President Barack Obama claimed a few days ago that the days of "people maxing out on their credit cards" are over. Last Wednesday, the Federal Reserve made it clear that the warning does not pertain to the biggest "credit card" in America - the government's deficit spending.
Officials at the Fed announced that they will "purchase" $300 billion worth of Treasury bonds. That will have several effects on the economy. It also will increase inflation, making money buy fewer goods and services. That will happen because, in order to buy the $300 billion in Treasury bonds, the Fed literally will have to print the money to do so.
That is happening because - while Americans are being told to control our own spending - government is both running up its tab and remaining in charge of deciding what "maxed out" means.
"Maxed out" on federal spending? Just print more money. It is a way of life in Washington.