Insofar as most people think at all, most people think that our government’s deficit financing (borrowing) will leave today’s debt to future generations. We try not to think about it because it makes us feel a little bad about leaving our debts to our kids and grandkids. But on the other hand, we’ve done so much for the little bastards and bitches that they deserve to pay our debts–right? Better that “somebody” (even our own kids) be forced to pay our debts than we pay for them, ourselves.
After all, we’re Americans. We are therefore entitled to “shop til we drop” on credit–and when our credit cards are maxed out, we’re entitled to get newer credit cards. True–”somebody” may someday have to pay our debts, but so long as that “somebody” isn’t you and me, to hell with ‘em.
Peter Schiff [photo, right] disagrees with the idea that we’ll leave our debts for future generations. Schiff argues that today’s governmental borrowing will not be passed on as debt for future generations, but will instead cause immediate and significant increases in inflation that will dramatically afflict this generation. Inflation will essentially “tax” this generation by robbing all who save their wealth in the form of fiat dollars and/or dollar-denominated debt instruments.
By means of inflation, this generation (not the next one) will be called on to “pay” for much of the current debt.