How I learned to stop worrying and love the national debt

I don't see how debt can continue to skyrocket. But, to be fair, there are other opinions, for one Roger Mitchell. Check out his website at http://rodgermitchell.com/ and his blog at http://rodgermmitchell.wordpress.com/ .

I don't quite understand his ideas, but he seems to think that the deficit is not a problem at all, and that the solution to our current financial crisis is more spending. And by the way, this will not cause hyperinflation.

There is some twisted logic to his reasoning, so I will pursue this a little further. He likes high interest rates, because they pump more money into the economy. I agree that higher interest rates are a good thing because they encourage more saving and on a micro level they discourage taking on more personal debt. Also, high interest rates will maintain the strength of the dollar and ward off hyperinflation.

He dislikes taxes because they take money out of the economy. I agree with this. At some point, and I think it is fairly low rate, maybe 25%, taxes become a disincentive to work harder. Why not abolish federal income taxes altogether?

Anyways to quote his conclusion:

1. The Federal government never can go bankrupt, because it always can create money (Federal debt) to pay all its bills, no matter how large.
2. Medicare and Social Security, being Federal agencies and part of the federal government, never can go bankrupt. If the overall organization (Federal government) is immune from bankruptcy, its integral parts (government agencies) also are immune.
3. Federal taxes are unnecessary, not only unnecessary, but economically harmful, because they use resources that could be applied more productively.
--http://www.rodgermitchell.com/SolutiontoMedicare.html

But what about hyperinflation? Not a problem, just raise interest rates:

Prewar Germany, Brazil, et al, generated too little demand for their money. Had these countries acted quickly to raise interest rates, they would have avoided hyperinflation.
For every level of risk, there is some level of reward that makes the risk worthwhile. Those who did not buy Brazilian money when the Brazilian government was paying 15%, would have bought it at a return of 50%. Or 150%. Or 5,000%. At some level, demand for Brazilian money would have been stimulated, and the hyperinflation would have ended.
Where would Brazil have found the money to pay those interest rates? By selling bonds, notes and bills, which would have been made possible by the high rates.

So stop worrying! We need more government spending, more more more! The government is the source of all wealth, and we need more wealth so we need to spend more.