Since it seems like a foregone conclusion that we are going to start up the presses and print a lot of money, I propose that we spend the money into circulation rather than borrow it into circulation.

Either way will be inflationary, and the only thing backing it will be the credit of the USA.

There would be one huge difference. If the money is borrowed, it will add to the already crushing national debt and the interest will have to be serviced. At some point, the interest will become impossible to pay.

On the other hand, if government prints the money and uses it to pay toward the budget, there would be no additional interest added to the national debt.

I would hope that the prospect of hyper- inflation would keep politicians from printing an unlimited amount of this unsecured paper, but that would be the case either way.

This might require repeal or amendment of the Federal Reserve Act, but that could be done. In fact, this might be the very time to do it.

I'm also worried that the massive U.S. debt will cause the entire world markets to crash if they don't get it under control. China is hinting that they no longer want the U.S. dollar to be their reserve currency. The problem is that the Republicans don't want to raise taxes and the Democrats don't want to cut spending even though it is obvious that both are necessary.

... and I am still a $$$$$$$$$$ $hort and a day (lifetime) late!

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Originally Posted by earl237

I'm also worried that the massive U.S. debt will cause the entire world markets to crash if they don't get it under control. China is hinting that they no longer want the U.S. dollar to be their reserve currency. The problem is that the Republicans don't want to raise taxes and the Democrats don't want to cut spending even though it is obvious that both are necessary.

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You can not provide an instance of even one time when raising taxed did anything but cause inflation, reduce income to the government and put the real hurt on the people who pay taxes. And worse on the low income who pay little to no taxes.
Listening to a blurp on the news tonight and the predictions are now this recession(depression) will last for another five years. Nobamas tax schemes are only making the economy worse, not better.

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Originally Posted by earl237

I'm also worried that the massive U.S. debt will cause the entire world markets to crash if they don't get it under control. China is hinting that they no longer want the U.S. dollar to be their reserve currency. The problem is that the Republicans don't want to raise taxes and the Democrats don't want to cut spending even though it is obvious that both are necessary.

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I heard that too they and other countries warned us.
Obama said he PROMISES that the health plan they pass will NOT cost us one dime more.
I can't wait to see that one.
Will it be yet another broken promise?

Here's proof that bucket list "stimulus" money is going to the crapper.

FEDERAL GOVERNMENT TO SPEND STIMULUS MONEY FIXING TOILETS AROUND THE NATION - New York Post