Jun
10
thedoorsi
Why do governments borrow money at interest from private banks and have the citizens pay taxes on it? Doesn’t it seem much more logical to create all the interest free money it needs themselves and not have citizens paying taxes mostly to banks to finance loans?
It doesn’t seem to matter who is making money, just that it’s being created out of giving someone debt (specifically, in this case, the government).
Why do governments borrow money at interest from private banks and have the citizens pay taxes on it? Doesn’t it seem much more logical to create all the interest free money it needs themselves and not have citizens paying taxes mostly to banks to finance loans?
It doesn’t seem to matter who is making money, just that it’s being created out of giving someone debt (specifically, in this case, the government).
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2 Responses to “Why do governments borrow money at interest from private banks?”
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When you find something the government does that makes sense, please let me know. Alex Jones has his opinions as to why, not that I believe everything I see, but you might wanna check out prisonplanet.com
if the government just prints money, hyperinflation results, money loses its value
by selling debt to the general public/banks, the printed money is vindicated by the market. if banks refuse to buy the t bills, the money wont get printed, and they would only do this is the US government was being really irresponsible