When was the last time your Tax Dollars went to funding Deficit Spending?

Discussion in 'Political Opinions & Beliefs' started by akphidelt, Aug 18, 2011.

  1. akphidelt

    akphidelt Banned

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    For some reason, people keep thinking that the more the Government spends, the more taxes they will take. This is a simple question, with an obvious answer, but the point is to start up a conversation as to what "funds" deficits.

    When was the last time your tax dollars went to fund deficit spending?

    And on top of that...

    When was the last time your tax dollars went to pay off the gross national debt?
     
  2. Dan40

    Dan40 New Member

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    43 cents of every tax dollar goes to funding deficit spending. Not today's deficit spending, yesterday's deficit spending. Every day Treasuries are redeemed. They WERE deficit spending [loans] and when they're redeemed, today's tax dollars are used to pay them.

    Any more rudimentary questions you need answered?
     
  3. akphidelt

    akphidelt Banned

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    Hahahahahahahaha... what????????

    That is not true what so ever. And you call it a rudimentary question??

    Not a single one of your tax dollars goes to paying off yesterdays deficits (other than interest).

    This is what I'm talking about when I refer to how uneducated people in America are about our economic system!
     
  4. Dan40

    Dan40 New Member

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    As always, you're wrong. But consistent.
     
  5. Roelath

    Roelath Well-Known Member

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    Long Answer

    There is a Magical Printing Press inside the Secret Building in New Rome we call the Federal Reserve. In this Secret Building with their Magical Printing Press they create Magical Dollars that we as simply little mortals call Dollars. We mortals love our Dollars and we enjoy trading them for other products in the World. The Immortals who run the Magical Printing Press seem to keep making the Dollars which is simply astonishing! With these Dollars they seem to trade it with other Mortals sometimes our very own Government! The strange part is... With the Magical Dollars the Government recieves it's the same Magical Dollars we have... but they keep making more and more. I'm finding that every time the Immortals print more Magical Dollars they lose its value depending on how many are made and are in the open. Maybe that's why people seem to be taking more Magical Dollars for products compared to before because there are so many of them! Maybe these Magical Dollars aren't so Magical anymore when there are so many of them!

    Short Answer

    Inflation.
     
  6. akphidelt

    akphidelt Banned

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    Paying off previous deficits would mean paying off the debt. So you are very wrong here. But you will just straw man your way out of your lie.

    For those that are still interested, Dan40 is 100% wrong that your tax dollars go to previous deficits. Your tax dollars strictly fund Government expenditures and or Government programs. None of it goes to previous deficits.
     
  7. akphidelt

    akphidelt Banned

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    The Fed's are not allowed legally to purchase securities directly from the Treasury. So the treasuries have to be bought with some money before the Fed buys them. Now the trick is, what money is this "some money" that is purchasing these treasuries in the first place.

    Inflation is not a problem when you have 10% unemployment and a 75% capacity utilization. We have plenty of room for more demand.
     
  8. akphidelt

    akphidelt Banned

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    So if your tax dollars do not fund deficit spending or the national debt... then why are you guys constantly crying about it?
     
  9. Roelath

    Roelath Well-Known Member

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    I answered your question... The Government itself tells the FED to print Money and with it comes an invisible tax which is the devaluation of the Currency. So the Government does tax the people but, in a slight manner simply by holding onto US Dollars.
     
  10. akphidelt

    akphidelt Banned

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    So you are admitting your tax dollars do not fund paying off the maturing Govt debt or deficit spending? Let's clear that up first.
     
  11. Roelath

    Roelath Well-Known Member

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    Inflation is a Tax. Since inflation is a Tax therefore it's considered Tax Dollars... which pays for Governemnt debt and Spending.
     
  12. James Cessna

    James Cessna New Member

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    You have to understand the role of the Federal Reserve to answer this question.

    Check this out.

    The Federal Reserve has been roundly criticized lately.

    "The Federal Reserve is under fire after it revealed it gave a big chunk of its multi-trillion dollar Wall Street bailout money to companies not based on Wall Street -- or even in the United States."

    "Among the questions Sanders said must be asked: Has the Federal Reserve of the United States become the central bank of the world?"

    "Republican critics say the dual mandate is pushing the Fed to embrace potentially harmful stimulus measures to jumpstart job creation – specifically, a new round of so-called "quantitative easing." Critics worry the Fed's moves will lay the foundation for higher inflation, a weaker dollar and global economic instability".

     
  13. akphidelt

    akphidelt Banned

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    Inflation is not a nominal tax so it is not considered tax dollars at all. That is ridiculous. So how does something that doesn't exist pay for Government debt and spending?
     
  14. akphidelt

    akphidelt Banned

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    I guarantee you I understand more about the Federal Reserve than you will ever know in your life. The Federal Reserve is one piece of the puzzle, but it still requires the Government to spend money first.

    Now I ask you again, has any of your tax dollars been used for deficit spending or paying off the gross national debt?
     
  15. James Cessna

    James Cessna New Member

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    Sorry, akphidelt, but I do not respond to rude, self absorbed people!

