Where Did the Debt Come From?

// Thanks for watching everyone. Watch another great video by Michael Linden, where he answers the question, "Did the Stimulus Work?": http://www.youtube.com/watch?v=ESFVnZ... //

For more, go to http://www.americanprogress.org.

We hear a lot about our debt. And it is a pressing issue. But where did it come from? Michael Linden, the Center for American Progress's Director of Tax and Budget Policy, looks at what happened in the 10-years since the Congressional Budget Office projected a massive surplus.

See the data at http://cbo.gov/publication/41463

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[Zakdayak]

OK...which statement would that be?

Because when I replied to you, that's the post I was replying to and referencing.I haven't seen any of your posts before.I don't see a damn thing there.

And of course, you have no quotes. So, you are simply lying.

The Federal Reserve CANNOT make a profit BY LAW. Apart from a 6% on the fee charged regional member banks to give to members (the stocks can't be traded) any further monies generated are remanded to the US Treasury. The IOU's are an accounting trick

[4thstuning]

You left out my other statements that do address intragovt debt so whom you think you're fooling is apparently just you - and it appears to be an easy task too. Everyone else can read the thread and reach their own conclusions. The "printed" money you refer to is authorized by the private Federal Reserve System in exchange for govt IOU's, i.e. the govt borrows it from the Fed and by law must pay it back. The govt can't print money...yet :) Again read something to learn something.

[4thstuning]

Wrong on all counts. I did discuss SS and its trust fund is intragovt debt - happy retirement :) The SS decision I referred to occurred in 1960 from a decidedly liberal court. 1/2 of Scotus today are libs. Putting SS money into the general fund occurred under LBJ - which I don't support. T-bills benefit from the dollar being the world's reserve currency - a bad deal for everyone in the long run. Read some economics before you get further humiliated by your ignorance.

[Zakdayak]

OH, you didn't ignore it?? Cuz I didn't see a single mention of intragovernmental debt at all. You don't know what that is, do you?

The SCOTUS is filled, I'm sorry, with Conservaturds. What you are saying here is that you agree when a branch of the government tells you that the money you pay into the trust fund is there's to spend on wars. What a jolly day for America.

T-bills are currently the world's number 1 investment - so WTF are you talking about? You don't understand the issue at all.

[4thstuning]

I ignored nothing. Our military offense budget can certainly be cut. Past legislation can be overturned - or ignored, like our bill of rights or the rule requiring a federal budget. Social security is a privilege, not a right our Supreme Court says - besides the t-bills are rapidly becoming worthless. Everything, including borrowing, well be stopped when the creditors stop lending and Bernanke has to print everything. Many countries have been down this same road. Who's being ridiculous?

[Zakdayak]

That's ridiculous. If revenues fall, the gov't still has to keep following bills already passed by Congress. No one cancels a submarine, an aircraft carrier, the TSA inspections, or block grants to the states because of a recession.

When people earn less, as in bad economic times, they pay less in taxes as well as start to receive benefits.

So, saying that borrowing has one one source (an increase in expenditure) is patently false.

Also, you are ignoring intragovernmental debt.

[4thstuning]

This video is stupid and deceitful. Debt always comes from one source, borrowing. The government wouldn't stop spending and actually increased it way in excess of revenues.