why is the america so in debt even tho we money is being printed everyday 24/7?
157167
Wow.  Um, it's not the amount of physical money we have, it's the *worth* of the physical money.  The gov't can't just print up an extra mil to cover the cost of stuff, that would cause the worth of the dollar to go down compared to other countries money.
1039218
obviously with the advancing technology systems used to activate any and almost ALL transactions today, paper money will be non-existent very soon!  i mean, how many people do you know that actually write out and use a paper check from their checkbook to make a purchase nowadays?    besides, communism is a necessary step to the demise of our humanity and society!
702112
A good question (but perhaps better off in the economics area of the site). Every pound or euro note you hold has been printed and spent by the state (before you receive it from your bank or employer or client), and on the day it was printed, the total number of pound notes in the country changed slightly.\n\n  This is the issue we are discussing here: how much money can a country print before it causes disaster?\n\n    The answer is that generally a country may print or create a small amount of cash on top of the notes it takes out of circulation, but while deciding how much to print, it must take a very careful look at recent inflation and exchange rate statistics.\n\n   If a country prints too much money, both the inflation and the exchange rates will go haywire / will be adversely affected. This is because, as money becomes more abundant but the things you buy with money do not, the ratio of people wanting to buy stuff and people selling stuff changes. \n\n  Simply put, if a country doubles the amount of money in circulation, then market forces will automatically take down the value of the exchange rate at least by half, prices of all goods and services will go up (will double), and imports become harder to afford as it now takes at least twice as much money to but the same imported goods.\n\n   Why is this not the case for the USA (and the Eurozone)? It is sometimes and to an extent (for the above reasons), but:\n when much of the extra money that is added into circulation does not get spent and then spent again by the person who received it, and again ..., instead the money is stockpiled somewhere (by a person, a company or a government), then the above affect does not take place until the stockpiled money is spent again. \n\nAnd if the total amount of money in the world being stockpiled (most large stockpiles are in dollars and euros as there are used for international trade and to keep other currencies stable) goes up, so (to conclude in the correct jargon) non-inflationary increases in money supply are possible.
1036667
Because money printed has to be backed by something else of value, like gold. Otherwise the money is worthless. It's the same reason that the U.S. mint doesn't print enough money to simply give everyone one billion dollars. They wouldn't be backed by anything and a jug of milk would cost a billion dollars.
345037
i assume you mean the U.S. deficit...just keep printing more money and it will be ok.....lol
67117
The amount of money is constantly fluctuating.\n\nEach country regulates its own currency.  If you print too much, the value of your currency will decrease.  The value of the money is based on the country's productivity.  The USA has the biggest GNP at $11.75 trillion.  A country's currency will go up or down in value based on the actions in that country.  If it prints more money, its value will drop in comparison to other countries that are not printing out more money.
159477
Just think, the money we use is "fiduciary" money. The key word here is fiduciary, since the value of the money we hold is based on the trust people have that the central bank will keep faith (fides) and pay as promised. In short, money has value because we believe it does.\n\nSo technically, if you could reproduce the manufacturing process and produce a dollar bill that is 100% identical to that of the government, the only real difference is that your bill is illegal, while the government's is legal. That's because the government is the only entity that is "allowed" to print paper money. Let's face it, if everyone could legally print money, it would indeed lose all its value as a means of exchange.\n\nThere really is no other difference.
296421
I have very bad news for you:\n\nIn 1971 the President of the United States of America Richard Nixon decided to suspend the convertability convertibility from dollars to gold.\n\nIn 1968 an ounce of Gold was worth exactly $35\n\nIn 1971 the United States of America had a reserve deficit of $56 Billion dollars; as well, it had depleted most of its non-gold reserves and had only 22% gold coverage of foreign reserves. In short, the dollar was tremendously overvalued with respect to gold.\n\nIn 1971 more and more dollars were being printed in Washington, then being pumped overseas, to pay for the government's military expenditures and private investments. In the first six months of 1971, assets for $22 billion fled the United States\n\nIn 1971, the United States government abandoned the gold standard, so that the US dollar was no longer a fixed currency, and most of the world's currencies followed suit.\n\nAll this means the United States of America Goverment can print any amount of Dollars and it does not have to back the value with Gold or with anything else.\n\nIn other words. The dollar is just a piece of paper.\n\nThe only thing backing the Dollar is the PROMISE of the United States of America Goverment to pay back someday with the taxes it collects. This is of course impossible because the money collected is less than the money spend. In other words. The United States of America Goverment is unprofitable.\n\nHowever, they just keep printing more and more money and they just selling more and more dollars.\n\nIt's like a MasterCard with Unlimited Credit and they just keep buying and buying things and they don't worry about the increasing debt because they know MasterCard is never going to cancel the Credit Line.\n\nIf you want to know how much money the United States of America Goverment owes to the rest of the world just check the link below
10242
If more money is printed, inflation increases. An extreme example is pre-WWII Germany, where the Mark fell from 4.2 to the dollar to 1,000,000 to the dollar in August 1923 and 4,200,000,000,000 November 20th. The only way to fulfill the needs of everyone would be to equalize the amount of money that people have. As long as some have more than others, some people will not be able to buy what they need.
467187
The US has an answer for every problem that can crop up. We pay specialists to sit around dreaming up problems with world currencies, just so we will have the answer, if and when that problem should come up. So the short answer is, we police the world because we have the means, the motive and the opportunity...
1153642
Because US is one of the wealthiest countries in the world. People are living a good life compare to the rest of the world. They have education, health care, basic services, advance technology, a largely advanced military, free media, etc.\n\nYes, the US govt is borrowing lots of money, but consumer spending is unbelievable. One of the richest countries in the world, and yet lack of education in finance. Most of these people don't know how to save.\n\nIn economical sense, the value of the dollar is constantly fluctuating. You need to understand Monetary Policy and Fiscal Policy to understand it.
