Countries and their currencies....?

Question

Take the USA for example. They control their own currency and are heavily in debt. Couldn't they simply print more $$ and use that instead of continuous borrowing?

Answer 1

The US do print dollars in an uncontrolled way. They left the gold standard in the early 70's and based their currency on oil - the Petrodollar. Basically the Federal Reserve prints money for fun because the dollar is always in demand because you can't buy oil without it (except from Norway, Russia and Iran who accept Euros). Thus these dollars are used to buy foreign goods (getting something for nothing because the Fed Reserve prints the dollars for next to nothing) and the foreign countries get dollar to be used as a reserve currency and to buy oil. The US economy is artifically propped up and the dollar value is also artifical. Now that some countries sell oil in Euros you can see how much the dollar has fallen against the Euro.

Answer 2

Yes, it is called inflation. Inflation devalues currency. So the solution is to print more money and devalue the currency further. Soon it will be like Germany after WWII. People had barrels full of paper money and it bought very little.

Answer 3

The more they print the less it will be worth. It has been tried many times, for instance in South America, where at some time 1,000,000 peruvian intis equalled about a dollar

Answer 4

k, if you have 100 $ you go to buy some thing and there is nothing in the market, you $'s has no value. in the same sense government must have the something with the same value like gold etc. so that if peoples got the $'s they print and go to government to produce them the valuables of same value government can produce that valuable otherwise inflation will rise up.

http://www.bayrozgar.com
http://www.apnigari.com

Answer 5

If they printed more, it would devalue our currency.