The Fed isn't just printing paper per se.
Do remember - there is an OBSCENE 26 TRILLION dollars hoarded up and gathering dust.
The fed prints the money based upon bonds, and are purchased by those funds seeking for either safety or at least some returns.
And those monies will be circulated into the economy to bring about jobs and distribution of wealth.
As more money is circulated, more wealth is generated, with more GDP and the tax revenues will be able to pay off loans.
What is critical is that the US economic gurus in govt makes sure those funds circulated ensures returns, and not dumped into the hole where it is
Returns such as infrastructure improvement, so that productivity can be increased and thus more profits to be shared around. Funding for targetted
manufacturing start-ups of innovative entreprenuers identified transparently.
Investment in education for the young and skill improvement for the current generation to upgrade to better tech and wages. Help for the unemployed
temporarily to get by while looking for job or starting entreprenuership. Ensuring every citizen remains healthy with healthcare so as to contribute
to society. There is more, but many can get the drift.
There is absolutely no reason for USA to fail, unless it thinks taxing the poor and middle class while letting the rich and corporations go free and
austerity is a better path, as spain with its 26% unemployed, and UK mired in a recession had done.
A nation should not use debts for social expenditure. It should be based upon savings and from tax revenues. But all that is too late. Now is the time
for pulling up americans from the morass debts had gotten us all in, by ironically, using that system, as it is the only way to get out in one piece.
When the nation is stable, that's when finacial changes will have to be made, but not now. Any other way and we will all be doomed.
16-9-2012 by SeekerofTruth101 because: (no reason given)