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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (47079)	11/10/2010 3:01:25 PM
From: Little Joe	Respond to of 71588

Well I suspect that eventually we will default anyway. lj

To: TimF who wrote (47079)	11/17/2010 9:25:50 AM
From: Peter Dierks	Respond to of 71588

if you have a huge debt, but low or non-existant deficits, and with most of the debt with a fixed rate of interest for a long term. With little need to refinance, or little or no new debt, you can inflate away much of the old debt. OTOH with huge deficits, and with much of the debt in short term to mid term securities, if you try to inflate away the debt you increase the interest rate demanded to roll it over and to add to the debt level, so even if we are prepared to pay the damage from inflation, inflating away the debt would not work well for the US. Tell that to the idiots in Washington. It is likely that some think it will work for the US. It is also probable that many in Washington have so little budgeting understanding that they don't understand how they are screwing America for generations.