War spending was financed in part by going to gold reserves and debt through the issuance of public debt, supplemented by the use of foreign loans, especially of US origin. The use of paper money was resorted to, which provoked a strong inflation, aggravated in the postwar period by the imbalance between demand and production.
One of the rights of congress is the right to impeach the president if they think he is to tyrannical. Checks and balances itself though is an example of separation of powers
