Where is the USA getting the $$ for the stimulus package?

[Elias824]

so anyone want to mention also that, its not so much that this bill that's expensive but we will be paying interest on it for the rest of time.
http://en.wikipedia.org/wiki/F...ederal_Debt(gross).JPG
an interesting graph too, although a little old. Shows the ratio of debt to GDP, which is the biggest thing to look at in terms of debt. I believe with this new bailout we are close to our WW2 high.

http://en.wikipedia.org/wiki/Us_debt
Also the original article, man I love wikipedia

 

[GTKeeper]

To all the financial newbs out there Stunt included.

Let me paint you the picture.

Yes, the US is spending more than its taking via taxes.

HOWEVER this will NOT lead to inflation in the short term. We are in a massive deflationary cycle, which happens when debt needs to be reduced. Think of it is 'there isn't a whole lot of money out there to pay this massive amount of debt' = deflation.

Now, the money is coming from investors and other countries. There is a massive flight to the dollar right now (remember when a dollar was 2 pounds? now its 1.44?). Other countries are in dire straits, waaaaaaay worse than us, so they are buying up dollars = increase in dollar strength.

Short term expect inflation, once the money supply increases (through saving and spending less) then we might see inflation.

 

[EXman]

Originally posted by: heyheybooboo

Originally posted by: masteryoda34

Originally posted by: heyheybooboo
Around $300 billion is tax breaks ...

For people who don't pay taxes. :disgust:

I believe everyone pays FICA payroll taxes (where the relief is targeted) so what is your point other than trolling?

no that is incorrect.

You can make well up into 30K at least and pay no tax with kids. Hell when I was young married and had kids we'd get almost 5k back on a return and that was paying no federal taxes.

Man i miss that almost 5k check!

 

[winnar111]

Originally posted by: heyheybooboo

Originally posted by: masteryoda34

Originally posted by: heyheybooboo
Around $300 billion is tax breaks ...

For people who don't pay taxes. :disgust:

I believe everyone pays FICA payroll taxes (where the relief is targeted) so what is your point other than trolling?

Not people who don't work.

 

[Jaskalas]

Originally posted by: Fear No Evil

Originally posted by: Vic

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

Sorry, I missed it... what inflation? The discount rate is effectively zero, the fed is printing money like crazy, and prices aren't going up (and are actually falling for many items, like houses, equities, and durables). And why? Because we're on the precipice of a deflationary cycle. Sounds like you might benefit from an econ course.

Well this bill was just signed a couple days ago. It will take some time for the inflation to occur.

Wholesale inflation takes biggest jump in 6 months

 

[Oric]

FROM YOU !

 

[HardcoreRobot]

either they are printing money, in which case the value of it will drop accordingly (tho delayed)
or they are borrowing from its citizens, taking money that would have been spent in the economy wisely (people pay for what they truly value and what truly belongs in the market) and the government reroutes it into the economy unwisely (govt spends on whatever lobbies them the hardest, or what society pressures them to do (this last part is like welfare, everyone says to help the poor, but few are willing to put their wallet or time where their mouth is so they let the govt do it for them))

 

[LegendKiller]

Originally posted by: Jaskalas

Originally posted by: Fear No Evil

Originally posted by: Vic

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

Sorry, I missed it... what inflation? The discount rate is effectively zero, the fed is printing money like crazy, and prices aren't going up (and are actually falling for many items, like houses, equities, and durables). And why? Because we're on the precipice of a deflationary cycle. Sounds like you might benefit from an econ course.

Well this bill was just signed a couple days ago. It will take some time for the inflation to occur.

Wholesale inflation takes biggest jump in 6 months

And that has nothing to do with inflation due to monetary supply increases.

 

[43st]

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

It only causes inflation if people see it.. They've already spent trillions, you haven't seen any of it, and there has been no inflation.

 

[Modelworks]

It goes like this:

Treasury: Mr. President , we need your password.
Obama: CHANGE
Treasury: You want to change the password ? We need the old one first.
Obama: No the password is CHANGE
Treasury: yes sir, we understand you changed the password , that is why we need it.
Obama: The password is C-H-A-N-G-E
Treasury: Thank you sir, we can now add the proper zeros.
Obama: You added the zeros to the wrong side of the number !
Treasury: No sir, that is actually what the finances are.

 

[daniel49]

that change you can believe in is the nickle and five pennies you have in your pocket.

 

[Budmantom]

Originally posted by: daniel49
that change you can believe in is the nickle and five pennies you have in your pocket.

He promised "change", if you ask any liberal they will tell you that Obama is not one to lie.

 

[halik]

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

 

[heyheybooboo]

Originally posted by: palehorse

Originally posted by: heyheybooboo
Around $300 billion is tax breaks ...

The Social Security surplus over the next 2 fiscal years is around $618 billion and will cover the rest ...

I believe that the SS surplus was already allocated for other pre-existing entitlement programs. Therefore, the SS surplus will in no way, shape, or form, cover the new "stimulus" package(s). Wishful thinking.

Right now, even Congress doesn't know how the fuck they (we) are going to pay for all of this bullshit. They're just adding it to "the tab"...

