Ive always asked myself this question... They have the machines to make money so why dont they make what they owe and pay it off? wouldnt that be easier?
2006-06-21 09:37:07 · 23 answers · asked by ABC 3 in Politics & Government ➔ Government
Printing more money causes inflation. The more money there is in the economy for the same number of goods, the greater the cost of each good.
Interest rates are a combination of the inflation rate and the "real" interest rate (that discounted for inflation). If inflation increases, the interest rate goes up. The government pays its debt with interest. As such, it just got a lot more costly to pay off the debt.
So ... if a lot of money is printed, we get all of the negatives associated with inflation and the devaluation of the currency, plus it will cost a lot more to pay off the debt.
2006-06-21 09:40:38 · answer #1 · answered by dutch_llb 3 · 4⤊ 0⤋
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2016-07-20 23:42:20 · answer #2 · answered by Teddy 3 · 0⤊ 0⤋
Wow - Spoken like a real politician! If we have debt - just print more money! And while we at it let's just print a little bit more so we and have total health care coverage - and a little more to pay for free Stanford educations for everyone in the world - and a little more so we can feed the entire world! Then we just print some more to pay off that debt...Hey - it is not our money so it really is not debt is it?
I wish I could just print more $ to pay my house payment or print more money to buy anything I want. Why are these guys in office and better yet what are these kids being taught in school to ask such questions? Oh I see it now - "wouldn't that be easier" Easier than what? Being a responsible individual and living within your income? Life is not easy - life is hard and making the right decision is hard.
2006-06-21 09:51:50 · answer #3 · answered by FIS4HER 2 · 0⤊ 0⤋
The Making of Money depends on a lot of factors for eg the gold reserves in certain countries.
if they print too much money, it will loose value and prices of things will go up.
for example if everyone gets extra cashflow, you will have people who use the bus, lining up to buy cars making car prices sky rocket.
also the government takes debts usually from within and abroad, hence devaluing money by printing large quantities actually makes the debt large, because it was taken when money had more value.
2006-06-21 09:44:03 · answer #4 · answered by gods_chief_pilot 3 · 0⤊ 0⤋
Other countries have done this and it causes extreme devaluation to their currency. If your country's currency is wildly fluctuating, no one will be willing to do business with your country or lend you any more money without extremely high borrowing rates. It would be a complete and total total mess. Better to try to get rid of our deficit and pay off the debts the old fashioned way...
2006-06-21 09:42:18 · answer #5 · answered by monger187 4 · 0⤊ 0⤋
Cash is a set percentage of debt. If the government would print more cash, then debt wouldn't go down, but the buying power would go down. Just like if you max out your credit card, and can never pay it off.
2006-06-21 14:33:59 · answer #6 · answered by kamkurtz 3 · 0⤊ 0⤋
Swiss banks is the depository of the corrupt Indians that took money from the government. These Indians must be prosecuted for corruption so that the money they took will be returned to the coffers of government.
2016-05-20 09:32:43 · answer #7 · answered by Anonymous · 0⤊ 0⤋
A dollar bill by itself it totally worthless. Printing more would be like writing checks with no money in the bank.
If there is no wealth to back up the additional monies made, then no one will want it.
2006-06-21 11:21:38 · answer #8 · answered by B 4 · 0⤊ 0⤋
It sounds like a good idea, but it is too good to be true..it would cause massive inflation, you can't just put extra money into circulation, it will have devastating effects on the economy.
2006-06-21 09:40:57 · answer #9 · answered by loubean 5 · 0⤊ 0⤋
its simple lighten up on the over paid politicans about 400 hundred more than we need and the secretary:s secretary and her secretary, i think about all of them have at least adozen secretaries. most of the wasted money is in the gov, offices.And Im sorry but i resent our money used on the parties they throw for each other. Its a crime it really is. People are starving and they are using the money for their stupid entertainment.
2006-06-21 09:47:41 · answer #10 · answered by sportie_kindofguy 2 · 0⤊ 0⤋