How do governments get access to capital?

Officially, there are two ways:

1) Taxes
2) Debt

So, if taxes don't generate enough revenue, you have to take on more debt.

We're seeing this happen in the US right now.

However, last week the sale of US 30-year government bonds was a major flop. The bonds could only be sold by raising the interest rate. This fact is a red flag for the American economy. The economy desperately needs interest rates to come down.

We aren't seeing it in stock prices yet, but realize that the US government will soon have to create money out of thin air on a large scale—in short, create a third way to get money. Due to the already high national debt, they can't afford high interest rates.

Quantitative Easing (QE) is a method they have used before. It worked then, but as a government, you're playing with fire if you keep creating money out of thin air. It's essentially cheating. The question is: how long will market participants continue to trust the dollar after that?

If confidence in the dollar disappears, not only the US but the entire world will have a problem.

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On 15 Aug 2025, Joseph Pereira said the following...

How do governments get access to capital?

Officially, there are two ways:

1) Taxes
2) Debt

So, if taxes don't generate enough revenue, you have to take on more
debt.

Lie

There are more ways to generate capital.

It has been shown that reducing income tax increases what the Government takes in... Because there is more money circulating in the economy generating more wealth.

You can do things as a president to increase the size of the economy... Bring back manufacturing jobs... Recall the Obama speech where Barry wondered how Trump was going to do this?? With a "Magic Wand"... Barry was quite confused as to how things work.

Daddy Trump has added TRILLIONS in capital injected into the market in the past 6 months. Apple is Bringing 600 Billion and moving manufacturing to the US...

Manufacturing moving into the US. The largest wage increase for the past 60 years.

TRILLIONS, More than 10, in market cap have been added to the market since Trump took office.

He's cutting wasteful spending... USAID and other projects cut....

A recent headline...

Trump Announces MASSIVE Social Security Cleanup - 275,000 Illegal Aliens Removed, Plus 12.4 Million Dead People Over 120 Years Wiped from Database

He stopped paying for hotel rooms for illegals and started deporting the illegals.

June was the first time in a long time that the US government took in more money than it spent.

Trump wants to give "The People" a small check, of $600.00., on their next year tax returns as he wants to focus on paying down the debt.

Liberal ideas... Barry confused as to how to get manufacturing back to the US. Joe Biden confused as to how to close the border to stop Illegals coming into the country.

Liberals print money and created most of the debt.

Daddy Trump has a plan to grow the economy for the working class... Bottom up approach... Cut wasteful spending... Increase the market size and get out of stupid wars.

I'm for Trump all the way... Dems have no plan or policies other than Orange Man bad!!!

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