Threethirty
I think you need to broaden your reading beyond rants on the blogosphere. You also need to understand the difference between Quantitative Easing, the Government providing backing and guarantees and "Printing Money out of thin air".
You appear to float the idea the US can solve its problem by simply printing $16,400bn and pay off the debt and then print a further $1,300bn a year to Fund the Federal deficit. Whilst I not saying an element of printing, with the negative consequences, will be required to solve this, its usefulness is limited. In short, if any government over does the printing they become Zimbabwe!!
Should the US just print $16,400bn and then pay back its creditors, there would be a total loss of confidence in the US dollar and if anyone was to lend money to the US in the future they would insist the loan was in a currency other than $US and the interest rates would be punitive. Printing the equivalent of the annual US GDP would be hugely inflationary globally. If you think HK property is expensive now....
The blog you highlighted was highly emotive, but behind the emotion it is saying exactly what I am saying, US Debt is out of control and the negative effect of that will be felt markedly around the globe. Rather than propose a solution the blog chooses the lazy option of apportioning blame.
Printing is not the solution, Taxing Multinationals is not going to happen. Taxing the 1% must be done, but won't generate enough money. It's time for America to "Eat it's brocolli" and raise its tax revenue and cut its spending. It must accept this will be recessionary, there is no silver bullet.
Given the amount required, the bulk of the US populace, being the middle class, has to be targeted. On the other side of the ledger, spending cuts are required and again given the bulk required, Defence and Social Security Entitlements have to be targeted.
Maggie Thatcher said, "You cant buck the market". The Party needs to end before the International Money Market shuts it down. Put down the champagne and caviar and eat some brocolli.
Last edited by Liam Gallagher; 29th Jan 2013 at 00:55.