Quote:
Originally Posted by Guest
Who told China to buy US treasuries to join the club? We did. The World Bank, the International Monetary Fund, the Bank of International Settlements.
Japan holds a lot because of WWII, part of the agreement. Saudi Arabia does too, because WE developed their oil fields, part of the deal. We got petrodollars too...free money out of the ground!
We, the Fed, determine the rates and the value of the dollar, not some piddly country smaller than many states. China is being used for it's cheap labor. China isn't "really" in the big boys club, wrong race. They're being played too.
More taxes? You mean $1.2 trillion in new taxes? That's what we borrow every year. That's $3500 in new taxes for EVERY man woman and child, a family of 4 would pay $14,000 in new taxes every year.
Let that sink into your head, EVERY year, the government borrowing is making a family of fours share $14,000. Each family of 4 would have to pay $14,000 more a year to balance the budget. Government pays half a $ trillion a year in interest payments ($500,000,000,000). Interest rates are artificially low due to printed money to keep the debt interest serviceable.
You ARE right about one thing, the corporations DO run everything...and I do mean everything.
Corporations don't pay tax, their customers do. Raise their tax, the price goes up. You pay more. Nothing is free. You gonna add that to the $14,000 for balancing the budget? This whole recovery is fake, it's the result of spending almost $10 trillion, going $10 trillion deeper in debt.
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Your 1.2 trillion is a little high , but in the ballpark.
https://www.nationalpriorities.org/b...-101/spending/
Here is a breakdown of the 2015 budget.
https://www.nationalpriorities.org/b...-101/spending/
Social Security, and Medicare make up 2.25 trillion of the total budget of 3. trillion. They are considered Mandatory spending. Untouchable? When you add in military spending 609 billion, and the interest on debt 229 billion, you get 3.1 trillion of the total of 3.8 trillion. What are you going to cut? What about the off the budget items that were 244 billion in 2014? Are you going to cut that too from the budget also?
You are making an assumption that the tax increase will be spread equally among all families, which won't be the case. People that can afford it the most will pay more of the increase.
The second assumption is that corporations will pass along their tax increase to their customers. If people can't afford the products corporations are selling at the higher price, they won't buy it.
You can't increase taxes to cover the entire deficit. You are going to have to cut federal spending. You are also going to have to make changes in Social Security, and Medicare. These changes will be based on need. If people don't need it. They don't get it.
If the economy does better, people will do better. That is not the case, if corporations are doing everything to avoid paying taxes. Couple this with corporations with workers in the US not getting increasing wages, because they are doing better.
How would you get rid of the 1+ trillion dollar deficit per year?