Quote:
|
Originally Posted by Guest
I share your concern about the national debt but it continues to go up with absolutely no pain or downside. That is why very few are concerned or worried about it. If we had to increase taxes to equal what is spent, I think that is called a balanced budget, the percentage of Americans concerned would increase proportionally to the pain of paying for what is spent. IMO
|
Fiat currency, simply printing money is nothing new.
We are all aware of the German hyper inflation preceding WWII. If, you are not aware, Germany was not the only government simply printing money thay led to currency collapse; it was bad in Italy, Spain among others.
We are doing exactly the same thing. We have a fancy term for it so we want to believe. What is quantitative easing? In plainspeak our government is PRINTING worthless money to pay ITS BILLS.
Read these posts or any like them. Our dollar is based on the full faith and credit of the united states. Republican, democrat, independent, socialist,white, black, brown, blue or green FAITH IN OUR GOVERNMENT HAS CERTAINLY LOST VALUE.
Back to simple economics. The result of the national debt is INFLATION-a loss of value for our currency and perhaps more important certainly as important is the fact that we now need to worry about what our creditors will due. China has threatened to dispose of the Treasuries they now hold. It is true it would cost china because it the dollar collapses they would loose value on all the dollars they hold. For the US, it would economically destroy us.
Our FED says the want 2% inflation rate. HAS ANYONE BUT ME ASKED WHY??????? At 2% inflation your dollar looses HALF IT'S VALUE in 36 years. Inflation STEALS from savings and rewards debt.