Your position is based on one big presumption that government is wise and accordingly it may convert stone to gold by simple intention.The presumption I see is that if you need more money, you have to borrow or sell something. It's not true: if you're a government, you can simply print more.
Of course you are causing inflation, but I'm saying that in 2009 inflation ain't so bad - especially if enough countries agree to print their way through the crisis.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1
