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Economy

Sam1

(498 posts)

6. The Federal Government does not have to obtain money (American dollars) from any one.

Reply to Tansy_Gold (Reply #3)

Fri Jan 6, 2012, 02:34 PM

Jan 2012

You state: "The government only obtains money by taking it away from those who earn it, through taxes, fines, fees for services (postage, passports, use of public lands, visiting national parks, etc.)".

Since they issue it and they issue it by spending it and giving it away the Federal Government is a creator of money not a user. As long as the dollar is freely floating fiat money the Federal government can not run out, go broke, or default. In fact with out Federal government debt there would be no savings in the private sector.

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Debt Is (Mostly) Money We Owe to Ourselves [View all] phantom power Dec 2011 OP

Well, correct me if I'm wrong, but Tansy_Gold Dec 2011 #1

I own not one dime of government securities, which is how we finance the national debt. mbperrin Dec 2011 #2

Well, that's pretty much what I meant Tansy_Gold Dec 2011 #3

You've said it well, and flawlessly. mbperrin Dec 2011 #4

The Federal Government does not have to obtain money (American dollars) from any one. Sam1 Jan 2012 #6

Please cite the economist and formula that shows that government debt creates savings in the private mbperrin Jan 2012 #10

You have a degree in economics and have never heard (or studied) the chartalist perspective? jtuck004 Jan 2012 #18

I see now. It's the rather old fashioned notion that money is meant to be a store of value. mbperrin Jan 2012 #19

Yep, goods and services much more modern. Better go round up some goats jtuck004 Jan 2012 #20

Didn't read a word, did you? The money is a CLAIM for goods and services. mbperrin Jan 2012 #21

What really has value is human potential, not goods and services, and not jtuck004 Jan 2012 #22

I posted this in response to someone else. JDPriestly Jan 2012 #9

This is a little different because Tansy_Gold Jan 2012 #12

Money from the Social Security Trust Fund which was created because JDPriestly Jan 2012 #14

Exactly. And furthermore, Tansy_Gold Jan 2012 #15

So, if you can afford it, invest for yourself also. JDPriestly Jan 2012 #16

If you have paid your payroll taxes -- your Social Security taxes -- your old-aged JDPriestly Jan 2012 #8

I pay the Teacher Retirement System of Texas. mbperrin Jan 2012 #11

Repudiate the national debt and let the chips fall where they may. Or Blue Hen Buckeye Jan 2012 #5

I wonder what portion of the debt is owed to the Social Security Trust Fund. JDPriestly Jan 2012 #7

About 27-30% from memory dmallind Jan 2012 #13

SSA Trust fund = $2.6 trillion - total debt now over $15 trillion banned from Kos Jan 2012 #17