“I can’t be out of money because I still have checks.” This is a silly remark made to make fun of people who never balanced a check book. Well, it was just a silly remark. Now the government is putting it into practice.
The government has just signed just under a trillion dollars in stimulus plans. The problem is that the government doesn’t have a trillion dollars and the countries that it would normally borrow from (Japan or Egypt to name two) have no money to give. That means that the only way for the government to come up with the money that has been promised is to print more money.
There was a time when the gold standard meant that the government had enough gold to back up the money that was circulating. That changed on the day that the government needed more money than it had security. It changed its standard and began printing on demand.
It is time to change again. The American people have to demand that the government work the same way each of our homes has to work. The accounts have to be balanced and if there is no money in the account then it is time to stop spending.