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Study: "Debt Problem Began Four Decades Ago"

PhillupSpace2 Wrote: Jan 22, 2013 1:11 AM
Sadly, obamasux, that point has already been reached. Foreign Governments became reluctant to buy our paper some time ago. Sixty percent of the paper is now purchased by our very own Federal Reserve. This is like borrowing money from your dead aunt. There is no money there but you borrow it anyway! I believe that is why Obama thinks there is an endless supply. Remember the old joke about, my wife does not think she is out of money; she still has checks left in her check book!
A new report from the Federal Reserve Bank of St. Louis reminds Americans that, contrary to the narrative that huge deficits and debt are merely a recent product of the Great Recession, the problem began over forty years ago.

Daniel Thornton, the St. Louis Fed's Vice President and economic adviser, finds what conservatives have been saying all along is true: it's steadily increasing government spending, not a lack of tax revenues, that's causing all of this.

[A]fter 1970, both revenues and expenditures increased on average relative to the previous two decades; however, revenue increased marginally while...
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