Pat Buchanan: The Weimar Solution

Townhall ^ | March 24, 2009 | Patrick J. Buchanan

[Poison Pill]

The problem with putting monumental amounts of money into circulation is, that was probably going to be the answer to fix the SS/Medicare shortfall coming due. Now it's the answer for too many things that can't work.

I think the Fed is betting that they can yank the money out of circulation at just the right time to avoid Wiemar style inflation. Pure hubris, or delusion. The machinery is far too complex.

The only way out is to admit the New Deal/Great Society was a failure and repeal all social spending and set about returning the Federal Government to it's Constitutional model so that we can repay our debts and live within our means.

We had the perfect chance to do this after Clinton, but Bush betrayed the base by spending like crazy and McCain was just a joke. Electing Obama was America's way of pulling the bed sheet over it's head and telling itself that if it just hoped hard enough, the Boogey Man would go away.

[ninonitti]

So, if the capital accounts begin decreasing, the so-called trade deficit will improve

The trade deficit improves when we stop manufacturing debt and begin manufacturing things.

As it stands now all we are producing are increasingly sophisticated instruments of debt which we export round the world expecting to be paid because of our cleverness.

China, Europe and Russia are calling it quits

[Kozak]

One more thing. If you really believe hyperinflation is coming, you should borrow every dollar you can and transform it into tangible assets......

[LowCountryJoe]

The trade deficit improves when we stop manufacturing debt and begin manufacturing things.

We do, in fact, manucfature things. However, the trade deficit only improves if the foreign customers are actually purchasing those things that get manufactored here and when Americans purchase foreign assets.

If foreigners were to purchase American assets -- and it need not be debt -- the trade deficit 'worsens'

[AndyJackson]

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