Deficits, Debt and Looming Disaster

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Letter Writer:

Leon Fainstadt, an insurance salesman and artist in Los Angeles

Date Posted:

Jan. 7, 2009

Letter:

The article seemed honest and sincere.  My only comment, which is general, is that most of the conversation is not dealing with the dire straits we find ourselves in.  The media is cheerleading and hoping that people in America suspend reality.  Our markets are in turmoil, and no amount of bailouts for the banks is going to change this reality.  We must either tell the truth or face the consequences. Unemployment of millions of our populace is neither a Democratic nor a Republican issue.  It is a human issue.  Let’s tell America where we really stand and pull ourselves out of this hole.


Letter Writer:

John F. Lindeman, M.D., of Chesterfield, Mo.

Date Posted:

Feb. 12, 2009

Letter:

Thanks for your article in the January issue of The Regional Economist. It is nicely juxtaposed to Mr. Bullard's article on the "lender of last resort," the Federal Reserve Bank. We are told that the current economic crisis is the most dangerous since the '30s. It seems that a difference between then and now is the nature of the currency—then it was real money, now fiat money; then a store of value, now a medium of exchange. It is national policy to reduce the exchange value of the currency at an annual rate of 2 to 3 percent. How does this change in the nature of the currency alter possible policy options in managing the current crisis, what does it mean in assessing the severity of both national debt and national deficit at future dates and what does it imply about solutions to the future liabilities of Social Security, Medicare and other promises of the government to pay?


Letter Writer:

Patsy Campbell of Murphysboro, Ill., retired from county health department as business manager

Date Posted:

Feb. 12, 2009

Letter:

I went to the web site to participate in the current issue poll. The choices were limited. What about these?

“There are numerous monetary ways the federal government can deal with the country’s current economic maladies.

  1. Do nothing.
  2. Tax and lend and receive money and interest back, with no debt.
  3. Tax and lend interest-free, receive money back, with no debt.
  4. Tax and grant, receive no money back, with no debt.
  5. Borrow and lend interest-free, receive money back, pay debt back plus interest.
  6. Borrow and lend, receive interest and money back, pay debt back plus interest.
  7. Borrow and grant, receive no money back, pay debt back plus interest.
  8. Create money and grant, receive no money back, no debt, pay no interest.
  9. Create money and lend interest-free, receive money back, no debt, pay no interest.
  10. Create money and lend, receive interest, receive money and interest back, no debt, pay no interest.

Congress and the executive can do any of the above singularly or any combination.

All of these alternatives are identified in OUR Constitution. See Article I, Section 8, Clauses 1,2 and 5.”

Personally, I favor items 8 and 9, with item 8 for infrastructure and educational projects and item 9 for all other projects. To learn more, see http://createmoney-saveoureconomy-reducefederaldebt.net.

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