"DSK" wrote in message
...

Bill McKee wrote:
Printing excess paper does not generate wealth.

Define "excess."

... Mostly, it generates inflation.

Agreed. However, if the U.S. decides to print it's way out of debt, we
have a really long way to go.

... Where is the money for those IOU's going to come from?

The same place it has always come from.

So, you think the U.S. is going to default on it's debts? That will affect
the value of $20 bills almost as much as Treasury instruments.

The funny thing is that the people who are screaming about Treasuries
being "worthless IOUs" are the same people who most loudly support the
administration which is driving us headlong towards bankruptcy & default.

DSK



My definition: Excess: More than required. We need to go back to a gold
standard / silver standard. Currency that is backed by some hard item.
Plutonium? That way the government can not just print more paper and
generate inflation that helps government revenues. (Bracket creep etc.).
The $20 bill is not worth what it was 25 years ago, or even 1 year ago. 25
years ago it took about 150 $20 bills to buy a mid range car, now it takes
about 1250 $20 bills. And the US may default on it's debts. We would not
be the first nation to do it. As to the present administration going
headlong towards bankruptsy, all the previous ones have paved the trail.
Even Clinton. Government revenues exploded during the dot.bomb and remember
Clinton raised taxes an exhorbitant amount. Even he admitted that he raised
them excessively. The government has to get the money from the people. The
same people that are paying a lot of taxes now. How much more can they
cough up? Cough up without having a revolution? When the people get fed
up, the Dems and Repubs will both be in the history book like the Whigs. I
see the Libertarian party having a huge influence in the political process,
if they get some decent leadership, that just does not press for pot
legalization.