buy goods and infrastructure from other countries
2007-09-23 19:16:10 · 7 answers · asked by Gwapings 1 in Business & Finance ➔ Personal Finance
What would make all of the extra money any different than money printed up by a counterfeiter? If the government could just pump out as much money as it needed then why bother stopping counterfeiters? They would actually be saving the government money. That would just be less money that needed to be printed. In fact, we could just do away with the mint and let everyone just print their money on the printers.
Hopefully, you would be able to see that if this happened, he printed money would be worthless. There would be nothing attached to it that gives it value. The government needs to carefully control how much money it puts into circulation. There needs to be enough to allow the economy to function but you can't have too much or the money becomes worthless.
Another way to look at it is imagining a corporation handing out stock certificates. If there are only two stock certificates, then owning one is a big deal. If there are 50 then owning one is still pretty important. If there are 50,000,000,000 then owning one does not mean much of anything. The greater number of stock certificates then the less value of an individual certificate. The same principle works with printed money.
2007-09-24 10:26:30 · answer #1 · answered by A.Mercer 7 · 0⤊ 0⤋
If the government keeps on printing money, it will lose value. In theory, all US currency is backed by a certian percentage of gold, this is where it gets its value from. If we keep printing money that is not backed, the money loses value. That loaf of bread that cost $1 will cost two. The money becomes over inflated, and business quickly figures that out and jacks the prices up on everything.
2007-09-24 02:26:54 · answer #2 · answered by TC 3 · 0⤊ 0⤋
There would be no value to the dollar. In order to print money there has to be something such as gold or silver to back the money, otherwise it is just a worthless piece of paper.
2007-09-24 02:26:21 · answer #3 · answered by j.mustapha 1 · 0⤊ 0⤋
The USD is only valid INSIDE the United States of America.
You cannot buy a Sony Playstation 3 or a Nintendo Wii with USD.
You cannot buy a Mercedes Benz or a Porsche with USD.
If a Japanese lend you some money then you need to pay him in JPY.
If a Canadian lend you some money then you need to pay him in CAD.
You cannot pay your debt in USD.
You may as well use a napkin.
The USD is just a worthless piece of cotton.
It does not matter if you print a Gazillion of Dollars at the end of the day you still need REAL MONEY to buy REAL THINGS.
If you need a more detailed answer then you can email me.
2007-09-24 04:07:26 · answer #4 · answered by Anonymous · 1⤊ 5⤋
the debt is with other countries...they dont care about our money its useless to them its just green paper(if we would just print more)......if we did that our money would just be worth less......they want something worth what they loaned....gold, valuable currency exc.
2007-09-24 02:26:18 · answer #5 · answered by humm 3 · 0⤊ 0⤋
It will create out of control inflation.
2007-09-24 02:49:45 · answer #6 · answered by ? 5 · 2⤊ 0⤋
Yeah, haven't you ever heard of Fort Knox??
2007-09-24 02:44:06 · answer #7 · answered by oh laura 3 · 0⤊ 1⤋