Our deficit hysterians love to raise the specter of China. Supposedly Uncle Sam is at the mercy of the Chinese, who have a stranglehold on the supply of dollars necessary to keep the US government above water. If the Chinese suddenly decided to stop lending those scare dollars, Uncle Sam would be forced to default. Can anyone, please, explain to me how the sovereign issuer of the US dollar—Uncle Sam—could ever run out of his supply of dollars? Please, give me one coherent explanation of how that could happen.OK. Here we go. Let us say that Obamacare promised us whatever heart treatment we needed for a fixed price, but there is simply not enough productivity to support the cardiology industry demanded. Obamacare will raise the price offered to infinity.
That example may be disputed, granted. Congress is likely not to pay the price of infinity. However, the other implication of Randall is that we can always print up our interest payments, true. But Congress cannot guarantee that the dollar is still a valid currency while doing so. Because, you see Randall, if Congress does prints money then the private sector will have to pay infinity for cardiologists. And that is as effective a bankruptcy as anything else, and we sill pay off our debt, with wallpaper.
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