Paying Interest on the Bailout

Ron posted on Mon, Sep 22 2008 7:28 AM

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Obviously the root of the current financial problem is the lack of a sound monetary system. But if this bailout is necessary, short of going to a commodity money system, would it not be more cost efficient for the government to just create the 700 billion and inject it into the system rather than creating the money for the Fed and then borrowing it and paying interest on the 700 billion that was created out of thin air anyway? Wouldn't the savings on not paying interest on a 700 billion dollar loan be considerable?