Printing money may permit payment, but it will reduce the purchasing power of the currency through inflation.
- Zimbabwe (2008):Massive money printing resulted in a 100-trillion-dollar note that could not even buy a loaf of bread.
You cannot produce wealth by printing it. The aforementioned realization coupled with the fact that there is no apparent strategy for controlling deficit spending leads one to conclude that “Insoluble Insolvency” will become a reality notwithstanding the observation that economic academicians are unable to wed such a phenomenon into their current literature.
Please see this page for a definiton of Insoluble Insolvency.
This article has been written by a person who worked for five Presidential Administrations, primarily in the White House Office of Management and Budget. Also please see The Birth of Insoluble Insolvency; nothing will happen unless state and local governments assume a leadership role!
Our request is straightforward; the federal government is on an irreversible path to insolvency. In lieu of spending all of our energy on attempting to prevent insolvency we should be working on how to minimize its negative impacts; see this website for a library of relevant research.
Center for Regulatory Effectiveness
