If the USA is so in debt. why don't they just print more money?

Question

If we are so in debt and they say there will not be funds for social security benifits in the future or to help the elderly with medical. They should just make more money.

Answer 1

We have been doing this since we de-coupled the dollar from gold in 1971. Actually, to be accurate, the private bank called the Federal Reserve has been doing this. When they set interest rates low, more dollars are borrowed, meaning more dollars are needed to be put in the system, so they order it up from the Treasury and print away.

If you compare the price of precious metals and real estate, two items that have fixed "value" unless something big and artificial happens to them, then you will notice that they have increased in value almost 1.5x since Bush took office. We have had inflation of nearly 50% in the last 4-5 years. The Fed stopped making public knowledge the M3 indicator two months ago, which is the number of dollars in circulation in the world. This was another trick to curb inflation...if nobody knows how many dollars there are, they can't adjust the rate of exchange based on any hard number anymore.

Answer 2

The reason that we are in so much debt is that

the U. S. Mint prints money 24 hours a day and

congress spends it all. Some on worthwhile

projects and some on "pet" projects which are

considered "pork" i. e. a waste of our tax

dollars. Consider the fact that they are

changing the 2006 nickel for just one year. It

takes millions of dollars to engrave, print, and

distribute these coins. Next year, the nickel will

be changed again! What a waste of time and

expense. The presses never stop printing

money and the more money Congress gets, the

more it spends!

Answer 3

Because since the money of the USA is not backed by anything but the governments word, it isn't worth much in itself- its just paper with something printed on it. If you print more money the money that is already printed will immediately lose value and the people we have borrowed from won't accept the money as a viable payment. This is called inflation.

Answer 4

Without anything more to backup that money, that is called inflation because the new money takes value away from your current money because their worthless without backing which the government has a limited amount of. Your total fortune has the same value even though it consists of more money. The debt will also increase as a multiple of the inflation you caused.

Answer 5

because if they print more money, the money supply on the money market graph will shift. a shift will lower interest rates. a lower interest rate will promote investments. investments will lead to a higher aggregate demand. a higher AD will lead to an increase in prices. an increase in prices will lead the money demand to increase, which will lower interest rates. then there will be a negative effect.

Answer 6

Because it makes the existing cash worth less.....

It like issuing shares. The more you issue the less they are worth.

Answer 7

you know..that's a really great idea! let's call them and tell them to do it. and give us the first batch of 100 dollar bills. we came up with the idea right! well you did, but i'm the helper.

Answer 8

We need a Politics FAQ for these... I see this about every week or so... it's basic economics...

Answer 9

Probably can't afford the paper.

Answer 10

Inflation, inflation, inflation.