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Subject:  Re: Bogus Fiscal Crisis Date:  8/1/2013  3:11 PM
Author:  amassafortune Number:  400232 of 392


It seems many really believe we can print and take on more debt and not act responsibly without eventual consequences. 

Meantime, China, Russia, and others are taking very real steps that threaten the U.S. dollar as the world's reserve currency. 

The Fed has bought 31% of the debt the Treasury has issued. That means no one else wanted to buy it and the Fed had to "pretend" to buy it (couple keystrokes,... and here's the money). 

It is naive to think this can go on forever. The Fed thinks they are smart enough to pull back if the currency is threatened, but no other country in history has been able to stop printing once they have traveled this path. 

I'm with you. I think debt matters. I think every month of $85 billion being thrown at the market and other wasteful spending is a form of counterfeiting. Every dollar printed in excess of keeping up with economic growth devalues existing dollars. 

The problem is, as in September, 2008, everyone will "get it" within a few days after years of the problem being ignored or wished away with simple statements like, "Deficits don't matter."

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