NJ5 on 13 June 2009
| SamuelRSmith said: ^The debt is better in the government's hands though, wouldn't you agree? Governments can function with large deficits, private firms cannot function with large debts. Sure, it's not the final solution - that will be what will happen when the Gov't manages long period of budget surplus, and start burning off this large deficit, but it's better |
I guess that's true, but if done to a high enouh extent it leads to a lot of problems. Such as the potential of high inflation and distrust in the government's currency.
As Pyramid head said, several countries are starting to move away from the dollar... it's not gonna happen overnight, but neither do the solutions.
The governments always want business as usual, so they try to postpone the consequences of the financial problems. In the end that will probably make those problems bigger.
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