Monday, February 09, 2009


We Must Face the Music with Banks

If the government borrows money for the stimulus, it will either have to print money or raise taxes in order to pay it back. Raising taxes is in effect robbing Peter to pay Paul, and printing money means devaluing the currency and that is tantamount to robbing Paul to pay Paul back with inflated currency. That does not address the problem we are facing and is just a way to treat the symptoms and defer the real solution.

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