Where does that bail out money come from?

Dec 04

With all Motrin pm coupon of the Strattera 25mg - 60 pills bail outs (read hand outs) from the Actos 15mg - 90 pills federal government Cymbalta 20mg - 30 pills going on these days I thought it would be prudent to look at where the money for these comes from.  Let’s be clear on something first.  The government is not an engine of wealth.  They can create money but money does not always equal wealth.  So, the government recently approved an 800 Billion dollar bailout of the financial system.  Where did this money come from?

They could raise this money several different ways.  The first would be to print more money or inject money into the system.  This comes from the government right?  Well, initially it would seem that way but when they put new money into the economy it causes inflation.  In other words, if you were holding a dollar in your hand when the government does this, your dollar would be worth less, therefore it can buy less.  So really, that money is coming out of your pocket.

The second might be issuing government bonds that they would eventually repay.  This seems nice.  The government gets money from you promising you the money back plus some interest.  The problem arises when the government takes this money and uses it in a way that does not produce income (like giving it to states so that the states can hand it out via social welfare).  Where is the government going to get the money to pay you back then.  Oh wait, they can print more money, and that comes from you too.  Can’t win for losing!

The third way might be to raise taxes.  This is actually income for the government.  The only problem with that income is that it comes from your pocket.  So in this case they are taking money directly out of your pocket and spending it the way they see fit.

So, any way you slice it, the money the government is using to bail out our financial system, our auto industry, and possibly some of our states is coming from your pocket.

This would be like me going out and running up a huge credit card tab and then coming to your house and taking money out of your wallet.  Then going to your neighbors house and doing the same thing.  And after going to enough houses I would have enough to pay my bill.  Obviously I can’t afford everything I want myself.  You would probably tell me that I need to learn to cut my spending and do a better job of budgeting.

Is this how you would want your money spent?

Brian

6 comments

  1. Nice… love it!

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    Heck no! But what Amoxicillin and Tenormin 100 mg clavulanate potassium Doxycycline 100mg - 180 pills side effects in the Diovan 40 mg name of all that is sane can I actually DO about it? The thing’s already been passed, the democratic “redistribution of wealth” president has been elected… I guess my current policy is “live, let live, and get to the UK as soon as possible, it may not have a better financial system, but at least I could live in Oxford.”

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    Actually, this is Requip 1 mg not true. Although the Eurax 20gm - 3 creams three ways Lotensin 10 mg that were Diovan 40 mg previously mentioned would take money from the taxpayers pocket, there is a fourth way that the government gets the money for the bailouts. By selling protection and securities to other countries. although our economy is weak right now, our military is still the strongest in the world, and countries around the world are willing to spend good money to get the protection of our military.
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    Brian /

    Jon,

    Can you Buy Viagra Minocin 50mg - 45 pills Professional Online be more specific? What is Buy Stromectol Online not true?

    Selling securities Levothroid 50mcg - 120 pills to other countries is another way the US Government raises funds but what they are essentially doing is selling ownership of this country. This is not a good option. Think about what would happen if all of a sudden we couldn’t pay them. Either we would have to raise money by one of the above mentioned ways to pay or that foreign country would essentially own part of the US until we could repay. They are lending money to us so we are in debt to them. The debtor is always slave to the lender.

    Also, in the article you provided states that one of the reasons the government can keep spending tons of money is that they can keep printing it.

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