Editor, Gazette-Journal:

I have been reading of late consistent reports of failing and closing retail outlets with many now bankrupt or facing bankruptcies. Couple this with failing pension plans, bankrupt city and state governments, a trend is becoming apparent; Illinois and Hartford are but recent examples. Unfortunately, there appears to be a public disassociation towards many of these events and what they portend to the overall economy.

The recent raising of the debt limit once again and on the continuing premise that a failure to do so would prompt default, speaks to the current fiscal dilemma. It is understood that raising the debt limit must by necessity be financed by a further sale of the bonds used to back that debt; this, in turn, raises the specter of inflation.

The mechanism of inflation is simple: The government-issued debt in the form of paper is a promise to pay or honor that debt; the Federal Reserve issues money on the security of these promises. When a government ...