lomiller
Penultimate Amazing
- Joined
- Jul 31, 2007
- Messages
- 13,208
This is what I posted about deficit spending. The misinformation is yours.
Sure just point to some other post instead of the one we are talking about, everyone is too stupid to catch on right

"The root cause (of inflation) is the printing of money to cover government deficits".
That can't be right. Everybody else is saying that I am wrong when I say that.
Everyone says you are wrong when you say that because you ARE wrong when you say that.
Even the post you do quote is wrong:
The government doesn't print money so the effect of borrowing to fund its deficit is higher interest rates. The Central bank has to buy back some of this government debt to counteract this and that is inflationary.
Higher interest rates is not the end result of deficits, deficits stimulate economic growth and increase the velocity of money. Government deficits mean you have more money chasing the same goods and services which can be somewhat inflationary inflationary. The Fed DOES NOT respond to this buy buying government bonds, it responds by slowing it's purchases of government bonds and allowing interest rates to rise. These actions counteract inflation they do not create inflation.
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