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To: economist-student
The only solution is either outright default to our foreign obligations or "inflate or die".

Why do we have to do either?

25 posted on 03/21/2006 2:48:17 PM PST by Toddsterpatriot (Why are protectionists so bad at math?)
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To: Toddsterpatriot
Why do we have to do either?

To keep away the Langoliers!

27 posted on 03/21/2006 2:52:53 PM PST by Petronski (I love Cyborg!)
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To: Toddsterpatriot
Why do we have to do either?

You have to do it because you are in debt and have to finance a trade imbalance in the amount of $65 billion a month. There are two ways to pay for the trade: 1) you print more paper money which delutes the value of paper assets - essentially deluting ownership in the US, or 2) you hike the rates and pay a higher premium to raise additional funds.
30 posted on 03/21/2006 3:42:17 PM PST by ARCADIA (Abuse of power comes as no surprise)
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