And so the Federal Reserve agreest to buy up $600 billion in use bonds.  Sounds good, we are paying off debt arent't we? 

The answer is NO.  We are in fact playing with monetary policy, firing a salvo in monetary warfare, because we are left with few other alternatives to both stimulate our economy, manage the debt and spread the impact.  So we are "monetizing" our debt, that is printing more money to buy back debt.  

This may produce an advantage at first, because it makes the products produced in our country for export cheaper and it makes imports (you know - everything we buy) more expensive.  This makes the US economy more competitive, and seeks a flow of consumer dollars from other countries.  Can you say "taxation, in a sense, without poltical repercussion?"   But do we even make enough products anymore such that we can increase sales to the global market or for that matter produce lower cost products that satisfy our need for high quality at the lowest cost?  The answer is no, so in effect we are "taxing" our purchases of foreign commodities (paying a higher price)through monetary policy as a means of getting debt under control through revenue production.  A hidden consummer tax, but a tax nonetheless.

But let's look long term.  What happens if the world loses confidence in its reserve currency, the U.S. Dollar, and unloads its dollar reserves onto the market? China has $2 trillion (one seventh of our economy) of our money in its vaults.  This is actual money - not debt.  The resulting dollar crash could plunge the global economy into an abyss puntuatcted by horrendous inflation.

More money means more inflation, and the faster the money becomes devalued, the faster the debts are reduced.  This sounds good unless you own our debt.  If you do, you devalue your currency even further to counteract our fiscal policy.  The monetary warfare escalates.

This is not some boogey man in the closet scare mongering.  This is real, it is happening and there is little we can do about it except to demand responsibility.  It is A HUGE game of chicken being played out on the global monetary scale.  We find ourselves in this circumstance because we desired, as a country and individually, to live beyond our means.  We now understand just how economically connected we are all.  The consequences are very real.

I said it before and I will say it again - I am mad as hell and I am not going ot take it anymore.  It is time for THE gold standard of public admisnitration, ICMA, to stand up and take a position against the political inability to live within means that defines the budgetary management practices of our federal government.