And there is a difference between deficit and debt.
We have carried roughly the same amount of debt for 30 years as a country.
The deficit is the difference between the budget and the income of the fed.
Our debt was not substantially lowered during the Clinton administration. The economy was given a huge shot by the tech boom which provided the fed with a never before seen rise in taxes and fees. When the tech boom started to collapse in the late 90's that money wasn't available any more.
Go back to school and learn some basic economics. It will help you to understand the system a little more.
2007-05-31 06:51:22
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answer #1
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answered by Talen 2
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Printing money without an increase in goods and services is what causes inflation.
Granted, the Feds diliberately create inflation, but that does not make it a good thing.
Increasing taxes is not the answer either. The answer is to stop waste, stop the government from sucking up billions of dollars to support illegal alliens, stop supporting people who are capable of working but find food stamps to alluring; stop paying medical bills for people who do stupid things (like smoker's getting cancer, fat people getting diabetes, etc.).
2007-05-31 06:43:01
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answer #2
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answered by Nothingusefullearnedinschool 7
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Because, the more paper money you have out there, the less that money is worth. OUr troubles began by taking the US off the gold standard, and linking our economy to the "credit" cartel, in my opinion. If all we needed to fix the economy was to print more money, then we would have done that by now. We can print all the money we want, but WHAT IS HOLDING THE WORTH? Since we are no longer linked to gold or silver, what commodity backs-up our dollars? That is a good question.
2007-05-31 06:41:53
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answer #3
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answered by irish_american_psycho 3
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paper money is a theoretical value of reasources. You can get away with making some money but will eventually get into trouble. Nowadays you don't even to print money you can just push some numbers in a database. But this is meaningless in the big picture. Our world is a runaway frieght train, tipping the scales would be disastrous. not to mention it's trillions of dollars.
2007-05-31 06:45:43
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answer #4
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answered by Anonymous
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We cannot make "money" without the gold in the Federal reserve. Cash and coins are just promissory notes.
2007-05-31 06:42:45
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answer #5
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answered by Anonymous
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if they do that then the value of current dollar falls
its like if you have a car for sale you get a good price
if 10000 cars just like it are as readily available as yours,price does down
2007-05-31 06:40:37
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answer #6
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answered by Anonymous
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Read his question he is of foreign descent and there is 7 million muslims in the US and they are using the internet to spew hate and anti-american descent.
They want us to have a civil war or at least divide and conquer read his other questions.
2007-05-31 06:41:28
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answer #7
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answered by cloud 7
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OH my goodness.I can not even think of a thing to say to this.
2007-05-31 06:41:11
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answer #8
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answered by ♥ Mel 7
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