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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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To: St_Thomas_Aquinas
Deflation of the currency means inflation of the price of goods and services. Printing enough money to pay our creditors would cause deflation of the currency and inflation in the price of goods and services.

As to why, because it could be done gradually, and it would not be a breach of the promise our nation gives when we borrow money, which will count for a lot when we need to sell our goods overseas.

Moreover a default by us would trigger a default by everyone else. Welcome to worldwide depression!

19 posted on 02/24/2012 2:24:36 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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