Where does the money come from

[gonefishie]

I am not trying to start a political discussion............just have a thought on where does the money for these bail outs come from? The word I've been hearing is tax payer money. Is there a giant tax money account that the gov. writes checks with? If not, wouldn't additional taxes have to be collected before money can be given? My taxes haven't gone up. Does the gov. just print more money or borrows from other country?

 

[oops!]

Re: Where does the money come from

taxpayers......yup....a giant account.

it also comes from savings bonds put out by the government.....i.e us savings bonds.........but...its your money.

 

[KurtG]

Re: Where does the money come from

Haven't you heard the phrase mortgaging our grandchildren's future? That's what we get for having the 'me' generation in control at present. The country will have a $10 trillion deficit that future generations will be paying to finance the interest on (a large share to foreign countries).

 

[Bob_VT]

Re: Where does the money come from

Funny you should ask...... at Ft Knox in a secret underground vault there is the worlds largest mattress ...... I know you understand that concept

 

[angus63]

Re: Where does the money come from

Like my wife and children believe, the money fairy!

 

[Tail_Gunner]

Re: Where does the money come from

Haven't you heard the phrase mortgaging our grandchildren's future? That's what we get for having the 'me' generation in control at present. The country will have a $10 trillion deficit that future generations will be paying to finance the interest on (a large share to foreign countries).

Overly simplified...we are 10 trillion in the tub...and we generate about 1.3 trillion in revenues.....?????? UMMM Now maybe if we had a few oil rigs up in Anwar we might be able to chase that GORILLA......

We are not doomed..there are numerous resources that could be tapped to eliminate this insolvency but i dare not say to much more or .......POOF this thread will go away..

 

[oddjob]

Re: Where does the money come from

I am not trying to start a political discussion............just have a thought on where does the money for these bail outs come from? The word I've been hearing is tax payer money. Is there a giant tax money account that the gov. writes checks with? If not, wouldn't additional taxes have to be collected before money can be given? My taxes haven't gone up. Does the gov. just print more money or borrows from other country?

EDIT

 

[JB]

Re: Where does the money come from

There is roughly ten trillion in gold stored at Ft. Knox. The precise amount varies with the commodity price of gold. Other assets of our government (mainly real estate) are worth somewhere in the vicinity of a quadrillion bux. That is a thousand trillion.

We taxpayers are still paying interest on the money borrowed by the Fed to finance recovery from the great depression and to finance WWII. The cost of loans and grants to finance recovery from whatever you call what we are in now will be added to that debt. It will exceed 5 trillion before it is over.

On the bright side (if there is one), the dollar borrowed in 1935 is now worth about $.07 due to inflation. If inflation continues at historical rates a dollar borrowed today will be worth about a dime in 2020, and GDP will exceed a hundred trillion bux.

 

[jinx]

Re: Where does the money come from

The dollar is no longer tied to gold, nor are other major currencies. They are fiat currencies--not that kind of fiat--but money that is valuable because the government says it is.

The money supply grows when debt is created, so we are going to have a lot more dollars floating around. That is why the great concerns over inflation.

Simple explanation, but you get the picture.

Jinx

 

[piperjack]

Re: Where does the money come from

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