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If the government can simply “print money” why does it need to borrow?
Posted on 8/29/26 at 12:59 pm
Posted on 8/29/26 at 12:59 pm
Foreign creditors like Japan, China, and the UK account for 9 trillion of the 40 trillion of national debt. Call me names if you will, but why borrow at all? I know inflation is a concern but if you spend the same amount whether it’s borrowed or printed why would it matter?
11
Posted on 8/29/26 at 1:22 pm to Cycledude
Because then those foreign nations would dump their bonds and crash the dollar. (I think)
The US power in the world is partly because our currency isnt utterly debased. No matter how debased you think the dollar has been (and it has been) remember that pretty much everyone else in the world has debased their currency far more.
Corrupt and ineffective governments always end up debasing their own currency.
The US power in the world is partly because our currency isnt utterly debased. No matter how debased you think the dollar has been (and it has been) remember that pretty much everyone else in the world has debased their currency far more.
Corrupt and ineffective governments always end up debasing their own currency.
This post was edited on 8/29/26 at 1:24 pm
Posted on 8/29/26 at 2:31 pm to Cycledude
Printing new money increases money supply.
Borrowing existing money does not.
Borrowing existing money does not.
Posted on 8/29/26 at 3:28 pm to Cycledude
I believe borrowing from foreign markets in our currency effectively exports the inflation. If we just print all the inflation stays at home.
Posted on 8/29/26 at 3:31 pm to Cycledude
Printing money will result in runaway inflation if left unchecked
Posted on 8/29/26 at 4:16 pm to Cycledude
An example of what happens by simply printing money:
- The economy produces 100 units of goods.
- People collectively have $1,000 to spend.
- If the government adds another $1,000 in circulation by spending it but production remains 100 units, more dollars are competing for the same goods.
- The result is generally higher prices (because of their willingness and ability to pay more) not twice as many goods.
The reality is that printing money means the government adds it to the economy by either spending it on things consumers might not want or they can find out what consumers want by giving them stimulus payments or tax refunds. Some production will increase in response to demand, but probably not enough.
- The economy produces 100 units of goods.
- People collectively have $1,000 to spend.
- If the government adds another $1,000 in circulation by spending it but production remains 100 units, more dollars are competing for the same goods.
- The result is generally higher prices (because of their willingness and ability to pay more) not twice as many goods.
The reality is that printing money means the government adds it to the economy by either spending it on things consumers might not want or they can find out what consumers want by giving them stimulus payments or tax refunds. Some production will increase in response to demand, but probably not enough.
Posted on 8/29/26 at 4:48 pm to Cycledude
Having our debt, treasuries, serve as the world reserve asset for 50 years was the mechanism whereby we were able to export inflation and consume cheap stuff. If they just printed the money 90% of Americans wouldn't be able to afford to eat and we'd have had a revolution a long time ago.
The deal was we'd secure the world and everyone else would chip in by paying a higher cost of living. That system is currently breaking down because China, the last big buyer of our debt decided after the GFC that they'd rather buy gold and fund investment abroad with their belt and road initiative.
Unless aliens are real and they want to buy our debt the system is now transitioning to whatever comes next. It is getting messy and will get messier.
The deal was we'd secure the world and everyone else would chip in by paying a higher cost of living. That system is currently breaking down because China, the last big buyer of our debt decided after the GFC that they'd rather buy gold and fund investment abroad with their belt and road initiative.
Unless aliens are real and they want to buy our debt the system is now transitioning to whatever comes next. It is getting messy and will get messier.
Posted on 8/29/26 at 5:36 pm to Cycledude
The more they print, the closer we get to the end of the fiat dollar. Printing causes inflation. Inflation devalues the dollar. It is now worth less than $.03.
Posted on 8/29/26 at 7:16 pm to tiggerthetooth
quote:
The US power in the world is partly because our currency isnt utterly debased. No matter how debased you think the dollar has been (and it has been) remember that pretty much everyone else in the world has debased their currency far more.
Corrupt and ineffective governments always end up debasing their own currency.
Correct, …. the US Dollar is merely the least dirty shirt in the laundry …. marginally.
Posted on 8/29/26 at 8:20 pm to cadillacattack
What if the government started spending money on rebuilding our infrastructure sort of like they did with the Civilian Conservation Corps in the 1930’s using printed money.
Posted on 8/29/26 at 8:51 pm to cadillacattack
quote:
Correct, …. the US Dollar is merely the least dirty shirt in the laundry …. marginally.
This makes sense, but is there also incentive to use the dollar because Americans, in general, are relatively big spenders, particularly in buying goods made in other countries?
Posted on 8/29/26 at 9:14 pm to Cycledude
The govt doesn’t print money.
The federal reserve does.
The federal reserve controls monetary policy.
The federal reserve has ZERO to do with the govt.
The dollar isn’t real.
The federal reserve does.
The federal reserve controls monetary policy.
The federal reserve has ZERO to do with the govt.
The dollar isn’t real.
Posted on 8/29/26 at 10:44 pm to Cycledude
The federal reserve is our largest creditor
Why not just stiff them?
Why not just stiff them?
Posted on 8/30/26 at 9:09 am to BamaCoaster
quote:
The dollar isn’t real.
Posted on 8/30/26 at 2:17 pm to Cycledude
quote:
If the government can simply “print money” why does it need to borrow?
Inflation is function of too much money chasing too few goods. The US Dollar (USD) is a product, just like anything else. If you produce too little of it, the value of the remaining ones in the economy increases. If you produce too much of it, that lowers the value of the ones in the economy.
Think of it like this… A mint (or near-mint) copy of Action Comics #1 can go for millions of dollars in an auction. It’s an importance piece of American heritage and literature and it’s wildly rare to find. However, if everyone had ten copies you wouldn’t be able to give your copies away.
Posted on 8/30/26 at 7:41 pm to Bard
So if you have too many dollars chasing too few goods, then those goods will be in high demand. Then an enterprising business will simply increase production creating more product and therefore the price will go back down to equilibrium. A win win.
Posted on 8/31/26 at 12:42 am to tiggerthetooth
quote:
Corrupt and ineffective governments always end up debasing their own currency.
We should go back to a Gold Standard with modern tweaks
Posted on 8/31/26 at 7:54 am to Cycledude
How else are a certain faction in the Middle East going to get their billions a year and control our politicians.
Read a book about what happened Christmas Eve 1913, that’s the year we were sold down the river.
Read a book about what happened Christmas Eve 1913, that’s the year we were sold down the river.
Posted on 8/31/26 at 8:55 am to backbone
quote:
1913
Federal Reserve Act and the establishment of a permanent Income Tax both in 1913.
4 years later and we joined the first global war
Posted on 8/31/26 at 9:08 am to Dozen_Charred1026
Exactly, looks like we have a well read person on tiger droppings. Shocking and thanks for not being a dumbass like most of the knuckle daggers on here.
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