fewer number of fools you can find to borrow more money from .
If you then start printing your own imaginary money (dollars that have less and less positive value) the basic value of the dollar drops versus other currencies and you fall further into economic calamity ---- things costs more to produce and you get less sales revenue .
You become a Planet Money Pariah .

Which is why BRICS was mostly created and why you will shortly implode as an economic unit and suffer disastrously .
BRICS will replace you effectively . Completely .
More to do with simple economics than political differences .

And now it is just a matter of time before this all happens-- a few months false optimism from lower interest and then QE ---- more imaginary self created money to notionally support debt

Folllowed by BOOM and everybody ignoring you ,

As certain as tomorrow being Monday .

 

[justoffal]

The government borrows money from people who buy T-Bills. Printing up money can create inflation which is why the government prefers to borrow instead of print. Of course inflation could be avoided if the money supply grows slower than the GDP.

Perfectly said!

 

[luiza]

Perfectly said!monstrsted that the new “money “ leads directly

No .
printing imaginary money is itself an act of infllation unless it can be shown to directly increase profitable net extra value/ returns .
Almost impossible when you are already bankrupt .

 

[justoffal]

No .
printing imaginary money is itself an act of infllation unless it can be shown to directly increase profitable net extra value/ returns .
Almost impossible when you are already bankrupt .

The government has no choice but to print money because they are already spending more than the tax revenues.

Of course printing is just an acronym.... It's actually just a bunch of valuations typed out on a spreadsheet. It has the same effect however.

 

[luiza]

The government has no choice but to print money because they are already spending more than the tax revenues.

Of course printing is just an acronym.... It's actually just a bunch of valuations typed out on a spreadsheet. It has the same effect however.

Doubt that we effectively have much disagreement if we both see that the US is 100% bakrupt and that whatever dodges you use to persuade the Mugwumps otherwise , you eventually will stand alone with only your debt to feed you .

 

[justoffal]

Doubt that we effectively have much disagreement if we both see that the US is 100% bakrupt and that whatever dodges you use to persuade the Mugwumps otherwise , you eventually will stand alone with only your debt to feed you .

Yep.... We're almost there the dollar is effectively worth three cents. When it hits zero the government will be out of business. We can't be too far off. BRICS may just well be the ticket that does it.

 

[Hollie]

Right now, about 23 cents of every federal dollar spent goes to pay interest incurred from borrowing. So, of that $6.13 trillion the federal government spent last year, about $1.41 trillion went “to interest.” And since we borrowed money to cover expenditures last year, we literally borrowed money to pay the interest on money we’d borrowed.

Interest is basically the cost of renting dollars. So why would the federal government need to rent dollars from someone else? The federal government is the source of dollars—not of wealth, but dollars. Why doesn’t the federal government just “print” enough dollars to cover the $6.13 trillion it spends? Why do we need to borrow dollars? And who are we borrowing them from, anyway?

The Grand Dispossession

Stripped of our wealth while funding our destruction plus the slaughter of children. On the up side, the Christian Zionists will be rewarded for their collaboration (but they have to wait until death)

craignelsen.substack.com

Ultimately, the taxpayers are the source of federal dollars. The problem arises when the government spends more than it steals from taxpayers and thus prints the balance. That dilutes the value of existing currency, thus inflation and deficits.

 

[Street Juice]

Ultimately, the taxpayers are the source of federal dollars. The problem arises when the government spends more than it steals from taxpayers and thus prints the balance. That dilutes the value of existing currency, thus inflation and deficits.

No, the taxpayers are the source of wealth. We give value to the dollars through our commercial activity. Dollars are created out of thin air by the government printing "T-bills" and the Fed adding some zeros to the Treasury's bank account.

 

[Hollie]

No, the taxpayers are the source of wealth. We give value to the dollars through our commercial activity. Dollars are created out of thin air by the government printing "T-bills" and the Fed adding some zeros to the Treasury's bank account.

Obviously, not. The source of government money is taxpayer dollars. "T-Bills" are not dollars, they are not currency. The government doesn't make money (other than printing currency), financing government comes from taxpayers.

 

[Street Juice]

Obviously, not. The source of government money is taxpayer dollars. "T-Bills" are not dollars, they are not currency. The government doesn't make money (other than printing currency), financing government comes from taxpayers.

The US collected $4.4 trillion in revenue last year and spent $6.1 trillion. The borrowed the difference. When you pay interest on borrowed money, you are essentially renting dollars. Interest is the rent payment while you use the money. The US government has a choice: either print more dollars or borrow them from someone else. But no one has a big vault full of dollars. Dollars don't exist. All we have is pieces of paper that say "Hey! I'm 20 of those dollar things" or "Hey! I'm a hundred of those peso things." So when the gov "borrows" dollars, someone somewhere simply adds zeros to a database and viola more dollars just appeared in the world.

The dollars we send back in taxes are dollars that have value, which we've added with our labor and so on. But the dollars the Fed created out of thin air have no value. So they "steal" value from all the other dollars.

Last year we sent $4.4 trillion value-dollars to the government. The government sent $1.7 trillion of them to someone who originally sent us air-dollars.

You see how the grand dispossession works, now?

The Grand Dispossession

Stripped of our wealth while funding our destruction plus the slaughter of children. On the up side, the Christian Zionists will be rewarded for their collaboration (but they have to wait until death)

craignelsen.substack.com

We could have just added those zeros ourselves.

Revenues in Fiscal Year 2023: An Infographic | Congressional Budget Office

Revenues received by the federal government in 2023 totaled $4.4 trillion, of which half was receipts from individual income taxes.

www.cbo.gov

 

[Hollie]

The US collected $4.4 trillion in revenue last year and spent $6.1 trillion. The borrowed the difference. When you pay interest on borrowed money, you are essentially renting dollars. Interest is the rent payment while you use the money. The US government has a choice: either print more dollars or borrow them from someone else. But no one has a big vault full of dollars. Dollars don't exist. All we have is pieces of paper that say "Hey! I'm 20 of those dollar things" or "Hey! I'm a hundred of those peso things." So when the gov "borrows" dollars, someone somewhere simply adds zeros to a database and viola more dollars just appeared in the world.

The dollars we send back in taxes are dollars that have value, which we've added with our labor and so on. But the dollars the Fed created out of thin air have no value. So they "steal" value from all the other dollars.

Last year we sent $4.4 trillion value-dollars to the government. The government sent $1.7 trillion of them to someone who originally sent us air-dollars.

You see how the grand dispossession works, now?

The Grand Dispossession

Stripped of our wealth while funding our destruction plus the slaughter of children. On the up side, the Christian Zionists will be rewarded for their collaboration (but they have to wait until death)

craignelsen.substack.com

We could have just added those zeros ourselves.

Revenues in Fiscal Year 2023: An Infographic | Congressional Budget Office

Revenues received by the federal government in 2023 totaled $4.4 trillion, of which half was receipts from individual income taxes.

www.cbo.gov

You confirmed what I wrote. The government gets its money from taxpayers. The government prints money because it spends more than it takes in from taxpayers.
from taxpayers.

 

[Street Juice]

You confirmed what I wrote. The government gets its money from taxpayers. The government prints money because it spends more than it takes in from taxpayers.
from taxpayers.

Government printing money and government spending money are the same things. Both create dollars by adding zeros to a database somewhere. And that's it.

 

[Rambunctious]

You better hope you are dead and gone when the deadline to repay this debt. comes along.... every dollar the government prints must be borrowed from someone or someplace....