Unlike the federal government, states cannot deny reality by borrowing without limit. The Obama administration's "stimulus" package in effect shared the use of Uncle Sam's printing press for two years. But after that money runs out, the states will be back where they were. Even if Congress goes for a second round of stimulus funding, driven by the political panic of bankrupt Democratic governors, it would only postpone the reckoning.Will America be forced to relearn what happens when its government runs the printing press to finance spending? That's exactly what happened in the decade of the 70s and on into the early 80s. It may already be too late to avoid repeating the double-digit inflation that ensued in America due to deficit financing of the Vietnam War.
No, it won't ever get as bad in the United States as it is in Zimbabwe. Fortunately, we the people will turn the morons out of office before then. Hey, 2010 isn't that far away. Spendthrifts are already looking over their shoulders.
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