If Countries can mint there own money why cant they print it instead of borrowing it?

Answer 1

Because in 1913 we gave America away to the bankers.

Ron Paul wants to kill the Federal Reserve all of the other
people in Washington work for the Federal Reserve.

Answer 2

Because they have to back the money that they print.

When they print more money then they have the backing for that creates hyper inflation. Before WW2 a wheelbarrow load of German Marks was needed to buy a loaf of bread. The German Mark wasn't worth the paper it was printed on.

This is what makes the national repository in Fort Knox so important, and for a long time you could go into any bank and get a dollars worth of gold right at the counter. When a country backs its money like this it is called a hard currency.

The Russian Ruble, under Communism, was never backed by anything stronger than the word of the government. When the government fell the Ruble became worthless. This is because it was a soft currency.

Most currencies in the world today are hard currencies. Somewhere in that nation is a bank with gold or other valuables worth every penny that it the nation has issued in their currency. The accepted standard for hard currencies is gold so that is what the banks are storing. Without that gold their currency would have no value in the international market. No one nation stores all of its gold in the same spot or even in the same country. A lot of nations store some of their gold in New York City for use on the International Market. If you saw the movie Die Hard 3 that was what the bad guys were stealing.

Answer 3

If a country prints more money then they devalue there existing money supplies and create inflation. Meaning that if a country opted to print more money then that additional money will circulate into the economy. This money ends up in the pockets of the people of that nation. Sounds good until you consider all these people need to eat and say they want to buy bread which costs $3.00. Well since everyone can now afford $3.00 bread, the bread saled very faster than it can be made. So now people are willing to pay $4.00 for the same bread. So here we have illustrated how by distributing money without considering actual value caused prices to rise. Now imagine this happening at the sametime with all sorts of products in the market place.

Answer 4

They can, and sometimes do. But the money must be backed by something, lest it become worthless; these days, the backing is usually just the taxing power of the state. A currency without adequate backing can be like the German mark of 1922; it took four billion marks to buy a newspaper, and since the largest note available was "only" a hundred million marks, it was not a trivial transaction. The story is told of the man who took a wheelbarrow full of money down to the grocery to buy a loaf of bread. He went into the store to arrange the deal, leaving the wheelbarrow outside. When he returned, he discovered that someone had stolen the wheelbarrow -- and dumped the money. The currency was eventually solidified, with one new mark being worth a trillion of the old ones.

Answer 5

It's ok. I used to wonder why if a plane was crashing why I couldn't crawl onto the wing and jump just before it hit the ground.Of course I was 5. Think about it for a second.

Answer 6

Inflation which eventually leads to hyper-inflation. If you print enough paper money a Bic Mac will eventually cost $10,000.

Answer 7

Inflation!

Answer 8

because they have to have something to back up the paper like gold, silver etc