I'm not sure if state/local governments really need to balance their budgets. They can borrow just like the federal government can. > the states and local muni

I'm not sure if state/local governments really need to balance their budgets. They can borrow just like the federal government can. > the states and local municipalities don't have the fed The federal government too doesn't "have" the fed. The federal reserve is a bank and it's independent of the government.