With more dollars on the market chasing the same amount of goods (e.g. oil) the price of everything denominated in dollars would shoot through the roof.
Yeah, but that's what I've never quite understood: how would it put more dollars on the market than there was always going to be anyway? I mean, the idea was always to pay back these bond holders. Weren't the dollars that will be needed to pay back bond holders going to have to be created at some point regardless?
The total Federal debt is $39 trillion, but there's only something like $20 trillion actually in existence, if I'm not mistaken. Even if we collected every single existing dollar out there through taxes, we'd still have a shortfall of almost $20 trillion.

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