Originally Posted by Nerv14

I also agree with you right now that cuts in spending and a strong dollar are the answer, but we have to look at all our options.

We do need to recognize that with inflation, the debt will effectively shrink in the cost that it is worth in gold.

and how will the banks "close" on us if we owe them money? Isn't that good, because if China stops accepting our payments for their debt then won't we just have huge inflation but the debt wil dissapear...

That also sounds like a way to make our currency worthless... If any economist has any info about this I would be thankful for any help.

Originally Posted by Nerv14

I also agree with you right now that cuts in spending and a strong dollar are the answer, but we have to look at all our options.

We do need to recognize that with inflation, the debt will effectively shrink in the cost that it is worth in gold.

and how will the banks "close" on us if we owe them money? Isn't that good, because if China stops accepting our payments for their debt then won't we just have huge inflation but the debt wil dissapear...

That also sounds like a way to make our currency worthless... If any economist has any info about this I would be thankful for any help.

Originally Posted by Nerv14

This is just a thought... but I heard on an interview with Bob Barr, when the host said that we can't pay off this debt and that is why the government is trying to cause inflation to make the debt worse.

So... that may mean that this inflation is actually a good thing overall because even though it is destroying the confidence in the dollar, it is also going to make it easier to repay the debt.

I mean, we are either going to have to repay it with much larger taxes (or huge government cuts of course) or by just having insane inflation. I am no ecomomist, but George Bush may know what he is doing (there is a first time for everything, well maybe not for that...).

I also have another new thought... not everything is a globalist world-feds conspiracy theory, sometimes it is just economics... those things seem to get confused alot...

Originally Posted by michaelr

When you have increased inflation, then you must borrow or print more. I see what your saying but crap man thats a never been done trick and it sounds foolish to try it. No disrespect to you. The banks will close when we have runs on the banks or when their lines of credit dry up. Right now Fannie May can't pay its members, they want their money but they will not be getting it anytime soon.

Originally Posted by anonnymous

What are you talking about? Inflation destroys your ability to pay for everything and barring any increases in your salary or wages it can destroy you pretty damn quick.

Originally Posted by Nerv14

Its fine, my idea is insane so to put it lightly... sceptisism is healthy.

However, inflation involves printing more money but it doesn't inherently cause more borrowing. You are getting the cause and effect that we are having right now backwards.

We are borrowing money from overseas banks it is decreasing the value of our currency.

The insanely low interest rate that we have right now is just causing us to print more money, but just because money is easier to get that doesn't make us borrow more money overseas.


If there is one helpful thing that more inflation will do, it reduces the amount of money that we can borrow and lowers our debt because no country will care much about the s*** currency that we owe them. That will also make it harder for us to borrow more money in the future, so we will have to ballance our budget or our currency will completely collapse (which is already happening right now).

Inflation harms basically every part of the economy, but it will reduce our debt... but it doesn't seem worth it at all.



thx for commenting on my reasons for why inflation may be helpful.


I am pretty sure that my way to get out of the debt is not a good idea, but im trying.

Originally Posted by Nerv14

Its fine, my idea is insane so to put it lightly... sceptisism is healthy.

However, inflation involves printing more money but it doesn't inherently cause more borrowing. You are getting the cause and effect that we are having right now backwards.

We are borrowing money from overseas banks it is decreasing the value of our currency.

The insanely low interest rate that we have right now is just causing us to print more money, but just because money is easier to get that doesn't make us borrow more money overseas.


If there is one helpful thing that more inflation will do, it reduces the amount of money that we can borrow and lowers our debt because no country will care much about the s*** currency that we owe them. That will also make it harder for us to borrow more money in the future, so we will have to ballance our budget or our currency will completely collapse (which is already happening right now).

Inflation harms basically every part of the economy, but it will reduce our debt... but it doesn't seem worth it at all.



thx for commenting on my reasons for why inflation may be helpful.


I am pretty sure that my way to get out of the debt is not a good idea, but im trying.

Originally Posted by anonnymous

You are to be commended for trying but my advice would be to actually read the pdf that was posted in the original post. It explains things quite clearly. No matter how you may see things, inflation is not good unless you are the one who gets to spend the money first and which most everyone does not have that opportunity. Simply put, if the dollar tanks then it is all over, you will be lucky to find something to eat six months later unless you can grow it, life as everyone has come to know it will end.

This all can be avoided but people do not want to do what is prudent and right and in so doing invite disaster.

Originally Posted by Libre

I have been talking about this without much luck since I first started posting here.

Here is a link to an article on the Peter G Peterson Foundation which has David Walker, recently resigned Comptroller General of the United States as its president.

http://www.nytimes.com/2008/07/14/us...2cc&ei=5087%0A

I always make the same analogy; the tooth is festering and we can either go to the dentist now and endure some pain, or we can continue to put Anbesol on the tooth and end up in the hospital with sepsis. The choice is ours.