It's not 'pre-allocated'. The surplus is hundreds of billions of dollars each fiscal year (to the tune of around $1.7+ trillion in the next 5 years).

I'm not saying I like the way it will be ""borrowed and expended"" but the 'free cash flow' amounts to $25 billion a month (and rising).

As I have said before I think the surplus should be loaned to state and local gov'ts at low interest for infrastructure projects.

This effectively guarantees the principle and provides a small rate of return. It provides additional future cash flow to the Fund when it will most be needed and helps us rebuild our infrastructure prior to that time.

 

[Special K]

Originally posted by: halik

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

How do we know that all of the stimulus money is being funded by the sale of US debt? Would there ever reach a point where the amount of stimulus money the government needs to raise exceeds the world's demand for treasuries? Would the government be forced to print money in that case?

 

[Elias824]

Originally posted by: Special K

Originally posted by: halik

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

How do we know that all of the stimulus money is being funded by the sale of US debt? Would there ever reach a point where the amount of stimulus money the government needs to raise exceeds the world's demand for treasuries? Would the government be forced to print money in that case?

Yes we can only borrow so much money, like I said earlier, china is no longer buying up us debt.

 

[Rustler]

Get ready for inflation then hyperinflation................................wooo hooooo!!!!

 

[zephyrprime]

Originally posted by: Elias824

Originally posted by: Special K

Originally posted by: halik

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

How do we know that all of the stimulus money is being funded by the sale of US debt? Would there ever reach a point where the amount of stimulus money the government needs to raise exceeds the world's demand for treasuries? Would the government be forced to print money in that case?

Yes we can only borrow so much money, like I said earlier, china is no longer buying up us debt.

The next step after borrowing more money from China is printing money AKA "monetization". Unfortunately, this money is created as debt. So printing more money actually causes us to go more into debt. This is why we're so scroomed.

http://economistsview.typepad....9/what_is_debt_mo.html
http://www.newsneconomics.com/...fed-is-monetizing.html

 

[Hacp]

Originally posted by: Special K

Originally posted by: halik

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

How do we know that all of the stimulus money is being funded by the sale of US debt? Would there ever reach a point where the amount of stimulus money the government needs to raise exceeds the world's demand for treasuries? Would the government be forced to print money in that case?

Sigh, when did Ron Paul brainwash half of Atot? Oops I mean PandN.

 

[zephyrprime]

Originally posted by: Hacp

Originally posted by: Special K

Originally posted by: halik

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

How do we know that all of the stimulus money is being funded by the sale of US debt? Would there ever reach a point where the amount of stimulus money the government needs to raise exceeds the world's demand for treasuries? Would the government be forced to print money in that case?

Sigh, when did Ron Paul brainwash half of Atot? Oops I mean PandN.

I dunno, I guess it happened when people realized that he was right?

 

[HannibalX]

Originally posted by: JEDI
THe banks are in financial trouble.

Who is lending us all this $$$ from both the Bush and Obama stimulus packages?

We're pulling it out of our lazy asses.

 

[Genx87]

Originally posted by: heyheybooboo
Around $300 billion is tax breaks ...

The Social Security surplus over the next 2 fiscal years is around $618 billion and will cover the rest ...

That surplus was spent decades ago.

 

[Vic]

Originally posted by: Jaskalas

Originally posted by: Fear No Evil

Originally posted by: Vic

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

Sorry, I missed it... what inflation? The discount rate is effectively zero, the fed is printing money like crazy, and prices aren't going up (and are actually falling for many items, like houses, equities, and durables). And why? Because we're on the precipice of a deflationary cycle. Sounds like you might benefit from an econ course.

Well this bill was just signed a couple days ago. It will take some time for the inflation to occur.

Wholesale inflation takes biggest jump in 6 months

Deflation warning bells ring louder

Key excerpt: "The government will report its key inflation index Friday morning, the Consumer Price Index, and economists believe the report is likely to show the first year-over-year drop in prices since 1955."

edit: BTW, wholesale inflation is a leading indicator. If it were rising for any other reason but the recent uptick in energy costs, I'd see that as a very positive sign for the economy.

 

[LegendKiller]

Originally posted by: zephyrprime

Originally posted by: Hacp

Originally posted by: Special K

Originally posted by: halik

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

How do we know that all of the stimulus money is being funded by the sale of US debt? Would there ever reach a point where the amount of stimulus money the government needs to raise exceeds the world's demand for treasuries? Would the government be forced to print money in that case?

Sigh, when did Ron Paul brainwash half of Atot? Oops I mean PandN.

I dunno, I guess it happened when people realized that he was right?

lol.

 

[RichardE]

Originally posted by: halik

Originally posted by: Fear No Evil
Nobody is, they are just printing money.. which causes inflation.. but there's only a 30% chance they will fail so its OK.

How about you come back to us when you get a college degree?

The money is paid by U.S. treasury bills, bonds and notes. Domestic and international investors buy them for their porfolios and actually with the yield being where it is, it's fantastic deal for the U.S.

I was coming in to post that, but you did.

:laugh: @ printing money. If that was happened you would see a brand new post WW1 Germany type economy.