USA DEBT URGENT !!!!!!!!!!!!!!!!!!!!!!!!?

Question

Why can't America just print of its national debt? I understand inflation and all that crap and devalue of the dollar, but consider if the notes are printed out and NOT introduced into the economy. Hence your salary stays the same hence no inflation. Basically the notes are printed out and sent straight away. Now you may argue that since more has been printed out, whether or not introduced into the economy, now each dollar is worth less, and there is more, BUT what happens if its done secretively? Hence no other foreign countries would realize that now there is no extra bills, hence no higher costs???????????????????????

SumDude · Accepted Answer

producing pictures of dead presidents on green paper is not what is meant by "printing money."

P M is using a credit card you never intend to pay off, or writing rubber checks - which is what the U S does when it spends more than it collects in taxes.

You cannot clear up a negative balance in your checking account by writing another bad check on the same account to cover the deficit.

spare_widget · Answer

If paper is printed, but NOT introduced to the economy - you have paper. Paper has no value.

Your typical bank note is a fiduciary (or mutually trusted) bond to "pay the bearer on demand" something of value.

It used to be that the promise was backed up by gold.  This changed to "The Word" of the US Government. The credibility of that word is no longer as widely accepted as it once was.

America has a debt to other countries (the largest debt is owed to China).  Essentially China could call in its debt and own America. America could refuse to meet its obligation to pay - but would suffer loss of credibility. Then nobody on the planet would lend to America.

VanessaFas · Answer

Have you not heard of what happened when other countries did this? I guess you don't understand 'inflation and all that cr@p'.

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USA DEBT URGENT !!!!!!!!!!!!!!!!!!!!!!!!?

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