Quote:
Originally Posted by samcol
Well, I think you have to look at why the government engages in this fractional reserve banking. They do it because they can't generate enough money from TAXES to pay for the huge spending increases.
So they print money in order to account for the excessive spending which in turn financially hurts the TAX payer through devaluing of the currency.
It's not a legally defined tax, but acts as a de facto tax.
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If what you are saying is true, then they would just be printing money to cover the deficit. It is an economic stimulus more to give more money to the banks than it is to put money into the government coffers to pay for programs. The money doesn't just show up in their coffers, it shows in the Federal Reserve who releases it to the banking system.
It may feel like a tax to you but I cannot agree in any shape or form that it is a tax. If it was, we'd have some sort or representation for it, meaning that it would be passing through congress in some fashion. But it doesn't.
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