View Single Post
  #52  
Old 01-16-2009, 07:29 PM
420SEL 420SEL is offline
Registered User
 
Join Date: Jul 2000
Location: Toronto, CANADA
Posts: 1,193
Quote:
Originally Posted by Howitzer View Post
I think its only wise for a government to use its funds as a weapon against a financial collapse.
Herein lies the problem. The Government does not have its own funds to use in this fight against financial collapse. If the Government were in the position of having been sitting on a huge reserve of cash prior to the financial collapse, you could more easily make the case that using those funds was prudent. However, the Government had no such reserve. It is using funds it will have to appropriate from those who were prudent enough in their afffairs to have been able to retain capital (through borrowing or taxes) or from future generations, or it will have to borrow them from abroad, or it will have to create more fiat from thin air. None of these options are remotely prudent, and 2 of them are potentially disasterous in fairly short order.
__________________
Jason Priest
1999 E430
1995 E420 - retired
1986 420SEL - retired
Reply With Quote