The Fed

[ddd75]

you know.. if obama would of just gave us all his spending money (more then ALL presidents put together)

every US citizen could of got a check for 250k.

 

[greybeard]

"We have a large economy but a large share of that is government at all levels spending (40 cents on every dollar of government spending is borrowed),"
Depends which set of numbers one looks at. I've seen it stated as high as 60¢ per $1.

(Govt spending (Fed, State,Local) for 2018 is estimated to be about 36% of GDP not including the approx 4% GDP spent on Fed deficit 'maintenance.)

Government Pensions..................7% GDP
Government Health Care............+ 8% GDP
Government Education..............+ 5% GDP
National Defense.....................+ 4% GDP
Government Welfare.................+ 2% GDP
All Other Spending...................+ 9% GDP
Total Government Spending.........36% GDP
Federal Deficit........................+ 4% GDP


(+ before the % of each segment indicates it is not a whole number..has decimal places after)
(Other spending=expenditures for things like transportation, research, mining, environment, community development....it's a very long list)
https://www.usgovernmentspending.com/percent_gdp
https://www.usgovernmentspending.com/ye ... 80#usgs302

 

[Bright Raven]

"We have a large economy but a large share of that is government at all levels spending (40 cents on every dollar of government spending is borrowed),"
Depends which set of numbers one looks at. I've seen it stated as high as 60¢ per $1.

(Govt spending (Fed, State,Local) for 2018 is estimated to be 36% of GDP not including the approx 4% GDP spent on Fed deficit 'maintenance.)

Government Pensions..................7% GDP
Government Health Care............+ 8% GDP
Government Education..............+ 5% GDP
National Defense.....................+ 4% GDP
Government Welfare.................+ 2% GDP
All Other Spending...................+ 9% GDP
Total Government Spending.........36% GDP
Federal Deficit........................+ 4% GDP

(Other spending=expenditures for things like transportation, research, mining, environment, community development....it's a very long list)
https://www.usgovernmentspending.com/percent_gdp
https://www.usgovernmentspending.com/ye ... 80#usgs302

On channel 18 Lexington news, Senate Majority leader Mitch McConnell was interviewed during the Obama administration when a group of republican senators were advocating a mandatory balanced budget amendment. Senator McConnell stated, the economy of the US is dependent on deficit spending. He added, that a balanced budget would send the country into financial disaster.

Whether it is 36 percent or 40 percent of GDP, our economy is now wired for deficit spending. How this all resolves itself, I don't think anyone knows.

 

[Nesikep]

They 'could' back each dollar in accounts and circulation with gold, but the value of gold would have to rise to over $10,000/ounce first. Last I read the US Govt in total (not just federal reserve) has only about 261 million ounces of gold in various forms in it's vaults.
Not all of it is part of the Federal Reserve. Some belongs to the Treas Dept. Some is 'working gold' some is 'deep storage' at Ft Knox Ky, West Point NY, & Denver Colo.

Thanks for putting some flesh on the prospects of going back to a gold standard and making US currency exchangeable for gold. There are lots of reasons - unfavorable for the US - not to return to a gold standard.

I was told that "deep storage" means it's still in the ground yet and hasn't been mined.. In other words it's a pie in the sky based on mining assays, etc

 

[Bright Raven]

"We have a large economy but a large share of that is government at all levels spending (40 cents on every dollar of government spending is borrowed),"
Depends which set of numbers one looks at. I've seen it stated as high as 60¢ per $1.

(Govt spending (Fed, State,Local) for 2018 is estimated to be about 36% of GDP not including the approx 4% GDP spent on Fed deficit 'maintenance.)

Government Pensions..................7% GDP
Government Health Care............+ 8% GDP
Government Education..............+ 5% GDP
National Defense.....................+ 4% GDP
Government Welfare.................+ 2% GDP
All Other Spending...................+ 9% GDP
Total Government Spending.........36% GDP
Federal Deficit........................+ 4% GDP


(+ before the % of each segment indicates it is not a whole number..has decimal places after)
(Other spending=expenditures for things like transportation, research, mining, environment, community development....it's a very long list)
https://www.usgovernmentspending.com/percent_gdp
https://www.usgovernmentspending.com/ye ... 80#usgs302

GB. I am getting two functions going here. To be clear:

1. The role of Government spending as a percent of Gross Domestic Product (GDP). Using your links - about 36 % of the national GDP is a function of government at all levels.

2. Playing into that is deficit spending. Of every "federal government" dollar that goes into that GDP, 40 to 60 percent of it is borrowed. So deficit spending (which is the point McConnell was making) is critical to underpinning the US GDP.

 

[alisonb]

you know.. if obama would of just gave us all his spending money (more then ALL presidents put together)

every US citizen could of got a check for 250k.

That would be like 82 Trillion dollars :shock:

 

[Fieldhand]

you know.. if obama would of just gave us all his spending money (more then ALL presidents put together)

every US citizen could of got a check for 250k.

That would be like 813 Trillion dollars :shock:

I think that it would be 81.3 Trillion.

But a check of 25k, would put it at 8.13 Trillion which would make sense to me.

But that's counting zeros quickly. I may be wrong.

 

[alisonb]

Forgot my comma and went back to correct but you had already quoted me ;-)

 

[greybeard]

I was told that "deep storage" means it's still in the ground yet and hasn't been mined.. In other words it's a pie in the sky based on mining assays, etc

Not in the US. "Still in the ground" would be proven/unproven" reserves of mining companies..same term used for crude oil/uranium/coal etc..


In previous decades, the term 'custodial gold' was more often used.
(I do not believe in the 'Fort Knox is empty' conspiracy theories)

https://www.fiscal.treasury.gov/fsrepor ... report.htm

Deep Storage: That portion of the U.S.Government-owned gold bullion reserve which the Mint secures in sealed vaults that are examined annually by the Treasury Department's Office of the Inspector General and consists primarily of gold bars.

Working Stock: That portion of the U.S. Government gold reserve which the Mint uses as the raw material for minting congressionally authorized coins and consists of bars, blanks, unsold coins and condemned coins.

The gold reserve held by the Department of the Treasury is partially offset by a liability for gold certificates issued to the Federal Reserve Banks at the statutory rate, which Treasury may redeem at any time.