>>A puzzled, somewhat skeptical Alice asked the Republican leadership
some simple questions:
“Will not the printing and selling of more stocks and bonds, the building
of new plants and the increase of efficiency produce more goods than we
can buy?”
“No,” shouted Humpty Dumpty, “The more we produce the more we
can buy.”
“What if we produce a surplus?”
“Oh, we can sell it to foreign consumers.”
“How can the foreigners pay for it?”
“Why, we will lend them the money.”
“I see,” said little Alice, “they will buy our surplus with our money. Of
course these foreigners will pay us back by selling us their goods?”
“Oh, not at all,” said Humpty Dumpty, “We set up a high wall called the
tariff.”
“And,” said Alice at last, “how will the foreigners pay off these loans?”
“That is easy,” said Humpty Dumpty, “did you ever hear of a
moratorium?”<<
Where did the money go? US interests were owed $30 billion by European and Latin American interests in 1930, most of which was never repaid. |
