tag:blogger.com,1999:blog-8897997766931633186.post8084437796069923785..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: The Debt LimitBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8897997766931633186.post-13527163450666023642016-11-28T16:15:11.907-05:002016-11-28T16:15:11.907-05:00We need to be very careful with the GDP rates, as ...We need to be very careful with the GDP rates, as there is fair amount of uncertainty over these things, so just need to make sure we pull it all very well to gain. I don’t worry too much over anything and due to OctaFX broker, I am getting enough support. This comes directly with the gigantic rebate program where I get 15 dollars profits per lot size trade which is even with the losing one, so all fairly good and handy to work with!Santamnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-87363648529442047092011-08-04T08:21:48.201-04:002011-08-04T08:21:48.201-04:00Anonymous 2:
The government can use taxes to pay ...Anonymous 2:<br /><br />The government can use taxes to pay down principal. Why not?<br /><br />It is true that deficit financing must be borrowed. By definition, if a budget deficit is funded by raising taxes, then it is no longer a budget deficit. Interest, on the other hand, can either be borrowed or funded out of current revenues--out of taxes. <br /><br />The basic account for these things is that current revenues include things like taxes or user fees. It does not include receipts from borrowing.<br /><br />Current expenditures includes purchasing goods, paying salaries, and paying interest. It doesn't include paying down the principal on debt.<br /><br />A deficit exists when revenues are greater than expenditures. <br /><br />It can be funded by borrowing or asset sales. <br /><br />A budget deficit funded by borrowing increases the national debt.Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-68482724405353109572011-08-04T08:15:43.009-04:002011-08-04T08:15:43.009-04:00Tom Grey:
Under the current setup, financing gove...Tom Grey:<br /><br />Under the current setup, financing government expenditure by money creation still involves the issue of additional debt by the Treasury. The Treasury sells it to the general public, and the Fed buys it from the public. While the general public serves as a middleman here, the Treasury still has issued the debt, and debt held by the Fed counts under the debt limit. While that can be changed, so can the debt limit.<br /><br />The Treasury can directly issue currency, but Treasury currency takes the form of debt. It is just a Treasury note that doesn't bear interest. I don't know how the Courts would rule, and clearly, Congress could exempt Treasury currency from the debt limit by legislation, but they can just raise the debt limit.<br /><br />I favor explicit default over inflationary default. I think the quantity of money, whether issued by private banks, the Fed, or the Treasury, should adjust to meet the demand to hold it given a level of money expenditures on output (GDP) that remains on a slow, steady growth path. Having the Fed (or Treasury) create money based upon the politicians desire to fund spending is wrong.Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-56795875264863610222011-08-04T03:59:26.958-04:002011-08-04T03:59:26.958-04:00Principal on the national debt can not be paid wit...Principal on the national debt can not be paid with taxes. That is why the national debt will never get paid and that is why principal payments on maturing debt is not considered a Govt expenditure. Interest and deficit spending have to be "borrowed" in to existence because they don't actually exist.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-58036317266588765422011-07-14T03:09:17.290-04:002011-07-14T03:09:17.290-04:00What about printing the money?
The Treasury, witho...What about printing the money?<br />The Treasury, without new taxes and without new borrowing, can just print the money to pay its obligations.<br /><br />This may well cause inflation, later, but is legal and available today. In fact, there could be a 100% tax holiday and all the gov't could be run by printing money -- I think Zimbabwe is trying that last year.<br />I don't advise it; I'd prefer spending cuts.<br />But I'd rather more money printing than taxes.<br />Tom GreyAnonymousnoreply@blogger.com