How to go through the great depression at 95% plus employment.

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Originally Posted by SilverOne

"Will the US Devalue the Dollar?" by Darryl Schoon, FSU Editorial 03/03/2010

Inflation destroys the value/cost of liabilities by eroding the value of money. Debts are paid back with inflated currencies, a process which benefits the debtor and injures the creditor. This is why reserve currency nations usually inflate their way out of debt by printing what they owe.
Devaluation is another option afforded reserve currency nations. By devaluing the value of their currency, the value of what they owe falls relative to other currencies. Again, the benefit is to the debtor at the expense of the creditor.
Taxation is another option but is no longer available to the US, as its liabilities are now too high. It would be like forcing the elderly and morbidly obese to engage in strenuous exercise to regain youth. Of the three, inflating away debt is by far the preferred option but it is one the US can no longer choose.

The debt of the US is valued in US dollars. They can complain and they can get nasty but they can't stop us from printing as much money as equals our national debt. What they can do is to stop selling us goods. And that means that the lobs outsourced to China would come back. China don't have a navy. They can't come here. We have a navy we can go there (Really bad idea) (really really bad idea) (I can't say it enough Really bad IDEA) If they were to arm their army with bambo sticks they could beat us in a shooting war. Well a shooting war and a hit you over the head with bambo stick war. They have more people in their army than we do in the US. We would run out of bulets before they ran out of people. We can inflate away the debt if we are willing to deal with the concequences. Now if people stop being willing to cover our budget shortfal (and that is a really inadiquate term to use for it) We will be left with no choice but to do so. Welcome to hyper inflation. Electronic money will be really good for that. Thery earning 100% a day interest on the money in your checking account?

We need the economy at 100% and we need it now.

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Originally Posted by 4Horsemen

Printing money from nothing to pay down something is never effective. where did you learn that?

It makes the money worth less. so the debts are worth less and the savings are worth less.

Originally Posted by 4Horsemen

We need to get back to the Gold Standard, period. find out where our Gold Reserves are being held, establish it once again and start from there. if we don't have any more Gold then we're fk'd but I'm sure we got some somewhere.

Ya and how long would that last with a 5% of GDP trade imbalance? Once the gold is gone what then? Print paper money? Hello we went through this in what was it? 1972? 1973? Nixon was responsible for saying well if they want our money for doing work well then the cheapest export we can have is a piece of paper for their hard work.

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One thing I didn't put out top was that there needs to be pressure put on debt to keep the debt coming down. The natural corce of things is to forget there is a problem when the pain goes away. Mu plan will take the economic pain away real fast. so go figure.