If the United States can print its own dollars, why does it have a debt of $39 trillion?
Correct answers only: I’ll give 10,000 sats to the best answer within the next 24 hours.
Could the US just print baby print?
Technically, yes but it would be a total disaster
If the Fed bought all 39T in debt and the Treasury spent it, the money supply would increase by 150% instantly
Inflation would skyrocket over 60% wiping out savings, pensions and wages
The dollar would start to collapse, forcing the import of goods at much higher prices
This is why even Japan avoids printing to pay debt, they rely on low interest rates and hoping the people keep having confidence in the house of cards!
Technically, yes but it would be a total disaster
If the Fed bought all 39T in debt and the Treasury spent it, the money supply would increase by 150% instantly
Inflation would skyrocket over 60% wiping out savings, pensions and wages
The dollar would start to collapse, forcing the import of goods at much higher prices
This is why even Japan avoids printing to pay debt, they rely on low interest rates and hoping the people keep having confidence in the house of cards!
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