Kenwas, are you saying that as 'Taxpayers', the 'Bankers' of our Government, we don't have the right to foreclose or call in the loans because the collatoral for the loans has lost value? Just asking.
I am saying that when the Treasury buys the same bonds that it issues itself by just printing money to pay for them, we are either going to dramatically decrease the value of the dollar or dramtaically raise inflation or both. All the borrowing will have to be paid back or we will just be like a third world country where the debt consumes 80-90% percent of the GDP. Our children will get stuck with the bill.
A VAT tax such as the 5% tax Craig suggested will help to cover the cost but will only legitimize the spending which is the real problem. It will also effect the poor in a negative way more than anyone else and will more than wipe out the much ballyhooed Tax reduction for 95% of Americans.
We are currently just transferring balances from one national credit card to another always increasing the actual debt owed. We all know where that leads.