December 29, 2011
Money Crisis – in this financial crisis why doesn’t the u.s. mint print more money?
By admin in Crisis FAQ | 6 comments
Money Crisis Question by knightrider702: in this financial crisis why doesn’t the u.s. mint print more money?
this is a serious question, no stupid responses
Best answer:
Answer by princess zaria
u have 2 have gold 2 back up the money
Know better? Leave your own answer in the comments!
Money Crisis
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Harold V | Dec 29, 2011 | Reply
If we print more money it won’t be worth anything because there won’t be any gold to back it up. The we’ll have inflation and prices will go up.
Joe D | Dec 29, 2011 | Reply
Inflation. It will drive the dollar lower, making pretty much everything cost more. We will probably have extreme inflation when this mess is over.
Metski69 | Dec 29, 2011 | Reply
If the Treasury just printed more money and increased the money supply, it does not make us a richer nation. When the economy is growing at a slower rate than the money supply, inflation kicks in.
We may have more money in circulation, but it is worth less than it was before. The costs of goods and services would go up to compensate for this, but your wage/salary probably would not.
The purchasing power of the average American would drop precipitously.
By the way, our currency is NOT on the gold standard. Pay no attention to the responses above. Also keep in mind that people who can not spell or punctuate properly, usually have no credibility in serious matters such as economics.
Mark S | Dec 29, 2011 | Reply
They are, at least a couple of trillion dollars so far, but that isn’t without its own problems. Namely inflation down the road, but at the moment they’re more worried about recession than they are inflation.
M dub | Dec 29, 2011 | Reply
knightrider,
we are basically printing more currency since we run a deficit. whether you print a physical note or sell a treasury bond to china you are basically printing currency that doesn’t exist.
this is why it is so dangerous to have paper currency that is not backed by something physical. it leads to inflation (which of course the government understates, it has to), and has never worked in the history of the world.
the u.s. will be no different, inflation will consume us. in 500 years this paper money will be like leaves.
Common Sense | Dec 29, 2011 | Reply
That’s exactly what’s been done. No joke. The infusion of cash into the banking system, AIG, Bear Sterns etc…. is in effect “printing money”……. next thing to watch out for in 1-2 years…. INFLATION.