The word "redeem" means "buy back." It is used in Christian theology to describe what Jesus did for mankind in general (common grace) and individuals (special grace). It was used during the era of the gold standard to describe the right of a holder of paper money to redeem this money for gold coins at a fixed price.
The debt of the United States government is now beyond redemption.
The only way for this debt to be redeemed officially is through mass inflation. If this is the way of redemption, then the economy is beyond redemption.
There will be a great default. The question is when, not if.
This is perhaps the biggest dilemma facing the Obama administration. Our current administration has nearly doubled the debt in eight years. Obama will not be able to fulfill his promises without exacerbating the problem of debt. $10.5+ trillion is a lot of money, even if it is fiat money. We cannot spend our way out of debt by printing more fiat money. There will be a day of reckoning says Gary North.
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