As USA is the only country that "prints out" its own currency, what limits it not to print $ "As it needs"!?

Answer 1

Very simple "inflation". You see if the government (Federal Reserve actually) printed out 1 billion dollars for every citizen, the price of a loaf of bread would jump to, oh, about 160,000 dollars. In short, you'd have to bring your money in a dump truck to buy a pizza.

That is why a hundred years ago (less actually) soda was 5 cents, but now it is like 2 bucks. The reason is because now we get much more money. If we were only paid 3 dollars an hour, things would be much "cheaper" but since we have less to spend, it would cost proportionally.

In addition, it affects trade due to the value of the dollar. If a country has a weak dollar you can buy a lot from that country because your money is worth more and you have more of it. For instance in South Korea 1000 of their dollars is equal to about 90 cents of our money. So if you bring 100 dollars there, you will get 100,000 or so Korean money and you'll be able to buy a lot more.

So the Federal Reserve wants to keep inflation in check, because if our dollar gets invaluable, then countries will basically rape us in the trade markets.

Answer 2

I do not know what you mean by "prints out". Every country prints its own currency.

Most countries no longer back their money with hard assets like gold or silver; as such, we now refer to the currency as "token" currency.

On the U.S. currency, it says it is a note. In effect a loan to the government from the Federal Reserve.

In the past, the U.S. backed its currency with gold then silver, but that ended in 1965. At that time, other countries would set the value of their currency against the dollar.

I believe it was in 1970 when we actually began floating our currency here. That is why the oil embargo, and the subsequent inflation, of the early '70s hit us so hard.

Every time government tries to change something, there usually is a small disaster till the changes ring out in the economy. This is what happened in 1929.

Government caused the great depression, and their use of Keynesian Economics made it deeper and longer.

Compare '29 to '87 and 2001. In ‘29, they were afraid of inflation, so the shortened the money supply, which caused everyone to hoard money. (Runs on banks anyone?)

I '87 and 2001 the loosened the money supply, which counteracted disinflation and the resulting growth continue on for several years.

Just released to the drive by press, though not reported much by the liberal Bush haters, but incomes to government has increased such that in around a year, we will be running a surplus. Surpluses in government are bad, but that is another subject.

Just think, in 2001 we lost 3,000 citizens, their incomes and incomes that were derived from their living. It is fairly estimated that we lost 1/5 of our economy in one year. That is $500,000,000.00 in a $2.5 trillion economy.

That is one hell of a hit, and yet within two years we were back to level and have been growing every since.

The housing boom was the result of the Fed lowering interest rates to all time lows, allowing the highest level of home ownership in the history of the U.S., much less the world.

When someone says that the U.S. sucks, I think they need to pull their head out of where they have it stuck. Emigrants, legal or otherwise, see America as a true place of opportunity, or they wouldn't be flocking here.

Answer 3

Well for one thing, the USA isn't the only country that prints its own currency.

But back to your question. If the US just printed money and handed it out as it pleased, it would cause economical inflation (stock market losing all it's value) There would be no competition and the US would fall behind on technological and scientific advancements because there would be no motivation to work!

We all work for money, and through our raw determination we get the money, AND we discover great and helpful things to share with the rest of the country, and later on, the world!

So understand, if the minters (money printers) printed all the $$$ that they felt like and give it out to all American citizens. Work would stop, the stock market would fall apart, people would lose motivation to work and learn! Also think, the youth of our country would not learn anymore! For what would be the point? If we had our own stockpile of money, why not drop out now? We'd have no need of any work, competition, and education.

Sure this may sound alright, BUT. As I mentioned earlier, no advancements in any field leaves the US open to criticism, and in the future, possible vulnerability to attack!

Hope this helps!

Answer 4

1) i really don't understantd "as usa is the only country that "prints out" its own currency - britan, australia and whole lot of other countries print out their own currency -

2) During the depression on of the government parties actually suggested this in Australia so that they will have more money to spend but this would not work due to the value of the stock market.

Answer 5

that's an relatively good and standard question. This relatively pertains to the reason of the super melancholy and various different moments in historic previous which includes Mr. Biddle's economic enterprise. a rustic can basically print paper funds so as that's its nicely worth is sponsored via the gold. each and each economic enterprise exceptionally has gold. yet to hold that lots gold could be cumbersome, as a result the creation of paper funds. the nicely worth of the paper funds could desire to such as the nicely worth of the gold contained with interior the economic enterprise. If no longer inflation could take place. case in point, we could say the economic enterprise gets excited and starts off to print a ton of money. people who earned the money are paid, purchase issues. yet then they settle on they opt to speculate via loans. So then the economic enterprise prints greater funds. And this undertaking keeps on habitual. yet then people settle directly to advance the charges for the reason that everybody has an excellent sort of money. people get scared, and run to the banks for his or her gold. notwithstanding, the banks have not got any gold to back up the money. So now the paper is valueless and people replace into unfavorable. besides, the Federal Reserve is seperate from the gov't, so it gov't would not have any administration over it. additionally, we've made this dire mistake formerly, and we don't desire to it back. Its no longer an relatively tremendously sight... All in all, If US became into to try this something undesirable could of direction take place :P

Answer 6

During World War II the government desperately needed money to fund the war effort and they decided to just print more without having the real funds (gold, silver, money) to cover the printing.

It severely devalued our dollar which meant that our money was not worth squat anywhere in the world.

That is why they can't just print more.

Answer 7

that's why i tell my wife not to worry about social security...they print money.... The USA prints money for half the world...less and less because of new technology...the more money a country has the less its worth..over printing also causes inflation

Answer 8

It used to say on paper money that it had that amount of gold in check for the money, it doesn't say that any more but to print out as needed would be to devalue it their can be a lot of paper money out there but its value is only as good as what it is worth.

Answer 9

I think I remember someone saying a long time ago that if the US just "printed" more money it would decrease the value of the dollar somehow.

Answer 10

Almost all countries print thier own money. The only exceptions I can think of are the countries of the European Union, which use euros.