Federal Reserve Reserve Debt : how it is paid

Discussion in 'Economics' started by harrytrader, Jun 29, 2003.

  1. Grace Commission under President Reagan

    "One-third of all their taxes is consumed by waste and inefficiency in the Federal Government as we identified in our survey.

    Another one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy-a vicious cycle that must be broken.

    With two-thirds of everyone's personal income taxes wasted or not collected, <B><FONT COLOR=RED>100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. </FONT></B>

    In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government. "

    As a result to get services from gov, gov must even more borrow and interests even more grows and so tax and this then become exponential as a conclusion you pay tax and that goes solely for (foreign) interest on your national debt. Your debt explode with war and you can guess that when you make war it is also the interest of foreign bankers (notably european) that lend to you.

    On Grace Commission:

    Founded in 1984 by the late industrialist J. Peter Grace and syndicated columnist Jack Anderson, CAGW is the follow-on organization to President Ronald Reagan's Private Sector Survey on Cost Control, also known as the Grace Commission. In 1982, President Reagan directed the Grace Commission to "work like tireless bloodhounds to root out government inefficiency and waste of tax dollars." For two years, 161 corporate executives and community leaders led an army of 2,000 volunteers on a waste hunt throughout the federal government. Funded entirely by voluntary contributions of $76 million from the private sector, the search cost taxpayers nothing. The Grace Commission made 2,478 recommendations which, if implemented, would save $424.4 billion over three years, an average of $141.5 billion a year – all without eliminating essential services. The 47 volumes and 21,000 pages of the Grace Commission Report constitute a vision of an efficient, well-managed government that is accountable to taxpayers. CAGW has worked to make that vision a reality and, in 17 years, has helped save taxpayers $687 billion through the implementation of Grace Commission findings and other recommendations.

  2. Banjo


    Harry, some of us will live to see the day when there is no physical money, just pure electronic exchange. The harbingers are here now,auto deductions from bank accounts, swiping your "club" card at the grocery store, credit cards for purchases, sensors knowing your car just passed the toll gate etc. etc. The only way governments can recoup or keep up with the debt is by collecting all taxes due. The only way they can do that is to make it impossible to transact without them knowing about it and taking their cut at the transaction, if you are not an electronic entity (person) you will not be able to transact unless you barter a service, goods will have to accounted for. Poor people will have their own pool to draw from so they can survive, need to keep the revolutions down you know.
    Nevertheless, governments will continue to outspend themselves as the essence of politics is getting re-elected and demands giving something to the constituency (pork barrel politics) as well as paying for the infrastuctures neccessary. It's a never ending game with no finite resolution .
  3. ttrader


    Some of us will live to see when there is no physical money, just pure electronic exchange in form of ONE SINGLE CARD onthe planet ....:D