Why We're Printing Money
Simply put, The Government wants to spend more money than it is able to borrow. Since the government has access to the Federal Reserve (FED) it simply directs it to print the money and then borrows it at a low interest rate.
When the government wants to spend more money in its annual budget than it gets from taxation, licencing, fees it simply borrows it by selling government bonds (U.S. Treasuries). The government then sells them, both domestically and to foreign interests, and receives the money which it uses on whatever it wants.
Eventually the owners cash in these bonds with the government and since it is defined as a loan they get their money back, with interest. Historically it has been a safe investment because the U.S. Government has never defaulted on its debt.
From 2008 to 2016 the government spending resulted in an annual deficit of over -970 BILLION! That is a deficit of almost 1 TRILLION per year and now we have a president who is an expert at defaulting and going bankrupt to lead us down the garden path.
The interest owed on our national debt exceeds the governments income from all sources combined. It however does not mean the USA will go bankrupt, It does not mean that we will need to be bailed out like Greece recently was. Simply put we can't default on our debt because the debt is in US DOLLARS and the government can simply have the Fed print all the money it needs, any time it wants to, to pay any amount it wishes!
It does however offer to let hyperinflation steamroller our economy into a pancake and potentially have people bringing vehicles full of cash to pay for a loaf of bread or gallon of milk. It can and probably will continue to devalue our money to a point that it is cheaper to use as toilet paper than it is to spend it to buy toilet paper.
The 10 states receiving the most in federal aid as a percentage of their general revenue, in order, were:
Mississippi, 42.9% federal aid as percentage of general revenue
South Dakota, 39.0%
New Mexico, 36.6%
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