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Politics : Politics for Pros- moderated
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To: Paul Smith who wrote (441651)8/20/2011 8:50:27 PM
From: unclewest1 Recommendation  Read Replies (2) of 793926
 
Good post. However, what gets lost in all this is the fact that there will never be a default by the Federal government. The government owes dollars and the government also creates dollars (printing press). The real risk is a currency value risk, not a default risk.

Thanks.

If owning the printing presses make such a difference why don't we go ahead and print $15 trillion and pay off all our debts. Then we could avoid all the principal and interest payments and save a fortune, and the country would be free of debt.

Of course the dollar would be worth squat but who really cares? After all, the Obama voters have no assets to lose to inflation or a currency collapse.

If you pay off a debt with devalued currency does that not constitute a de facto default? Or is that just a technicality?
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