Reading the comments on an article on another site (linked, however, through DU, I believe) I came upon what was to me a novel idea . . . .
Since the Federal Reserve has been granted the power to print money by both the US and the ROW (everyone else, rest of world), there is really no budget balancing need for taxes at all. What taxes do is, presumably, control inflation. In the absence of inflationary pressures (or perhaps, even under inflationary pressures), FR simply prints off enough money to pay USGOV's obligations and distributes it to whoever is owed those obligations.
I suppose that at some point this could cause a lack of confidence in US$ but right now one major issue with the global economy is that there is too much confidence in US$.
Reading this comment was to some degree mind blowing for me as I contemplated the ramifications of a government that chooses to allow a federal deficit to exist when it is easily within its power to wipe it out. And I have come to view the USGOV debt issue like the debt issue generally as a population control mechanism. And a means of transferring wealth . . . in this case from wage earners to banks.
But why? Why even bother with all this even if it does effectively control the population?
I am having a really hard time understanding the US Sovereign Debt now that I know that it could be waved off instantly.