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<p>[QUOTE=&quot;fatima, post: 1407040, member: 22143&quot;]Except that the real numbers don&#039;t support your conclusions.&nbsp; </p><p><br /></p><p>First, you are confusing government spending with money printing.&nbsp;&nbsp; The US government will borrow $1.2T this year.&nbsp;&nbsp; Of this, only about 50% is being financed by the Fed, so $600M.&nbsp;&nbsp; The rest of the debt is being bought by other countries, institutions and even individuals (such as everyone with a savings bond).&nbsp;&nbsp; US government debt is considered an &quot;asset&quot; by the all these parties because it is directly backed by the US taxpayer.&nbsp;&nbsp; </p><p><br /></p><p>On the other hand, &quot;money printing&quot; occurs when the Federal Reserve decides to increase the money supply and it&#039;s got nothing to do with US Treasury debt or spending.&nbsp;&nbsp; The Federal Reserve conducts its own monetary policy and it isn&#039;t subject to congressional or presidential review or oversight.&nbsp;&nbsp; Since the financial crisis of 2008, the money supply as made available by the Fed&#039;s QE processes and other tools was increased by 30% and currently stands around $9T.&nbsp;&nbsp; This number dwarfs the $0.6T loaned to the US Treasury by the Fed.&nbsp; The Fed is creating this currency to protect the TBTF banks and to prop up the stock market as it has decided on its own, this is the best way to fix our economy.&nbsp; </p><p><br /></p><p>Furthermore, the US government doesn&#039;t need the Federal Reserve to remain solvent.&nbsp; The US Treasury is perfectly free, as defined in the Constitution (which people don&#039;t seem to read) to resume printing all the USD the government needs to conduct business.&nbsp; &nbsp; They have not used this right since 1971 however.&nbsp;&nbsp; </p><p><br /></p><p>In other words, if the US government miraculously balanced the budget this year and for the rest of the future, it would make absolutely no difference to the problem we are discussing because this isn&#039;t where the problem lies.&nbsp;&nbsp; Hopefully this might have given you something to think about rather than the dogma about government spending priorities.[/QUOTE]</p><p><br /></p>

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