I’m sorry, but I disagree. The Fed is not us. It is owned by private entities.
The government buys things to give out to the public.
It needs money to pay for them.
It does not get enough revenue to pay for it all.
It borrows from the Fed.
The Fed creates the money to lend to the Treasury.
When the bills come due, the treasury pays the Fed.
We pay the treasury through our taxes.
If we don’t agree on that, there isn’t much more I can add.
I do, however, agree that the policies of the government for many years have made us overspend, so that the borrowing of money from third parties to finance those services and goods are necessary. Ultimately, it is the people wanting things for free.
Not really. It's ownership and control are unlike any other business. See this article
"The government buys things to give out to the public. It needs money to pay for them. It does not get enough revenue to pay for it all. It borrows from the Fed."
It usually does not borrow from the FED. It usually borrows from the public or even foreign lenders like Japan and China. The FED only started buying treasuries in mass after the 2008 crisis and then to lower interest rates to help unemployment. Congress was able to rack up almost $8 trillion in debt going into the 2008 crisis without the FED's help.
The Fed creates the money to lend to the Treasury. When the bills come due, the treasury pays the Fed. We pay the treasury through our taxes. If we don’t agree on that, there isn’t much more I can add.
The treasury borrows money from whomever, sometimes it's the FED. And government spends that money for whatever, sometimes it's giveaways. Sometimes it's for unemployment caused by government's failure to protect our market and industries. But the point is, yes the government spent the money. So whether they borrowed from China or the FED, when the treasury repays they are using tax payer money to repay.
We as individuals can loan money directly to the Treasury by buying treasuries. The fact that we get repaid the loan, doesn't change the fact that the government spent the money and our taxes will eventually pay for them repaying the loan to us.
Same thing with the FED. When the FED loans it's not much different than us loaning directly. But there is still a bill due and it's paid from our taxes.
It's just not the FED's fault, it's Congress's fault. They're the authorizers of spending and the authorizers of borrowing.