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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: miraje who wrote (520631)	11/8/2012 8:59:56 AM
From: Jorj X Mckie	1 Recommendation Read Replies (3) \| Respond to of 793620

Unlike the Feds, the states and municipalities cannot print paper money. Sure they can. Whenever a state or muni sells bonds, that is creating money. The problem is that they have to convince people to buy their worthless paper that they will never be able to pay back. The federal government has the same issue, they just have a little more time to play with. If nobody is willing to buy their bonds, they can't create more money. Printing actual dollars simply divides the pie into more pieces and doesn't actually create anything.