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re: If the U.S. Federal Reserve can just “print” money, why does the Government borrow money?
Posted on 3/27/25 at 2:34 pm to Cycledude
Posted on 3/27/25 at 2:34 pm to Cycledude
quote:
I know flooding the economy with money causes inflation, However the government is spending this money regardless. Surely, some genius on this forum can explain to me why this wouldn’t work in a way my simple mind can understand.
I honestly dont know if thats possible if I am being honest.
0
Posted on 3/27/25 at 2:35 pm to PNW_TigerSaint
quote:
You a LGBTQ guy?
Bro, be nice man.
Posted on 3/27/25 at 2:40 pm to Cycledude
quote:
If the U.S. Federal Reserve can just “print” money, why does the Government borrow money?
The money they borrow is real money with value. The money they print to pay it back is essentially Monopoly money.
Posted on 3/27/25 at 2:51 pm to Cycledude
quote:Printing an extra $2-3 trillion a year is going to make your money worthless. The economy would crash because prices on everything would skyrocket with that kind of inflation and everyone’s life savings would be worth a fraction of what it used to be. Banks would collapse because inflation would be far outpacing the interest they make on existing loans.
I know flooding the economy with money causes inflation, However the government is spending this money regardless. Surely, some genius on this forum can explain to me why this wouldn’t work in a way my simple mind can understand.
Posted on 3/27/25 at 2:53 pm to Cycledude
quote:The only thing that backs our currency is the confidence in our governments ability to tax, and thus, repay the debt.
If the U.S. Federal Reserve can just “print” money, why does the Government borrow money?
Posted on 3/27/25 at 2:55 pm to Cycledude
Because printing money is inflationary, so there are limits to how much you can do without hyper inflation.
Posted on 3/27/25 at 3:02 pm to Cycledude
quote:
Since Oct 1, 2024 the U.S. govt has been borrowing almost 8 billion a day. I say stop borrowing money, and just write a check from a limitless checking account, so to speak.
Well thats never been tried before
Posted on 3/27/25 at 3:14 pm to Cycledude
Is Karl Marx your great-grandfather? He also had some economic ideas that have been tried several times but never worked.
Posted on 3/27/25 at 3:18 pm to Barneyrb
quote:
And that is exactly how we got to where the $1 is now worth about a dime
$0.03 of a dollar the day before the advent of the Fed.
Posted on 3/27/25 at 3:36 pm to Cycledude
Before you make a post such as this, you would be well advised to do a bit of homework or simple internet searches, because you are really not very smart if you believe this is how it works.
Posted on 3/27/25 at 3:38 pm to Cycledude
Better question: why do they take money that I’ve earned, when they can just print money?
Posted on 3/27/25 at 4:11 pm to ThatBaw
I tried to explain how it works to my wife and I figured out that I really don’t understand the process either. Who is charging the interest and who is collecting the interest from the loans the US gives itself? If you could explain how we are borrowing money from ourselves and running up the deficit so I can explain it to my wife, I really would appreciate it. TIA
Posted on 3/27/25 at 4:22 pm to Cycledude
quote:
I know flooding the economy with money causes inflation, However the government is spending this money regardless. Surely, some genius on this forum can explain to me why this wouldn’t work in a way my simple mind can understand
Why does the government borrow money?
Because the Federal Reserve is a private bank and is not part of government. Our government currently does not control the nation's money. A private bank does.
Now ask, why did income tax become a thing.
Posted on 3/27/25 at 9:19 pm to RandRules
TreasuryDirect I Bonds
US Gov sets the interest rate. Anyone can buy these at the offered interest rate which will add to the value of the bond until it matures. Once it matures, the lender (buyer of the bond) simply cashes it and is paid out in full with interest by US Gov (the borrower).
US Gov sets the interest rate. Anyone can buy these at the offered interest rate which will add to the value of the bond until it matures. Once it matures, the lender (buyer of the bond) simply cashes it and is paid out in full with interest by US Gov (the borrower).
Posted on 3/27/25 at 10:19 pm to Cycledude
Hopefully you are just young and dumb
Posted on 3/27/25 at 11:49 pm to Cycledude
We can also go to the sun, but only if we go at night.
Posted on 3/28/25 at 5:40 am to Cycledude
It’s called “money supply” and we literally took 2 weeks out of a semester to study it in one of my economics classes. The Fed’s primary purpose is to control the money supply to keep inflation at bay. You can’t just print your way to prosperity.
Posted on 3/28/25 at 7:32 am to Hitman67
quote:debt surpassed gdp in 2013
When these things happen and the debt is larger than our GDP
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