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View Diary: Platinum coin might be legally required in absence of debt limit increase (144 comments)

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  •  Is that in the tax code? (2+ / 0-)
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    Mr MadAsHell, gecko

    We didn't have a Congressional controlled debt ceiling during WWII when our debt grew to at least a third higher percentage of GDP (127%) than today and when we had a Democratic controlled Congress. Of course, that debt was not a problem because the debt was purchased by the American people as war bonds which stimulated our domestic economy when they were cashed to buy houses, cars, appliances or anything else. More federal revenue was generated by the increase in economic activity than the interest being paid. Along with high top marginal tax rates to prevent war profiteering, the maturing war bonds retired the national debt in about a decade.

    Too bad Bush didn't read any history of WWII when he sold the debt from our multi-front war on terror to foreign governments and to transnational corporations. If he was not instead bound by Jule Wanniski's Two "Santa Clause Theory", he should have issued and marketed war bonds to the American people. When Bush cut taxes in 2003 it was the first time an Administration had ever done so during a time of war. It was also a huge mistake which led to uncontrolled profiteering.

    Really don't mind if you sit this one out. My words but a whisper -- your deafness a SHOUT. I may make you feel but I can't make you think..Jethro Tull

    by RMForbes on Wed Jan 09, 2013 at 12:21:02 PM PST

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