The US has 75 trillions of unpaid for liabilities in a 15 trillion economy. How are we ever going to be pay for it? It's a number that cannot happen. So I don't worry about it. The far more interesting question is: what happens at the moment we realise that we can't pay 75 trillion?
Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other. If government spending is financed by borrowing from the commercial banks, it means credit expansion and inflation.
There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
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