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The "federal deficit" is when the government spends more than it taxes. And when government spends a dollar, there are only two possibilities. Either that dollar is used to pay taxes and is lost to the economy, or it remains in the economy as what we call "monetary savings." And so the government deficit - dollars spent by the government and not yet used to pay taxes - is in fact our monetary savings. And so this explains why the businesses and households in the economy are able to save so much. In fact, government deficit spending adds exactly that much to our savings, to the penny, as any government accountant will confirm!
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