Originally Posted by lordikon
Not paying back the debt means that countries lending money to us lose faith in our ability to pay back out debt at any time, and then money lent to us starts having increased interest amounts, which means it is even harder to repay, and you end up in a vicious cycle much worse than we're in now.
If central banks are nationalized, then government will no longer need to borrow money from other banks. Government can then "print" all the money it needs at zero interest.
Some or all government debts can either be voided or paid back (simply by "printing" new money).
Printing a ton of extra money will devalue the currency and make inflation go crazy, effectively cancelling out all of the printing of extra money.
Treasury department and congress can monitor inflation/deflation and pay back (or void) debts slowly or quickly, in order to maintain a stable economy. Yes, "printing" money and overspending does cause inflation but we are currently in a deflationary economic environment which is being counteracted by massive government spending and loose central bank lending policies.
Paying back the debt is realistic, the country has been in and out of debt many times in the last century, no reason to believe we cannot do it again
The US federal government has been in debt since 1837.
The great depression was (economically) ended not by less government spending, but by spending more!
Paying back $16 trillion in federal government debt would cause massive depletion of the money supply (deflation) and more bankruptcies. Bankruptcies and massive deflation would lead to much higher unemployment and increased poverty, which is what happened during the great depression.
If you still think all the national debt can be paid back (without "printing" money or without voiding some debts), watch this.
EAT THE RICH
http://www.youtube.com/watch?feature=player_detailpage&v=661pi6K-8WQ#t=136sEdited by Partol - 10/16/12 at 3:40am