Government Accounting Realities

Post by **Martin Hash** » Thu Sep 22, 2016 2:56 am

Government must not have a Trade Deficit.
Ex: Government spends $1 billion. If American citizens eventually end up with that money, they owe it back in taxes, so it is a credit to Government, but if China ends up with that money due to a trade deficit, they purchase Treasuries, so American taxpayers end up paying China.

p.s. Unless, of course, Government never intends to pay off its debt, then the Trade Deficit can be viewed as tribute from the World.

Government must not perform functions that could be provided by Private Enterprise.
Ex: if Private Enterprise performs a service, Government accounts do not change, but if Government spends that same money directly, they become debtors, ultimately making taxpayers the debtors.

"Free" Trade is Twice as Expensive
1. You buy a shirt from China.
2. China buys a U.S. Treasury with the money.
3. You pay taxes to cover the Treasury debt.