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.
First, the United States cannot print it's own dollars. That privilege belongs to the federal reserve Bank.
What the United States government does to raise money is auction off debt instruments: bonds and T-notes.
When the government dumps more of these into the market than the market can absorb, the federal reserve steps in as the buyer of last resort, buying them with newly created money.
That's how government debt-spending leads to inflation and it's important to understand the dynamic behind it.
What the United States government does to raise money is auction off debt instruments: bonds and T-notes.
When the government dumps more of these into the market than the market can absorb, the federal reserve steps in as the buyer of last resort, buying them with newly created money.
That's how government debt-spending leads to inflation and it's important to understand the dynamic behind it.
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