1. Some of it is, obviously, though schools are built primarily with state and local funds.Winston wrote:Ok several questions then.gsjackson wrote:Most "money" in circulation is created when banks make loans. Only ten percent or less of the loaned funds is actually on hand at the bank, the rest is new money created from scratch (as are the amounts made available on credit cards). Federal reserve notes and coins constitute less than 5 percent of the outstanding money supply; the rest is just accounting entries, created primarily through loans.
You don't need "evidence" that a substantial portion of the federal budget goes to service debt, much of it to banks in the federal reserve system. That's a simple fact. Federal Reserve banks do get tax dollars paid as interest on money they create as loans, but I believe that in the last few years of quantitative easing, the government has not effectively been charged interest on new money from the Fed. (When people start sniffing around this scam because of a tanking economy, i'ts best to lie low with the most egregious aspects.)
Think about it: The US has maybe upwards of 35 percent of the population that is either unemployed or underemployed, people who want to work more. And there are no shortage of jobs needing to be done in this country, starting with a crumbling infrastructure. Yet the would-be workers and jobs can't go forward for lack of something called "money," which is controlled by a system of private banks. Something's wrong with this picture. The US government is given the power to coin money by the Constitution. That's what it ought to be doing instead of remaining at the mercy of the blood-sucking middlemen.
Why does the government claim that our tax money is used to build roads and schools then?
Why don't banks just give loans to everyone who wants one, even those with bad credit, since they have nothing to lose?
Why doesn't the Fed help the economy by cancelling out some of the debt owed by the US government? Wouldn't that reverse the impending economic collapse?
2. The banks have reserve requirements that they are required to maintain. Loans that go bad are counted against this requirement, and make the issuance of profitable new loans more difficult.
3. If it comes to that, I suspect the banksters probably would write down US debt. Where else are they going to find a country with a state-of-the-art military and no political checks whatsoever against using it to achieve any desired geo-political objective?