[ExI] undercover at Walmart

[BillK]

On Sun, Feb 22, 2009 at 4:23 AM, Rafal Smigrodzki wrote:
<snip>
> But back to the deficit. US "deficit" is denominated in US dollars,
> meaning that the government can and as we have seen recently, will
> print enough of them to satisfy foreign demand. I have no idea why
> this should be a problem. The "deficit" is a monetary artefact, not a
> feature of differential productivity, therefore it does not affect the
> standard of living in the long term (at least not directly).
> -------------------------------------
>


This is an incredible claim.
The current financial disaster is due to the US deficit creating funny
money in previous years and artificially inflating the value of
everything all around the world.

You are correct that as long as people around the world keep accepting
the false money, then the US can keep printing it. But that time is
coming to an end.

The 'deficit' has already affected the standard of living. First by
creating a ten year boom, now by creating (at least) a ten year
depression.


BillK