The 2nd Gold bug is arguing Keynesian economics.. where the Government spends a dollar.. and it turns over.. say 7 times..

Farm payments $$$ to Farmer.. taxed
Buys a pickup.. salesmen taxed
Ford builds pickup.. Ford taxed
Hires workers. Taxed.
Workers buy a house.. builder taxed
Buys lumber.. lumberjack et all.. taxed
Workers buy a big screen tv.. 
Iimported from China.. dock workers taxed

So there ya go.. a dollar injected into the economy.

Passes 7 times.. assuming 25% tax (or whatever) $7 x 25% = $1.75 to the treasury. 

China sells the TV and Buys US Treasuries.

You may not agree with all of this.. but essentially that's what they are claiming.

AND. Some of this must be correct as we've gone from $2.5 trillion in 1978 when Friedman said "trade is good" to $27 trillion or more.. today.

If not true.. how do you explain it?