http://www.cato.org/publications/commentary/economic-judgment-day



The current debate about the debt vote is minor league compared
to what will happen when the government literally cannot spend more
than it is taking in. That time may be nearer than you think. It is
true that the U.S. government can always "print” money to pay its
bills, but at some point, printing more money becomes
self-defeating because the resulting increase in the government
bond interest rate and required interest payment will spiral out of
control. At that point, the government will be forced to operate on
a pay-as-you-go basis, as any individual or business is forced to
do when they can no longer get credit. Several California cities
are now in this situation.....





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