Paul Krugman Answers Paul Ryan on Debt Crisis: We Can Print Money

Paul Krugman Answers Paul Ryan on Debt Crisis: We Can Print Money | CNS News

Liberal economist and New York Times columnist Paul Krugman

Paul Krugman on C-SPAN responded to House Budget Commitee Chairman Paul Ryan's warning that if the federal government continues running annual trillion dollar deficits that we will eventually face a debt crisis.  Krugman stated that wouldn't be so because the U.S. government can print more money and weaken the purchasing power of the dollar.  Krugman claims that "weakening the dollar would be a good thing."  He stated that the U.S. can't run out of money because we print our own cash.  He said it wouldn't cause interest rates to soar.  He said it would help our exports. 

With a weakened dollar, it's worthless and it's only backed by the American people.  The thing that concerns me is countries like China.  If they decide to default on purchasing our bad debt, it would have major repurcussions for the U.S.  I don't believe it would be good for the world market. 

It was just over a month ago that our Democratic politicians were saying that we need to increase taxes on the wealthiest 2% in our nation to generate more revenue.  If the Federal Reserve prints money on a continual basis, then why the need for tax increases in order to "generate more revenue?"  The demand to increase the tax rates on the American people has nothing to generating revenue.  It's all about control. 

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