Micael
· 9w
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.
I think the answer you’re looking for goes beyond the monetary expansion from private lending. The government spends more than it takes in and is bound by a statutory architecture: the Antideficiency Act, the rule that Treasury’s account at the Fed can’t go negative, and the prohibition on the Fed buying Treasuries directly. This forces every overspent dollar to be matched with a Treasury security. The Treasury can’t (yet) spend whatever it wants without issuing some sort of bond to cover the overspending dollar for dollar.
