At some point, the dollar has to give. You can't just keep printing money, and monetizing debt, and buying bonds, without the dollar imploding.
Sentiment: NEGATIVE
When I work with countries struggling to pay for budgets or finance trade deficits, I reflect on how Americans do not spend a moment considering the unique advantages of being able to issue bonds and print money freely.
Every dollar that is printed should not represent a debt to private bankers. It should represent an investment potential in the common good, in the common needs of our country.
I don't mind the government accruing debts as long as every dollar is spent effectively with a high return. That works out fine. If you accumulate debts and waste your money, that's, of course, a disaster.
One day we will have more inflation, and our bonds will bleed like a pig. The only reason for buying long bonds is short-term or as a desperate haven for terrorized investors. But the potential to make longer-term real money is naught.
Why should we use the Dollar even when we trade among ourselves?
When you're borrowing 40 cents of every dollar that you spend, that can't continue much longer. I think everybody really does understand that, and it's going to require all of us - those who are the most fortunate among us - but it's really going to require every American to contribute to a solution.
And I am convinced that a single focus on preserving the purchasing power of the dollar, in effect, guarding against inflation or deflation, actually creates a solid foundation for the greatest job growth and the strongest economy that America can have.
I know the Federal Reserve Bank can continue to print more and more money... but city and state governments cannot.
In this age, if the currency of a major nation collapses, or its access to borrowing ends, it just can't function.
In a world where wealth is growing, you can get away with printing money. Doubling the debt over the next 20 years is not a problem.