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To: St_Thomas_Aquinas

Why default when we have a fiat currency?

We can print out enough bills to pay our debts tomorrow if we wanted.

It would cause massive deflation - but nothing as bad economically as a default would bring.


15 posted on 02/24/2012 1:02:52 PM PST by allmendream (Tea Party did not send the GOP to D.C. to negotiate the terms of our surrender to socialism.)
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To: allmendream

-—We can print out enough bills to pay our debts tomorrow if we wanted.
It would cause massive deflation-—

Wouldn’t that be inflationary?

-—but nothing as bad economically as a default would bring.-—

Why?


18 posted on 02/24/2012 2:05:09 PM PST by St_Thomas_Aquinas (Viva Christo Rey!)
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