An idea that could only be forced on the USG - never done voluntarily. http://burndownthefreakingmission.com
The Gold
Report: Doug, at a recent conference you said that the U.S.
ought to default on its national debt now. Why that rather than
letting it play out?
Doug Casey:
Several other things almost equally radical should be done besides
defaulting on the debt. I recognize that an outright default is
most unlikely, but the national debt should be defaulted on for
several reasons.
To start with,
once the U.S. government defaults on its debt, people will think
twice before lending it any more money; giving politicians the ability
to borrow is like giving a teenager a bottle of whisky and the keys
to a Corvette. A second reason is that the debt is an albatross
around the necks of the next several generations; it's criminal
to make indentured servants out of people who aren't even born yet.
A third reason would be to overtly punish those who have been lending
money to the government, enabling it to do all the stupid and destructive
things that the government does with that money.
The debt will
be defaulted on one way or another. The trouble is they're almost
certainly going to default on it through inflation, by destroying
the currency, which is much worse than defaulting on it overtly.
That's because inflation will wipe out the relatively few people
who are prudent in this country, those who are actually saving money.
Because they generally save in the form of dollars, they're going
to wipe them out financially.
It's just horrible.
Read more at www.lewrockwell.com
Runaway inflation will reward the profligates who are in debt –
people who've been living above their means. And punish the producers
who've been saving and trying to build capital. That's in addition
to the fact it will destroy millions of productive enterprises.
A runaway inflation is the worst thing that can happen to a society,
short of a major war. They just should default on it honestly, as
it were.
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