why cant we print more money to pay the bills?

Question

ok so maybe we are still based on the gold system, which woudl cause inflation if a whole lot of money just got printed, but who says we are on the gold system, the goverment does, so why cant the government forget about the gold, print money and pay what they need.

but the government says we are based on the gold sytem, before gold it was seashells and rocks and stuff, look at other cultures, befor emoney they had trade, and there was no value to things, someone said i think my pound fo rice is worth one of your furs, it worked for them, and if the government says a pice of paper with green ink is worth the numbe ron it, than why cant it be

ms ellis d, if i knew about the money, i woudlnt ask about it woudl i, and i di pass grade school, in fact im an aircraft mechanic and iw ork on the planes you fly on, just becaus ei dont know about money doesnt mean your not retarded

since a few of you just want to damn my question, if i knew about it, i woudlnt ask, asking make syou smarter, thats why you ask, instead of callign people stupid for asking

if you dont liek my question, dont answer it, dontwast eyour time shuttign me down, you right i am not educated in politics and goverment as well as some, but some people cant fix planes like i do, this does not qualify you as stupid, it simply means your not educated and versed in that feild, and thats why i askl the question, becaus ei dont know! if i knew, i woudlnt ask woudl i

Answer 1

wouldnt that rock

Answer 2

Let's say you lived in a country whose entire currency was $100. In your bank account, you had $5. Your $5 could buy you, for the sake of simplicity, one house (i.e. a house was worth 5% of the nation's total worth). Now if your country decided to print, let's say, another $100, increasing the national money supply to $200, prices would rise as well. The 5% of national worth would now cost $10. You, however, would still only have $5 in your bank account. The money that you worked hard for and saved that was once equivalent to a house is now only equivalent to half of a house. Or, let's say you had originally loaned out your $5 instead of keeping it in a bank account, and a person was going to pay you $6 in a week. Well instead of having to pay you the equivalent of a house after the government prints another $100, they only have to pay you 60% of a house, and you, as a loaner are financially worse off. Bottom line: when a government prints more money, prices rise, and people who save or loan out money get hurt, economically speaking.

Answer 3

Because in order for money to materialize it needs to have a cycle, along with a source. Revenues are tied closely to the Gross National Product and Money Markets. Industry and global economies make up much of the dollar's value. Interest rates regulate the financial pulse of the stock market trading.
These ingredients create an economic chemistry which balance the prosperity of our country. To print money to alleviate the national debt would corrupt this system and create an economic meltdown. Our international financial muscle would be compromised. Imports and Export markets would crumble. The value of the Dollar would collapse. A market ripple effect would take shape. The 'Answers' site wouldn't be able to afford to stay in business..................

Answer 4

I suggest for the answer to your question, you should attend fifth grade American History. This should help clear things up for you. Like one thing in particular, the United States has not been on the Gold Standard since 1939, that's a long time. And you should know as an American that our money is not based on the Gold Standard. First pass grade school, then ask questions about stuff.

Answer 5

We Are Not On The Gold System! That's why we have so much inflation, however please understand that there are 2 forms of inflation dollar and price. Dollar inflation means that the value of the dollar is increased and price inflation refers to the value of the dollar decreasing. Unfortunately, this distinction is not mentioned by most news reports on inflation, since everything falls under one or the other.

Answer 6

Actually this IS what the government does and what causes inflation. We went off the gold system about 40 years ago I think and off of silver like 25 years ago. Adam Smith talks about converting a $5 silver certificate to silver. They gave him a baggie full of silver dust.

Answer 7

It doesn't work that way. The same question was brought up in my HS economics class and the teacher said that wouldn't work. I don't remember why but I think it had something to do with decreasing the value of the dollar so the price of things would go up (or something like that).

Answer 8

The problem is, that"s EXACTLY what the Federal Reserve does. You people need to do some homework. The Fed OWNS this country, for all we know Fort Knox is empty. The Federal Reserve Act of 1914 turned over economic control of this country ILLEGALLY to private bankers, and they actually do own each and every one of us. Bone up, kids, you are all missing the point.

Answer 9

We have a deficit of 3 trillion dollars!! Gold is not going to pay that off. That means we have no $$$$ in our bank ( to put in simpler terms ) so we borrow from other Countries who aren't in debt...i,e, China, Taiwan, Japan..etc... to pay for anything now and future wise that we spend. So for every amount of $$$$ we borrow from other Countries, they lend it to us with the knowledge that we owe them the $$$ we borrow plus interest!!!

So that means with the $$$ we borrow and the interest added we are more or less in debt about 8 or 9 trillion dollars. All that $$$ has to be paid off before we..the USA have a surplus!!!!

Answer 10

Because the value of the money would decrease against foreign currencies and we'd be in worse trouble. Research the history of the Mexican peso over the last 20 years and it will explain it.

Answer 11

We use gold to back up the value our money. Without the gold it would just be paper with green ink.