Q: How do we pay off the National Debt? A: We inflate it away!

[pknopp]

Originally Posted by Loveshiscountry

Again, it's not cyclical. If it is then why say its unpredictable? It is predictable. We may not know the exact date of the crash but we know its coming and what caused it. Government has been the cause of our booms and busts.

Yep the tech bust was predicted. The housing bust was predicted and our monetary bubble is going to pop also.

[Goinback2011]

Arguing with O-bots about economics is a fool's errand.

[GHOSTRIDER AZ]

Originally Posted by Little-Acorn

We haven't paid off a dime of the National Debt since before WWII.

(Well, I lied, there were a few years in the mid 1950s when the Natl Debt went down, from $274 billion to $270 billion, we paid off a whopping 1-1/2% of it before it shot back up the following year and has never come down again)

Have you ever wondered why the government has never put a tax on savings and wealth?
Ha ha, fooled you. They HAVE put a tax on wealth, and it's been going for decades. It's called Inflation. And YOU have been paying it. That's why you're not rich now. Sucker.

There would be several way to cure this problem.
1. Reduce the size and complexity of the Federal Government.
2. No unfunded spending Bills.
3. No more borrowing from China
4. maybe a small deficit tax to pay off the loan or reduce it,
5. A final settlement with China.
6. Use our commerce we have with china to balance off the debt.
Meaning if you wish to make products for America , therefore our debt reduces.

Just a few ideas.:t hink:

[D-Towner]

Originally Posted by le roi

See, your understanding of economics is so factually flawed, that it's difficult to pinpoint exactly where you're going wrong. You have this bizarre idea that the national debt is causing inflation. In reality the national debt is a result of inflation.





Yup,

and we did it through private sector debt, which sits at about $59 trillion.

that $17 trillion is nothing more than the federal government's attempt to keep up with the huge levels of private sector debt that is driving up prices of assets. You have the cause-and-effect all backwards here.



That's why people invest their money instead of saving their money. It's why we have 401k's: The stock market does a good job of keeping up with inflation.

But we don't tax the stock market .. at least not very effectively. So because we tax WAGES instead of wealth, and wages don't keep pace with inflation, therefore the government must run big deficits in order to keep up with the cost of providing basic services.



No. Inflation increases wealth, as long as you have your wealth invested in something.

The group that inflation really screws are wage-earners, because in the modern era, wages haven't kept pace with inflation the same way that wealth has.

Can you please explain this one here?