Gloucester Daily Times
---- — To the editor:
I have always said that most of the countries of the world are nothing but different states of America.
When the economy of the United States suffers, then all other countries suffer directly or indirectly. It is because America is the largest economy of the world and is also the largest consumer country of the world.
So, for the sake of all other countries, it is necessary to improve America’s economy. But it has the ability to revive the economy by artificial financing.
Today, President Obama is boasting that he has revived the economy from recession, no matter how slow it may be. How has he done that? He has printed trillions of dollars and distributed these to corporations, banks, mortgage companies.
He has also distributed free money to poor people, the middle class and others. He has also extended unemployment benefits to all Americans, so everybody has the money to spend and revive the economy.
On printed money, there is no obligation to pay back with interest. However, it can create inflation. But government can alleviate that problem by printing more paper money and giving everybody cost-of-living adjustments every year. So the American government does not have a money problem.
I hear America has borrowed some money from China. President Obama does not have to worry about paying interest on borrowed money or paying back the debt, because he has the ability to print money at will. China will never demand to get the borrowed money back because China is heavily dependent on America. Even though India is not directly dependent on America, its currency has gone downhill with respect to the dollar. It cannot print money because its economy is weak.
It has been forecasted by international financial institutions such as Citicorp that, by 2050, India will be the world’s largest economy, surpassing China and the United States. Until and unless India dominates the world market, America will remain in a superior position to print money at will.
Even though America’s deficit is greater than its GDP, it will reduce its deficit and debt slowly by printing money and creating inflation. Some deficit will be reduced by improving exports. That is why Obama does not worry about the deficit and reckless spending. Using executive power he is bypassing Congress at every opportunity to avoid spending cuts.
If Obama were president of an African country, where presidents cannot print money, he would be a complete failure. He knows he cannot fail in America. He can create paper money to pay for everything and give it to everybody.
It can be called artificial financing, but this method of financing, Obama has created the largest deficit in human history. He knows any deficit can be eliminated slowly by printing money and by improving employment and exports.
Undoubtedly, Obama’s legacy of artificial financing with paper money will be followed by every American president— especially liberal presidents.