So that's how the national debt affects inflation. Money printing. Now maybe we didn't print all that money just because of the national debt, but it's only a matter of time before we try to monetize our way out of it. We see the damage just a taste of it causes. The Fed is right to get serious about tackling inflation.
Ok, so what you're quoting now is probably a monetarist position, which says (among other things) that control of the money supply can allow government to heat up or cool inflation as needed, and therefore monetary control should properly be seen as a mechanism through which to balance economic cycles. Now at least in your favor this time this
has been a conservative position, notably in the 70's and early 80's, but seems to me to have made a resurgence lately. Ironically, though, this theory, too, places the reigns of economic stability in the hands of big government, which you'd think wouldn't be a popular notion among conservatives. If you dug into it I suspect you'd find that more left-wingers nowadays propose this theory rather than right-wingers, probably for this reason.
Let's be clear: is this
your position? I would see little purpose to summoning quotes unless they express something you believe, right? If you say it
is your position I can know how to proceed from there.
Now we've been talking about the issue of which is worse, a default or runaway national debt but there's another issue on the table which is also a which is worse question between balancing the budget or continuing to run massive deficits. Running the pros and cons on that one is a bit easier[!!!] and it seems like the benefits outweigh the problems. Minor short term pain for great long term gain. And no financial apocalypses necessary.
My exclamations, of course. It's a bit easier so long as balancing the budget is the a priori goal of fiscal policy. If keeping the world from being catapulted into turmoil is a goal then it's not a bit easier at all to reach this conclusion. Indeed, as I've mentioned elsewhere if the U.S. magically balanced its budget the results would be catastrophic; basically there would be a global liquidity crisis, all financial systems would melt down, and I imagine the collapse of the world economy would usher in the necessary next phase, which would be one-world government. If this is what you want then by all means, cut off the supply of the world's most necessary collateral (treasuries). I hope you realize that a vast amount of businesses worldwide do business in USD only, and the means by which their local banks can produce the currency to provide them with liquidity for their debts is USD denominated debt. Guess what happens when there's a run on collateral...