Except that that's not how it works at all. State and local government needs your tax dollars, but the Federal government does not. They own the currency. Think about this. Notice how the government doesn't need to sell War bonds any more? Trillions spent on wars in Afghanistan, Iraq, Syria...etc.

Paid for with bonds sold by the Federal Reserve (and with taxes). They aren't called "war bonds" because that was a marketing gimmick for just selling, you know, bonds.

How does the Federal government pay for goods and services while running a deficit? (this is rhetorical) They can do so because they can simply "print" whatever they need. It's a careful balancing act, because too much printing will cause massive hyperinflation. they never run out of money

BTW, you can see this on a month by month and year over year basis directly on the Treasury site (for now...Taco might take it down at some point): fiscaldata.treasury.gov/americas-fin...

"Printing" money increases the money supply, which is something the government CAN do, but only does for specific reasons. The way that the government can run deficit spending is by selling Treasury securities. Taxes and revenues from these securities are what funds government outlays.

The government doesn't increase the money supply, banks do. Banks create monetary flow and velocity of M1. V = PT / M

Banks distribute the money that the government prints via the Treasury through contracts with the Federal Reserve.

Which is what actually constitutes the majority of the "money supply". A simplified version: www.youtube.com/watch?v=bPq2...

But you are talking about something else. That's not what deficit spending is based on or uses. The $7 trillion currently on deck to be spent in 2025 comes primarily from tax revenues and the rest of debt issuance.

I'm talking about how money actually works and how Federal spending isn't the same as "household budget" spending. When you own the currency, you literally do not need any other artifices. You "could" do whatever you want....it would wreck the economy if you decided to print 100 trillion dollars.

Yes, and it would wreck the economy if you didn't pay who you owed too. That's what default means. Yes, the US could zero the debt. Yes, the US could mint a $1 trillion coin. Both are stupidly suicidal economic moves.

Taxes are virtually irrelevant in that equation.

Tax revenues constitute the vast majority of yearly outlays. The current spending deficit is under $2 trillion with tax revenues of about $4.3 trillion. The spending budget is $7 trillion. So, the difference will come from borrowing by selling securities.

And you seem well aware enough to know that the "debt ceiling" is an artificial political device.

BTW, the debt ceiling is just a constraint on borrowing. Yes, it is a political device but if the debt ceiling is hit and the government cannot pay bills it already contracted, then it defaults on those debts.

The U.S government has never defaulted once....now running a 20 trillion dollar deficit, how do you imagine that's possible?

The US has come close thanks to the artificial constraints of the debt ceiling. Also, the US doesn't have a $20 trillion deficit. For FY25, the deficit is about $2 trillion. Deficits are annual. Debts are cumulative. Debt ≠ deficit

The US can never default on it's debts.

Yes, it can. What a bizarre thing to say. If the US doesn't pay who it owes, that's a default.

Sure is. But that doesn't change the reality of how that money is moved around and spent. Majority comes from taxes, the rest comes from debt. Expanding money supply comes through open market operations to respond to a crisis.

Taxes are used to cool or heat the economy and maintain an adherence to the monetary system in place. They are utterly unnecessary to the issuer of said currency.

Taxes constitute the vast majority of revenue for the Federal government. I mean, you can literally see this on the balance sheets. Revenues versus outlays.

Reread what you just wrote. Line by line and think about it. There is no "borrowing" when you own the currency.

That's really not how it works. The US government borrows by spending debt. That debt is purchased by entities which then give up some of THEIR money to the US government to hold in exchange for an IOU with interest.

In a democracy the government is the people but that doesn't work well in the USA because most the people won't vote ...

That’s actually quite the opposite. It is government funded. That’s why the federal government runs a deficit.

Who owes the debt?

🎯🎯🎯💯💯💯

And it’s not funded by the rich who don’t pay or grossly underpay. Migrant workers contribute more to our budget than the überwealthy.

Stop spending it on fascist goons who's only goal is to get retribution on people who hurt the criminal orange Dear Leaders fee-fees.

Newsflash: ‘government-funded’ = our capital. Billionaires’ billions? Just sums borrowed from the population matrix. Without the majority (us), their net worth equation collapses. This is proof that we’re the real principal in this interest game. Algebra never lies, folks. MAGA can’t carry the one.

That would make a great Tee shirt 😂

So, use it it pay for health care, fire departments, roads, education, a dignified retirement, and things that help everyone to lead a safe life.

That sign is from a mega-MAGA company in Longview, WA. They have put many divisive and sometimes horrific messages on their board over the years. They would probably be angry to see any of their messages interpreted as supporting the left. So… well done. 😆