519568
You need to look up "Bretton Woods II" on the Internet and understand it. Basically, we've been running large deficits to fund the war and pump liquidity into the banking system. In order to do this we sell our debt to foreign central banks (Mostly Japan and China). They buy our debt with the money we give them when we buy their export products (the trade deficit). The best source for commentary on our complicated economy and how it relates to the world can be found on PIMCO's website:\nwww.Pimco.com
528790
Because they don't have the seemingly limitless credit of the USA, which allows the USA to finance itself by borrowing money forever, even when it has no plan or clue how to ever pay it all back.
684173
I am assuming that you are speaking of the National Debt that is well over 8 trillion dollars.  Probably the best answer would be that under our current tax system we never will.  We have become a Nation that everyone lives on credit so it is natural for our nation to do the same thing.  Much of our debt is backed by the Public the rest is held by the Government.  The Government uses assets to back money that is loaned to them by institutions.  The Public part of the Debt is the larger part and that is backed by U.S. Savings Bonds purchased by the little guy to Treasury Bonds bought by the rich, pension plans, corporations, foreign companies and foreign governments.  The biggest question about this system is just how much control does the foreign ownership of our debt control our foreign policies towards the countries that hold a large portion of our debt.  There have been many decisions that have been made by our government that we do not understand as to why one country is okay to live one way while their next door neighbor is suspect and pressured by us.  I don't have the answer, but personally I do not like the idea that foreign governments can buy our government on the open market so to speak, however as a Nation we do not have the Wealth to hold all of it internaly.  We have loaned money to almost every country in the world especially during Wartime we have always carried the biggest chunck financially.  Virtually all of these debts have been forgiven just as we asked the world to forgive Iraq's debt to other countries in order for them to have a reasonable chance of making it on their own.  This should be our top issue in politics, yet it is always obscurred by other less important issues such as war that are used to make the public forget about the National Debt.  Our elected leaders would prefer that we remain in the dark as to how all of this is run.  We can all make a difference by buying Savings Bonds, however only about 2% of the debt is covered by that so do not expect it to make a big difference, but everything we do does help.  We need to have a National Lottery or Sweepstakes with all the profits going towards paying off our National Debt.  There is also an address where you can send donations to go directly towards the debt at the site of U.S. Savings Bonds Online if you really want to donate beyond your taxes.  I assume most people don't and would rather as the politicians wish not understand the issue.
74080
The Government does not have permission to print the money as much as it wants. The amount of money printed is decided based on the Gold reserve at the RBI, and various other factors. If more money is printed than that, the value of rupee will go down, and there will be chaos in the market. So, the government borrows money from the World Bank or IMF, thus balancing the World's Economic System.
1098257
Here`s answer for you. The juden control our money. The Fed was set up to scam america out of her gold. Also an example of a FED note.\n\n \nPeter Kershaw shows us who owns the Federal Reserve System of America in "Economic Solutions".\n\nHe lists the ten primary shareholders\nin the Federal Reserve banking system: \n1) The Rothschild Family* - London\n2) The Rothschild Family* - Berlin \n3) The Lazard Brothers - Paris \n4) Israel Seiff* - Italy \n5) Kuhn-Loeb Company* - Germany \n6) The Warburgs* - Amsterdam \n7) The Warburgs* - Hamburg \n8) Lehman Brothers* - New York\n9) Goldman & Sachs* - New York \n10) The Rockefeller Family - New York.\n\nThrough their banks, they control, and/or own outright, most of the Corporations of America, and in the entire world. \n\n A federal Reserve Note. \n\nThe swindle of the system is simple. The Federal Reserve Bank hires the US Treasury to print up some money. The Federal Reserve only actually pays the treasury for the cost of the printing, they do NOT pay $1 for each 1$ printed. But the Federal Reserve turns around and loans out that money (or credit line) to banks at full face value, those banks which have exhausted their deposits then loan that Federal Reserve fiat money to you, and you must repay it in the full dollar value (plus interest) in work product, even though the Federal Reserve printed that money for pennies, or created it out of thin air in a computer.\n\nAs the Federal Reserve overprints more money, the money supply inflates, and too much money starts chasing too few goods and services, which means prices go up. But contrary to the charade put on by the Federal Reserve, inflation doesn't just come and go due to some arcane sorcery. The Federal Reserve can halt inflation any time it wants to by simply shutting down those printing presses. It therefore follows that both inflation and recession are fully under the control of the Federal Reserve.\n\nOver time, that excess of printing has destroyed the value of that dollar you think you have. If you want to know by just how much, go out and try to purchase 371.25 grains of silver right now. Usually, the deterioration is gradual. Sometimes, it has to be obvious, such as the 1985 devaluation (done to halt the trade imbalance) which triggered the Japanese real-estate grab in this country.\n\nMany politicians have attempted to reverse this process. John F. Kennedy issued an Executive Order 11110, requiring the Treasury Department to start printing and issuing silver certificates for the silver then remaining in the US Treasury. \n\nKennedy decided that by returning to the constitution, which states that only Congress shall coin and regulate money, the soaring national debt could be reduced by not paying interest to the bankers of the Federal Reserve System, who print paper money then loan it to the government at interest. This was the reason he signed Executive Order 11110 which called for the issuance of $4,292,893,815 in United States Notes through the U.S. Treasury rather than the traditional Federal Reserve System.
1015423
Me 2 What star said is correct!! We are on a slippery slope ! The government has been keeping track of us for a long time!Now they track our money [debit cards, credit cards] there is so little cash used these days they can and do track it also. Our phones our computers stroke for stroke!