Quote from: Iseree22 on September 30, 2011, 08:57:30 AM

Do you live in a country that creates its own currency?

And your Government also has 'debt'?

And you think this 'debt' is evil, that it must be paid back using tax revenues ?

Well I'm sorry to inform you, but you have been the victim of a very effective propaganda campaign. A country that creates its own currency will never have an inability to pay back its national debt.

Has your country been experiencing economic growth in the last decade or so ?

And have also been experiencing inflation ?

I'm sure that you understand one of the basic rules of economics, that for an inflation to occur then the currency base must be expanding? Then if your experiencing inflation and economic growth, then someone somewhere is pumping a heap of money into your economy. Who? your Treasury is, Government Debt functions like money. So when your national debt is increasing, the monetary base of your economy is expanding.

http://www.atimes.com/atimes/Global_Economy/MG27Dj02.html

inflation occurs essentially becuase more worth is created in a country and needs money to be available for it.