Didn’t it just come from taxes. I know they claim there’s never any money but there’s always money, they just don’t to use any of it.
They’re always claiming they need to raise taxes but they don’t, they just need to spend them. Also possibly maybe they shouldn’t give contracts to their chums as backhanders. Maybe then they get better deals.
No, Treasury directed the fed to issue bonds and run those loans through banks and businesses. When Congress spends money, it spends it into existence- it doesn’t have a pool of dollars that people have sent in somewhere.
For that matter, when you pay your taxes, the money is used to zero out the bonds (again, in the Fed’s ledger) used to issue it. Remember, money in circulation is (from the POV of the fed) a liability on its books.
Didn’t it just come from taxes. I know they claim there’s never any money but there’s always money, they just don’t to use any of it.
They’re always claiming they need to raise taxes but they don’t, they just need to spend them. Also possibly maybe they shouldn’t give contracts to their chums as backhanders. Maybe then they get better deals.
But, but, but … how could big politically connected companies ever be able to be competive in the Free Market without subsidies???
No, Treasury directed the fed to issue bonds and run those loans through banks and businesses. When Congress spends money, it spends it into existence- it doesn’t have a pool of dollars that people have sent in somewhere. For that matter, when you pay your taxes, the money is used to zero out the bonds (again, in the Fed’s ledger) used to issue it. Remember, money in circulation is (from the POV of the fed) a liability on its books.