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Old 08-06-2007, 07:36 PM
The once and future king The once and future king is offline
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Join Date: Aug 2004
Location: Iowa, on the farm.
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Default Re: Is the national debt a good thing or a bad thing?

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The debt is 'good' for our government because they can print massive amounts of money, create massive inflation, and then the debt will become much more manageable...

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Wait. The government can print money, yet it is in debt.

So you are saying that the government handles its debt by printing money but not to pay off the debt itself, but to erode the debt via inflation of the money supply.

You are missing the vital piece of the puzzle. Money is created by debt, infact in the present system the majority of money is debt. The money supply is inflated by the government debt itself. The vast majority of the money borrowed by the Government didnt exist until they borrowed it, the act of borrowing creates money.

Borrowing/Debt creates alot more money than government printing. It is worth noting that under the present system if there was no public and private debt, there would be virtually no money.
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