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Even more nonsense about the federal debt. He clearly does not understand how the monetary system in the US works.
One question to him: How can a sovereign issuer of money, with no foreign denominated debt, with a floating exchange rate run out of money/risk default?
Answer: It can't (unless it chooses to). The main thing to worry about is inflation. But I haven't seen one Republican make a convincing argument that inflation is going to be a problem in the short/medium term.
This whole budget hysteria is going to hurt the US economy dearly. Can't support any person who will hurt economic growth based on misconceptions.
I would argue that the writing is on the wall with regard to inflation. We are now borrowing and printing 43 cents out of dollar that we spend as a country. There is no way we can possibly repay 14 trillion dollars in debt when our ongoing deficits are 1.6 trillion dollars a year.
Because of this reality, we already see a reduced appetite for U.S. debt. Do you realize that the Federal Reserve is currently printing money and buying up to 70% of U.S. treasuries? This is what economists call “monetizing the debt,” simply printing more money to cover shortfalls, and it’s an obvious recipe for serious inflation.
When government simply increases the amount of money it prints, that’s more money chasing the same amount of goods and services. Doesn’t it have to result in higher prices? Of course it does, and all Americans suffer. Also consider the fact that over half of our currency is overseas -- if the dollar stops being used as a world’s reserve currency, those dollars will come back to America, and massive price inflation will be the result.
As for economic growth, I believe my 8 year term as governor suggests that I do understand what conditions are necessary for economic growth. One proposal I really like is the Fair Tax, which I believe would blow the lid off of jobs in the U.S. -- learn more at FairTax.org.