The National debt is not a Congress issue.

[ricksfolly]

The Fed Reserve, not the president, not Congress, provide the extra money needed to cover the budget deficit every year, and it's automatically added to the National debt. Makes sense too, because all Government bills have to be paid when due. Each year starts with no carry-over deficit, starts with a clean slate.

ricksfolly

 

[Missed AB]

My wife's spending bill on the credit card is not her issue because I pay for it...

Maybe, I don't understand you point?

 

[ricksfolly]

My wife's spending bill on the credit card is not her issue because I pay for it...

Maybe, I don't understand you point?

For some reason, and I don't know what it is, Congress is voting to raise the national debt to balance the 2011 budget deficit, knowing full well that the Fed Reserve has already taken care of it, like they do every year. Why the obvious farce? I have no Idea.

Here is proof from the Department of the Treasury ( National Debt) and the Congressional Budget Office (US budget deficit) that the deficit is paid by the Department of the Treasury... Where they get the money isn't clear

2009 US budget deficit.... -$1.412.5 trillion overspent
2008 US budget deficit....... -$458.5 billion overspent

2009 National Debt..... +$1.412.5 trillion added to National Debt
2008 National Debt..... +$458.5 billion added to National Deb

As you can see the minus numbers of the 2008 and 2009 budget deficit are the same as the plus numbers added to the 2008 and 2009 National Debt.

Maybe they're all in denial, or maybe it's a long time brotherhood ritual, or maybe they just don't know or care.

ricksfolly

 

[oldreliable67]

For some reason, and I don't know what it is, Congress is voting to raise the national debt to balance the 2011 budget deficit

You're confusing the debt limit with the deficit. Not the same thing at all. The debt limit is the statutory maximum that the US can borrow, as determined by congress. Think of it in the same way you would a credit card limit, only hugely bigger. The deficit refers to the amount by which government expenditures exceed receipts in a fiscal year. Think of it in the same way you would your annual income versus how much you spend. You spend more than you make? You have to borrow to make up the difference, hence a deficit. Back when we spent less than our receipts, we had a surplus, hence the only borrowing was to roll-over existing debt.

 

[Blue Dog]

As Ron Paul said End the Fed. Why?

1. Too much control over interest rates. When one has the power to manipulate the rate against market forces, the wealth created can be illusionary.

2. Fractional reserve banking allows a the institution to loan out 90% out while only keeping 10% on reserve. Example:

The person in front of me dpeosits 1000 dollars in the bank. As the next customer that 1000 dollars allows the bank to loan me 9000 dollars. If the average person did this it would be counterfeiting. In banks money does grow on trees.