justin_o_guy2 wrote on 08/04/12 at 11:43:59:Your complete & utter failure to grasp that printing more $$$ equals more debt amazes me, Every dollar created come From the Federal REserve BANK. Just as when you borrow from a bank, you owe principal And Interest, so do we, as a nation, since we gave away our sovereign right to create our own Money, so, the only way to "Print More $$$" is to Borrow more $$$,,
What ... that's the dumbest thing I have ever heard.
People dont have the ability to do what a federal govt does.
So, I'll make it simple -
Print $ and give to people who hold bonds. There ends the story.
The way US has been financing itself has been to issue more bonds. That way the people who buy bolds come back asking for the interest and we need to pay that and we still owe the capital.
The act of printing $ makes the money you have in your pocket worth less and less and less. Inflation is the side effect of printing $. Anyone who has hoards of $ sees their hoard become less and less valuable.
Go back and see the chinese reaction to US suggesting they will print $. They react as though we are cramming a nuts sandwich down their throat. They want us to borrow from them and buy their garbage. Hence the 1.5% interest. End of story.
However, for real - No sense printing $ now, we can always print it when interest rates are 8% and the debt is 30 trill.
Cool.
Srinath.