Thinning Wallets Jul 14, 2005 1:25:58 GMT -4
Post by turbonium on Jul 14, 2005 1:25:58 GMT -4
4. Turbonium says government borrows money from federal reserve, and repays with interest. This is partly true! Turbonium does not say that all profit made by federal reserve is returned to treasury each year. I and others here say this, and turbonium does not answer. Why not? What motive does he have, not to tell us this?
What is my motive? How about, where is your logic? Think about what you are saying here......
You say - the Gov't includes the Federal Reserve AND the Treasury . So the profits made by the Federal Reserve (Gov't) from the interest it charges (to the Gov't) are returned to the Treasury (Gov't). So you say it works out fine because that interest (the "profits") is still staying within the Gov't. But you are missing an important detail - where do these recycled "profits", this "extra money", actually originate? - from Joe and Jane Q.Public, the taxpayers!! We have now become the beasts of this burden, without even being the cause of it all!
Turbonium says government is in debt because federal reserve charges interest on money created. This is false! Interest paid to federal reserve in excess of expenses is returned to treasury
No, it is true. As I said above, the system does not remain as a closed, sustainable cycle as you state. The interest paid to the Federal Reserve comes from taxes paid to the Gov't as taxes, by the citizens,The interest on the debt keeps increasing despite the taxpayers forking over increasing perecentages of their income.