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how can the goverment can pront their own money, but the economy is all ways in the deficit

2006-06-29 09:11:27 · 6 answers · asked by K-Def 2 in Politics & Government Other - Politics & Government

6 answers

Printing more money will not give more money, it will just make the value of the dollar go down and cause massive inflation.

2006-06-29 09:15:17 · answer #1 · answered by Ludwig Wittgenstein 5 · 0 1

the government prints money with the idea of a good faith backing. meaning our money will always be good. However, the government prints bonds that we give money for, those bonds in return mature and grow. this is where (in my opinion) the majority of our deficit is. lets say if china owned all of our bonds, and then came to the federal government to turn those bonds in, our government would not be able to pay off that debt. This would cause loss of faith in our money. This would also in turn ruin our economy and put us in a depression like you have never seen. If the government prints more money, the more you have the less it's worth. but the less you have the more it's worth. thats the law of economics.

2006-06-29 16:23:19 · answer #2 · answered by lefty201 2 · 0 0

Simply money isn't worth anything really. Money is a representation of other assests likes gold. Broken down it goes something like this:
If a bag of flour was worth 1 dollar. but there was 50 dollars in circulation one dollar is powerful.

Now that same bag is worth 1 dollar. but now there are 50 million dollars in circulation. How much is that dollar really worth?

Printing money doesn't end deficit - it can make it worse.

2006-06-29 16:19:21 · answer #3 · answered by Jacob B 2 · 0 0

you need gold or something else in reserve in order for the printed money to be good

2006-06-29 16:19:39 · answer #4 · answered by Ron K 3 · 0 0

I wish I could print money.

2006-06-29 16:19:14 · answer #5 · answered by kathy059 6 · 0 0

Politicians can't keep their hands off our money.

2006-06-29 16:16:35 · answer #6 · answered by edwardd91 1 · 0 0

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