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Monday, February 25, 2013

Cutting Excessive Government Spending: A Novel Concept

Government spending is out of control. With the Federal deficit into the trillions, it would seem practical to cut back Government spending. Especially when the debt load for the United States Government is in the trillions of dollars. Note: the debt purchased is to "true up" the deficit. The interest payments must be paid back and just imagine the interest payment on trillions of dollars!

What is maddening is when prominent economists promote the spurious notion that the Government needs to spend more money, and this action is placing us into a deeper amount of debt. At what point is enough enough?

Let us not forget the Federal Reserve. Since it can print out money upon demand, it makes the spending process very simple for the folks in DC. The Fed is purchasing more US Government debt has seen the Federal Reserve's balance sheet balloon in size since the financial meltdown of 2008. A growing balance sheet of the Federal Reserve with US Govt securities is not a great thing in the long run.  Couple this process with increased Government spending, it is a recipe for economic disaster.

This article titled, "Houston We have a Spending Problem", observes some of the thoughts of the media and economists regarding Government Spending.

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