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To: Vermont Lt
When the government has to service their debt, where are they going to get the dollars to do so? Dollars that are being hoarded. They will increase taxes. And the rich are not going to foot this bill. Gas tax is the obvious first choice. Other types of consumption taxes and tariffs is the second place. That drives production even lower.

The Feds will just print it. You are pretty ignorant about everything....

270 posted on 01/18/2015 7:03:23 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

Ok, they print it. And the fed buys Bonds. So you increase the debt service. Of course, the fed will repay a portion of that interest, but it increases the money in circulation. The only thing that will cause is a steeper inflation when productivity slows to a stop.

The end result is the same.


272 posted on 01/18/2015 7:47:11 AM PST by Vermont Lt (Ebola: Death is a lagging indicator.)
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