If you and your spouse had a budget of $3,000 a month and you needed an extra $1,000 to pay for a repairs to you car, what would you do?
Would borrow the $1,000 from a loan shark or would you transfer the funds from your savings account? Unlike a responsible individual, when the Congress exceeds their budget, they borrow the amount to cover the deficit from the Federal Reserve.
The government's budget for 2020 is $4.5 trillion and only $3.5 trillion dollars were collect in tax revenue. The government has $146 trillions in assets that are hidden in secret bank accounts. The yield on those assets is significantly larger than $4.5 trillion budget.
Rather than transferring funds from the secret accounts, Congress funds the government with money borrowed from the Federal Reserve and requires the people to pay the interest in the form of higher taxes.
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