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  1. #1
    Join Date
    Jan 2005
    Location
    Columbia, Mo GO, TIGERS
    Posts
    899
    If the feds have a magic checkbook that writes hot checks that always clear, and when they run out of moolah they can always print more, then why are taxes necessary?

  2. #2
    Join Date
    Mar 2003
    Posts
    7,323
    just think of the fed as a large scale model of your household. these days, you can sign up to get your checking account linked to a line of credit. if you dont balance your checkbook, you can overdraw and it gets paid by the loan. to get this service, you must have a traceable source of income (taxes), and eventually pay the loan
    (national deficit)back. if you didnt pay the loan back, your checks would no longer be good and no bank would do business with you. eventually, you would be broke and homeless. kinda the same deal, except there are many currencies around the globe that not only depend on our economy, they bet their money on it. if you ever travel abroad, you would see how other countries follow our economy on a daily basis. there are many times when our economy is doing so well that it is much cheaper to vacation lavishly abroad then to go to a local resort by car! we take a ski vacation every year and always follow the money.

  3. #3
    Join Date
    Jan 2005
    Location
    Columbia, Mo GO, TIGERS
    Posts
    899
    ya say that "if ya don't pay back the loan, eventually ya go broke." true enough, BUT every couple of years now they gather the castrati choir and harem eunuchs otherwise known as the US Congress to raise the debt ceiling. we ain't denting the principle amount owed. to the contrary, it is setting new records... that the interest will never be fully paid is a mathematical certainty. consider the nation as a macrocosm siimilar to the household microcosm? broke and homeless? yup. hey, what was that famous quote by Thomas Jefferson, on this very subject? I'll see if I can find and post.
    My intemperate remark on the nature of those reptiles in the House and Senate notwithstanding, let me interject
    RON PAUL for PRESIDENT! For a good laugh, see excerpts of Commander- of- the -Solar System Sir Alan Greenspan's answer to a question posed to him last week by Rep. Paul. It's at http://www.prudentbear.com found toward the end of the latest weekly installment of Credit Bubble Bulletin.
    Actually the answer to my question lies neither in current account nor fiscal deficits, or even currency exchange rate fluctuation.

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