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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (106348)	2/23/2008 1:36:01 PM
From: neolib	Read Replies (2) \| Respond to of 306849

Going out now.. but just couldn't resist asking you what mechanism the Fed would use to inject/withdraw liquidity were there no Federal Debt? A fiat currency can exist just fine with no Federal Debt. The government does not need to borrow from anyone to print money. Don't confuse a particular set of historical rules for the totality of systems that can work. Any laws constraining Fed actions to a federal deficit can be changed very easily (and cheaply) far before the USA is either running a surplus, or is entirely debt free.