Writer Stephanie Kelton claims that deficit and debt are no problem at all because the government can print money. She ignores the fact that deficits create debts, and debts carry interest charges that can be a frightful drag on the economy. (See: "The federal budget isn't what needs balancing," Wednesday)
Printing excessive amounts of money leads to inflation and devaluation of the currency and all fixed financial instruments such as bonds, notes, CDs and insurance policies. God forbid that the debt might eventually have to be repaid through higher taxes or defaulted on.Currently, interest charges are abnormally low thanks to the Federal Reserve giving money to the banks at close to zero interest. If interest rates were closer to normal, the interest would consume almost all federal revenue at projected levels of debt in 10 years hence.Look at what happened to Germany in the 1920s. History told that tale, which eventually resulted in World War II and 80 million dead.-- James R. Anderson, Richland HillsHave more to add? News tip? Tell us
