written by reader Is it right to burdon the next gneration with this gerations debt…debate solutions

February 16, 2014

This thread came about due to a discussion (many) elsewhere.
Myron commented::
……..yet are naive enough to believe that politicians will keep their promises. You state ” government guarantees repayment of the funds borrowed’ well, how is that working for your? They have only managed to rack up $17. TRILLION in debt that can never be repaid in sound money! The only way they can even begin to meet the total obligations they have amassed is by continuing to do what they have always done, DEBASE the currency. If you are prepared to accept 2c in purchasing power for each dollar you possess, then indeed there is reason to be optimistic.
I replied:
Not meaning to be at all rude, your reply encapsulates your general theme of returning to something like a gold standard. As many writers have said, we are running up a debt for future generations that can never be repaid. Thats ‘never’ if currency stays the same value. However, all babies are born into this world without a penny in their pocket. So whether a $ buys them a home or a stick of gum is irrelevant to them so long as their wages are relative to cost of living. A v simple way to reducing their inherited debt is to devalue it in real terms………… a trillion now buys a stick of gum and they earn a grillion pm in wages. This places the loss/devaluation on what the previous generation has saved. I see no other way to reduce the debt and get those that have caused the problem to pick up the tab.
Have you got a different solution?

Well have you?

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