This is absolutely what I've been writing about since before the crash.
"Running the government's printing presses to pay its bills has not seriously been tried since the Civil War, when President Lincoln saved the North from a crippling war debt at usurious interest rates by printing greenbacks (US notes, interest free). Other countries, however, have tested and proven this model more recently. They include Germany, which pulled itself out of a massive financial collapse in the early 1930s by printing a form of currency called "MEFO bills," and Australia, New Zealand and Canada, all of which successfully funded public works in the first half of the 20th century simply by advancing the credit of the nation. China, Malaysia, Guernsey, Jersey, India, Argentina, and other countries" also tried it successfully during hard times to revive their economies.
Why not ailing America and European ones today. Central bank money creation (credit) for public projects and other productive investments stimulates economic growth, creates jobs, and turns depression into prosperity - inflation free by keeping credit and productive investment in balance. Whenever and wherever it's been tried, it worked when done right.
So, if the answer is right there in front of us, why are the Tea Partiers clamoring for austerity? Why are many, most, of the Gold Bugs doing the same? Well, the grassroots Tea Party members are duped by the truly misguiding Austrian School of economics.
The Austrian School, to put it simply, is laissez-faire, meaning let us, the capitalists, do anything we want to. Only have in place the barest agreement to use a court system of sorts to sort out those who violate their contracts.
The main problem with it all is what are called externalities, meaning supposed unintended negative consequences, such as the toxic-waste by-products of various industrial enterprises polluting everyone's air, water, soil, and bodies.
Since such consequences are not really completely unknown before an enterprise is allowed to run, the people's governments have created regulations, which are rules, such as, you can't pollute or you can't speculate the economy into a house of cards that you then collapse on purpose while demanding to be bailed out only to sit on the money while everyone else you've just nearly ruined is driven into complete subservience due to paying off your bottomless, unaudited (in capable of being audited actually) debts.