major fail. every 42 cents of every dollar in circulation is borrowed money. that's what is meant by a federal deficit. that is why it is a percentage of GDP. that is why a federal deficit is not like a credit card... lol l oll lol o l o l o l o lThat's not quite right. 42 cents of every dollar the federal government spends is borrowed money. This is not sustainable. Americans, including you, are coming to realize just how out of control the spending is, and the dire straits the agenda of the
"Progressives" have gotten us into.
Another great American revolution is going to occur in 2012 at the ballot box. The Progressives in BOTH parties have to go, to be replaced by small government, free market candidates.
The entitlement mentality needs a therapist.
Your only partly correct. Every loan by every commercial bank creates money and puts it into the Entire Monetary Supply. So when someone buys a municipal bond money is created because the transaction account from the bond seller has new money deposited into it that the banks may now use as a reserve against other loans.corporate, municipal and state bonds behave like debt. in those instances you can make the argument that every so many cents per dollar is borrowed money.
the FEDERAL DEFICIT LEVEL and treasury bonds deal with the ENTIRE MONETARY SUPPLY.
google it....