Government checks can't bounce. http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf Unless t

Government checks can't bounce. http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf Unless they give up sovereignty over their own currency of course. A mistake made by European countries - several of which have paid and are continuing to pay the price. I absolutely agree that too much public debt is a bad thing, but not for the normally given reasons. It can lead to inflation, devaluation of the currency in relation to either goods or investment asset prices - indeed we see the latter at the moment in stock and property markets around the world, although that is driven by money creation through private lending. This is more worrying, as private checks can and do bounce, debts default, and we get another financial crisis. Govt debt should be used for capital investment - roads, communications, health, education and security facilities - and if so used can be a true investment with an expectation of future returns. Debt that blows out on operational expenditure, transfer payments, public sector bureaucracy bloat, is not sustainable.