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View Diary: The fake debt crisis (13 comments)

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  •  You redeem the bonds (3+ / 0-)
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    Roger Fox, Odysseus, Sunspots

    by creating money.  That's why its called a fiat currency.  The economy needs spending and stimulus to get going, not austerity, which historically has not worked.  

    Washington should print more now and spend it.  Inflation can be managed, since the underlying value in the economy is there.

    •  Can you give us some examples where ... (0+ / 0-)

      creating "money" out of thin air has worked?  No theories, actual examples ... the more the better.

      "Two things are infinite: the universe and human stupidity, and I am not sure about the universe." -- Albert Einstein

      by Neuroptimalian on Wed Nov 07, 2012 at 05:30:31 PM PST

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      •  What are you asking? (0+ / 0-)

        All fiat money is created out of thin air.  

        Politics is the art of the possible, but that means you have to think about changing what is possible, not that you have to accept it in perpetuity. Notes on a Theory

        by David Kaib on Wed Nov 07, 2012 at 07:28:16 PM PST

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        •  Yes, it is. (0+ / 0-)

          Show us how doing so has "worked" on a large scale to save a sinking economy without any major downside like inflation.

          "Two things are infinite: the universe and human stupidity, and I am not sure about the universe." -- Albert Einstein

          by Neuroptimalian on Thu Nov 08, 2012 at 07:39:16 AM PST

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          •  You're question doesn't make any sense (1+ / 0-)
            Recommended by:
            TKO333

            Money is created every day.  All money in the world today is fiat money. Are you asking whether monetary policy can end a recession without leading to inflation?

            Interesting to to call inflation a major downside.  Some inflation would be healthy, and mass unemployment is far more destructive - if you care about the people over financial institutions.  

            Politics is the art of the possible, but that means you have to think about changing what is possible, not that you have to accept it in perpetuity. Notes on a Theory

            by David Kaib on Thu Nov 08, 2012 at 03:45:00 PM PST

            [ Parent ]

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