Brett Robson <jet_boy@deja.com> wrote in message news:<bbejh101ga@drn.newsguy.com>...
> On Mon, 02 Jun 2003 12:23:30 +0900, Declan  ...
> >
> >Brett Robson wrote:
> >> On Fri, 30 May 2003 18:20:12 -0400, "Kevin Gowan
> >> 
> >>>Did I ever say anything about the printing of money?
> >> 
> >> The term "printing money" is not literal. You decried FDR for destroying the
> >> value of the dollar, a deficit does the same thing.
> >
> >Not quite - Kevin was wrong, but this is incorrect too. A fiscal deficit 
> >does not necessarily "destroy the value of" a currency unit. In most 
> >cases an increase in the public sector borrowing requirement encourages 
> >inward capital flows from abroad, supporting demand for the currency 
> >unit. Even if a fiscal deficit is monetarily financed ("printing money" 
> >- which is not literal), there are conditions in which it can indirectly 
> >support gross purchasing power.
> >
> 
> 
> Which creates inflation. I wasn't refering to the forex.
> 
Inflation isn't always a bad thing. In Japan in particular a little
inflation might do a lot of good.

John W.