Quote:
Originally Posted by Villages Kahuna
I don't think you're missing anything. Other than the fact that for the last decade or so our government has spent amounts that so far exceed our collective ability to pay for the spending that we have become the largest debtor nation in the history of the world.
You're right. More jobs=more money...the thing that has to change is your last few words, "...to the government". Until government spending decreases, there is no other alternative than more of our hard-earned money going back to the government.
We're near the end of the line of being able to "borrow our way" out of this problem.
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Fact One - Government spending never decreases.
Fact Two - New laws each year add to the number of federal "obligations" that occur.
Fact Three - There has never been any "surplus" funds at the Fed. The last time the federal debt was under $1billion was in 1863 - and what was a dollar worth then compared to now? (see
http://www.treasurydirect.gov/govt/r...t/histdebt.htm)
Fact Four - You make a dollar available to a federal politician, and s/he spends it and more.
So, giving the fed more money means the fed just spends more, and goes deeper in debt because none of is it real until some special interest group threatens to vote elsewhere.
The bottom line - the fed can have whatever it wants, as soon as it give up something else dollar-for-dollar. Anything less screws all of us.