is USA really bankrupt

beardo said:

If they want to do a stimulus to help the economy I have an idea that makes sense in many levels. Take the money and build factories - only Americans and American companies can be hired to build these factories. Use the factories to make bicycles and they will only be made of American produced components by Americans then instead of giving everyone a tax credit give them a bicycle it will reduce the need for oil and help peoples health lowering health care costs as well as creating jobs...after they have built everyone a bike they could focus on export production or start converting the factories to other production

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Serapis said:

It isn't affecting the world wide commodity markets..... I understand your answer in reference to America, but world wide? It's the fact that capitalism embraces the highest bidder. Speculation on commodity futures in the various world markets is where the inflationary pressure is coming from. In fact, with world markets linked as they are with technology of today, a single entity could attempt to corner the futures market on a specific commodity if they had enough to cover the call.

While the majority of inflation is indeed caused by a rise in available currency, history has shown that there are other inflationary pressures as well, such as a perceived or actual shortage of a commodity. Speculation that a certain commodity may be scarcer in the future also contributes to inflation. Your argument is only standing on one foot. Take a look at the other causes of actual inflation and forget the book definition for a second...

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