On Thu, 19 Mar 2020 12:08:33 -0400, "Mr. Luddite"
wrote:

I am not sure the government can print enough money to fix this
without crashing the dollar. I doubt anyone wants zero percent bonds.
You might as well hold the cash and hope it is still good for more
than toilet paper.



Greg, with all due respect (and I *do* respect your thoughts and
opinions) I've been hearing about the "debt bomb" and that the
economic sky is falling for as long back as I can remember as an
adult.

As long as there is economic growth (over the long term) be it
a business or a government, the debt, although important to
watch and monitor, isn't a death sentence.

Debt only matters at the end of keeping score. But, at the end, debt
doesn't matter.

===

That has always been true, in our lifetime, and in this country.
However history abounds with examples of countries who got into severe
trouble by printing money to excess. Italy, Greece, Argentina and
Brazil are prime contemporary examples. All of them have been subject
to severe austerity measures, foreign financial involvement, and
considerable political unrest.

We're not quite as vulnerable now that we've achieved energy
independance, but we do import enormous amounts of manufactured goods
from China. Imagine a scenario where China would no longer accept
dollars in payment, or where China would no longer buy our Treasury
bonds. What sort of concessions might they demand as a result?

Far fetched? Maybe, but it has happened to other countries at other
times.

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