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<p>[QUOTE=&quot;Cloudsweeper99, post: 1203698, member: 3011&quot;]It is not my intent to paint a rosy picture.&nbsp; It is to enable people to think about this issue ahead of time, before the total media panic sets in so they can decide with a clear mind.&nbsp; It is also my intent to encourage people not to blindly accept what they will probably hear in the near future.</p><p><br /></p><p>The “normal” way for FRNs [or their spendable electronic equivalent] to come into existence is through debt creation.&nbsp; Conversely, the normal way for the money supply to decrease is through debt repayment or default.&nbsp; The money is the debt and the debt is the money.&nbsp; You are correct that the Fed can issue more, but only if (1) the government borrows more or (2) the Fed purchases other assets.&nbsp; But I was only addressing the default.</p><p><br /></p><p>Regarding the printing of money and hyperinflation, my comment was directed toward the situation of a debt default, which would be massively inflationary.&nbsp; In that situation, it makes no sense to issue more debt to increase the money supply, but it makes total sense to issue US Notes to stem the problem of a collapsing money supply.&nbsp; In that situation, the US Notes would not be inflationary.[/QUOTE]</p><p><br /></p>

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