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Originally Posted by Paul Markham Do the distribute the money loaned as well?

Not really, some of Federal tax revenue is returned to the states in the form of revenue sharing (block grants) and some money for federally funded projects. Road work would be one grant -- like the EU funding 80% of a bridge with the other 20% paid by that state or the local district.

The money is spent not loaned except in the case of bonds sold to the public for these type projects.

The Federal government guarantees Federally Chartered Bank's deposits. The Federal reserve Bank "lends" short term money to Federal Reserve Member Banks at times.

Recently the US Government, itself and by the means of the Federal Reserve Bank (central bank (but a private quasi governmental entity -- Illuminati) :D ) make some loans. i.e.; "bailouts"

The Federal government has long been the guarantor of many loans; mortgages, small business administration loans, student loans ...

Its like the EU would take all EU taxpayer money and use some of it for road bridges in Bulgaria. The Bulgarian would get back 1.15 on his EU tax "donation." This would make the Bulgarians a net recipient. Substitute Greece, Romania, or other lesser income countries within the EU -- they are now states with limited powers subservient to the central EU government.