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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><i><span style='font-size:13.5pt'>>…Many economists, including yours truly, considered these fiscal and monetary developments reasonable under the circumstances. It was, we argued, a good thing to run deficits in a slump, with little risk that these deficits would create any kind of crisis. It was also a good idea to print money, with little risk that doing so would lead to inflation… Krugman</span></i><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>John your theory will get a test very soon. If enormous deficits will really not hurt us, we will not need to worry a bit that government expenses at all levels and everywhere in the world, will be way up this year and their revenues way down. Let’s see if they can just print more money and make it all go away.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>If they do, why not just print more money instead of anyone going back to work? Why does anyone need to work? If we really can print our way out of trouble, why aren’t we doing it? My theory: we can’t print our way out of trouble. That would rob those whose reserves are in the form of cash, and those on fixed incomes such as pensions.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>spike<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>