    Develop some manners and then we can talk!

    [​IMG]
     
  16. akphidelt

    akphidelt Banned

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    I don't talk to people who include smiley face graphics in every post. It is embarrassing. And I would prefer if you did not respond to my topics because you bring nothing to the table except being an annoyance.

    If you want to have a big boy talk, drop all the annoying pictures and stop posting other people's articles. You have fingers, you can tell the story yourself.
     
  17. Roelath

    Roelath Well-Known Member

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    Obviously you don't see when the US Dollar supply is increased and it isn't given to the general public equally but, to certain groups it creates Economic Inequality.

    If the Government decides to have the FED print money and give it to Congress it allows for them to secretly Tax the general holders of the US Dollar. Picture this...

    Lets just say the US Dollar in the Marketplace is at 10 Trillion dollars completely. The Government has zero dollars... but decides to creates 4 trillion out of thin air and give it to themselves. What happens to the 10 Trillion Dollars already in circulation currently? It becomes devaulued because more US Dollars have entered the Marketplace. Since it becomes devalued the overall Weight of the Dollar is decreased which in effect the Government gets the bonuses of Inflated Money... not the people.

    So the $5.00 bill is now a $4.95 bill because Inflation has devalued it... So for every 5 Dollars someone holds the Government has taken 5cents from that person.
     
  18. akphidelt

    akphidelt Banned

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    Yes, but what you inflation phobes have a problem understanding is that THERE ARE MORE DOLLARS!!! The only people that suffer from inflation are those that do not get a return on their money. Inflation allows the country to be a net gainer on investments, otherwise you just have winners and losers who pass around a stagnant amount of money.

    Even under the gold standard they frantically tried to find more gold in order to spend and produce more goods and services. Inflation is not a tax on the economy, it is a tax on unproductive members of society who store money in their mattress.

    And the quantity of money does not determine inflation, the velocity of money with the quantity of money does. It is driven by actual demand. So in a recession when the velocity decreases, conventional wisdom says that the economy can handle a large quantity of money to produce the same results.

    The key point of inflation is to not exceed our productive output. Think of it like this...

    You own a restaurant and can produce 100 meals for $1000. So you only sell 80 meals. This means you are at 80% productive capacity. So you can handle 20 more meals with out having to increase prices. Now extrapolate that simple example to a macroeconomy and you can see that a country has much more production than needed before inflation occurs. Especially when unemployment is at 10%. We have much larger room for more currency with out experiencing runaway inflation.
     
  19. Roelath

    Roelath Well-Known Member

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    The entire argument persented was whether or not Taxpayers actually pay for the deficit and debt. I presented Inflation as the Tax the Government imposes and to say otherwise is nonsense considering your entire argument is based around the idea that holding money is idiotic and something about "velocity" which is pure nonsense in trying to dodge an answer. You see we all in live in this WHOLE wide World and when there more of something the price of the overall product itself drops whether it's gold, silver, diamonds or dollars. The amount of Printed Dollars that is being created then injected into the Marketplace creates a devaluation of the Dollar. These printed Dollars first go to the Government and that from itself is theft because the circulating currency never increases until they make it appear... while first having the benefit of the newly printed Dollars.

    Your case against Inflation being tax is absurd and using "Restaurants and Meals" to prove a point when the Marketplace is far more dynamic and well beyond our grasp is laughable.
     
  20. akphidelt

    akphidelt Banned

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    Lol, so you don't believe in productive capacity or velocity of money?

    You think regardless of the velocity of money that simply adding more money to the supply is inflationary?

    WOW!! You would win a Nobel Prize with this theory debunking the entire history of economics.

    And the restaurant example is a perfect example of how adding more demand does not always result in inflation.

    And like I told another poster, based on your theory the economy would best function with $1 in circulation since every dollar added is inflationary, which according to you is bad.
     
  21. bacardi

    bacardi New Member

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    tell that to the savers.....its a tax on their purchasing power as the dollar falls in value everytime the government prints more currency!
     
  22. freakonature

    freakonature Well-Known Member

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    For all of your touting of your supposed economics education, this is an extremely ignorant statement. You have ceased to have relevance.

    Wow, you are right. All we have to do is produce 20% more stuff for the same value in return. Brilliant!
     
  23. bacardi

    bacardi New Member

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    the nonsence you are describing can only work in the US because other central banks are hoarding dollars thus keeping inflation in check.....no other nation can get away with this.......this is why I keep saying the US has an unfair advantage and so this reserve status nonsence needs to stop...infact the process is already underway as several nations are already trading goods in currencies other than the US dollar!
     
  24. akphidelt

    akphidelt Banned

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    Care to elaborate on how the statement is incorrect?

    I didn't say the return is $1000, I said it costs $1000.
     
  25. akphidelt

    akphidelt Banned

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    America is the world's biggest customer. It's not like we aren't doing China or Japan any favors with our mass consumption. If they want to rid off the US, we will have to start making the goods here.
     

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