If U.S makes their own money, why cant U.S just make as much money as they can and pay debts and do other stuff with it. I know you're answers might be inflation but still if all prices do go up, then U.S could just make enough money for people to get paid more to cover those prices.
2007-01-11 15:07:55 · 5 answers · asked by Sharoof 2 in Social Science ➔ Economics
except the in-dependency of federal reserve, printing money to pay the debts and printing more to cover the prices will surely bring on inflation rates about %1000-2000 just like brazil and israel experienced in 90's. in these cases money has no function anymore and it is something useless. you have to build another system to buy things like exchanging of goods just like the ancient economic system.
2007-01-12 11:25:04 · answer #1 · answered by sedatp 1 · 0⤊ 0⤋
It's not how much money is in circulation but what value it has. For a prime example, check out Brazil (or just about any third-world country). If you keep printin money you might as well just use Monopoly money - it will be worth about the same.
2007-01-11 23:12:23 · answer #2 · answered by Anonymous · 1⤊ 0⤋
That couldn't work because the Federal Reserve who make US money loan it with interest to the government.
Make a search about how the Federal Reserve works and what it is. You'll understand more.
2007-01-12 03:06:00 · answer #3 · answered by Juhanah 2 · 0⤊ 0⤋
The tactic now is to steal as many oil fields as possible. But to pay off national debt is absurd. As you ought to realized that greed must come first or before considering our debts. This is what being capitalist is all about.
2007-01-11 23:17:00 · answer #4 · answered by FILO 6 · 0⤊ 0⤋
I think it is dumb to use it in the war .. but in economics they teach that a country makes money through war.
2007-01-11 23:15:15 · answer #5 · answered by talent4god 2 · 0⤊ 0⤋