Quote:
Originally Posted by
draco888
Quote:
Originally Posted by
Butterfly
Quote:
Originally Posted by pseudolus
Tell me when was the last time a government debt in the US was actually repaid?
a government doesn't have an "equity tranche" in their accounting like corporations do, so their working capital needs to draw from debt, not equity or cash. In short, debt is all they have to run the system, that's how their "working capital" is financed.
or they could run a balanced budget.
oh that's very smart, and how could they do that ? :rolleyes:
if growing corporations constantly needs bridge loans to "balance" their operations budget or revenues shortfall, I don't see how government could achieve it when they are dealing with a far bigger size of liabilities and unforeseen events.
Maybe if you understood businesses and normal corporate financing activities, you wouldn't be so rigid in your assumptions about government spending. The government is an employer and an economic entity like any other corporations, but it doesn't have the same mandate as a corporation.