[Peace-discuss] The money was there all along

[John W.]

On Thu, Oct 16, 2008 at 12:21 PM, Bob Illyes <illyes at uiuc.edu> wrote:

Actually, John, we don't have to borrow it. We can also "print" it, with a
> little stealth help from the Federal Reserve. The usual image of Treasury
> printing more bills is not the way it is routinely done.


Yeah, I don't understand much about how it's done.  I guess I've labored
under the common delusion that the Treasury Dept. literally prints more
money.



> The problem with printing extra money in any manner is that it tends to
> produce general inflation in the long run. It is favored by politicians who
> aren't willing to raise taxes. In the short run, they can have their cake
> and eat it too, like the "investment banks", which had their own
> non-governmental money printing presses.


Well, either way - borrowing the money or "printing" it - it's fiscally
irresponsible and unsustainable.  That was my point.  A viable economy has
to be based on ACTUAL productivity - making REAL things that the world needs
- and not just on shuffling papers around to create the illusion of
prosperity.
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