Saturday, December 01, 2012

Once in a while he gets it right....

We can print, borrow, tax or just steal all the money we need. Anyways, even the great tight wing economist, Milton Freeman  has said that deficits don't matter except it helps keep the politicians from going nuts and buying every voter.

Nice try, right. Nothing stops the fear mongering. What happens to the "fiscal cliff" bullshit a few months from now? Squat!!!

Fighting Fiscal Phantoms -

For we have our own currency — and almost all of our debt, both private and public, is denominated in dollars. So our government, unlike the Greek government, literally can’t run out of money. After all, it can print the stuff. So there’s almost no risk that America will default on its debt — I’d say no risk at all if it weren’t for the possibility that Republicans would once again try to hold the nation hostage over the debt ceiling. But if the U.S. government prints money to pay its bills, won’t that lead to inflation? No, not if the economy is still depressed. Now, it’s true that investors might start to expect higher inflation some years down the road. They might also push down the value of the dollar. Both of these things, however, would actually help rather than hurt the U.S. economy right now: expected inflation would discourage corporations and families from sitting on cash, while a weaker dollar would make our exports more competitive.

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