Reasonable estimates now place the soaring Bush administration budget deficit at more than $600 billion for the current fiscal year. The federal government, whose gargantuan existing debt already burdens American taxpayers, must again become a borrower.
The Federal Reserve finances much of these deficits by creating new money, which lowers the value of everyone's savings, pensions and insurance. The policies being followed by our nation's leaders are the opposite of what should be done to climb out of the persistent recession.
A nation cannot spend itself into prosperity any more than a government can require water to flow uphill.
KEN HOVEY
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