Why can't we just print money to pay off debt?
Economy | Information | History | Online | Facts | World | Global | Money
A video looking at way you can't simply print money to pay off debt. And what has happened when countries have tried to! And for that matter why a country having debt isn't necessarily a bad thing. The only reason the US has the most debt is because the US dollar is considered the most trust-worthy currency and other countries see the US as a safe place to put their money. It would be worse it countries started buying debt of other countries and stopped putting into the United States. The debt may be a lot but it's actually not something that's an issue. The US will never 'pay-off' its debt because that's not how it works. National debt only becomes an issue if GDP isn't growing, which it is. A more accurate way to see when the debt is an issue is the debt-GDP ration. In which the US is fine in that respect. Whereas Greece and Japan have debt-GDP ratios of over 150%, which is bad. Also, keep in mind that the US owns debt of many other countries. In fact, for every $1 of US debt, the US holds $0.89 of foreign debt. Note: if you're having trouble understanding the whole 'long-scale' and 'short-scale' talk then please read this Wiki article: http://en.wikipedia.org/wiki/Long_and_short_scales MUSIC: Hammock Fight - Kevin MacLeod - (incompetech.com) Licensed under Creative Commons: By Attribution 3.0 http://creativecommons.org/licenses/by/3.0/ http://incompetech.com/music/royalty-free/index.html?isrc=USUAN1100213 IMAGES: White House: Matt Wade - http://en.wikipedia.org/wiki/User:UpstateNYer Assortment of Money - epSos.de Flickr users: Nick Ares(http://www.flickr.com/photos/aresauburnphotos/) Taki Steve (http://www.flickr.com/photos/13519089@N03/) Kevinzim (http://www.flickr.com/photos/86624586@N00/) (I wrongly credited ZeroOne in the video for the image of the Zimbabwean dollars, it's actually from Wikimedia Commons, and in the public domain) Wikipedia Articles: Hyperinflation - http://en.wikipedia.org/wiki/Hyperinflation Hyperinflation in Zimbabwe - http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe Zimbabwean Dollar - http://en.wikipedia.org/wiki/Zimbabwean_dollar Hungarian Pengo - http://en.wikipedia.org/wiki/Hungarian_pengo Names of large numbers - http://en.wikipedia.org/wiki/Names_of_large_numbers Helpful YouTube videos: 'Who much money is there in the world' by Vsauce - http://www.youtube.com/watch?v=w2tKg3E53DM 'Understanding the National Debt and Budget Deficit' by John Green of the Vlogbrother - http://www.youtube.com/watch?v=3ugDU2qNcyg Clip art from http://www.clker.com/ FOLLOW ME ON TWITTER: www.twitter.com/wonderwhy7439
Comments
-
Zimbabwe, get off of deviantart
-
So joker was the good guy when he burned all the money he saved the economy yaaaaaa
-
The accent thou...
-
selling cash
50's
all security features
we send samples
only for orders more than 2k
we have a huge money factory not some small operation
a 2 million dollar operation
98% quality
the 2% is the serial number only !
highest quality
make a wickr account and ADD ME MONEYMAKER5020
serious people only
feds are welcome too 00100 -
There should be no money.
-
simply printing more money would be inflationary. However, thanks to QE, new money has already been introduced over the last 6 years. The US Govt could print US Notes (not Federal Reserve Notes) pay no interest to banks for this new currency and exchange it for the bonds being held. There wouldn't be any new money in circulation so no inflation.
-
Printing money does not create inflation only idiots on YouTube and gold bugs think that. If I print a zillion $ and then put it into a vault and don't spend it will I have inflation? NO. Even if I allow people to borrow an unlimited amount from the unlimited vault based on what they could afford with the cash rate then that is the system we have now. Where is the hyperinflation? We have a healthy amount. The government has already "printed" an unlimited supply of money but has only used a small amount of it to increase demand. Also the idiot in the video said Zimbabwe printing themselves into oblivion. Wrong, first they destroyed the productive capacity of the country and then they printed money NOT THE OTHER WAY AROUND.
-
your wrong about silver not having value. stop using silver and all the electronics we enjoy will not work as well.
-
You can print money. It's called welfare. It's free money without working.
-
Physical money is useless...........the future is online currency. Just like in the movies : )
-
The reason why dis shet is confusing is because people back then were dumbasses and didn't think nor understood simplicity, and to not make like people back then were stupid the world and countries just accepted and adapted to that concept
-
Please click on CC Click on CC at lower right corner for Subtitle/ Closed Captions
-
The US does just that.
-
In conclusion:
"It's not about the money, it's about sending a message: Everything burns!!" -
Money could actually be quite useful when stranded. Good for starting fires.
-
What US did to the gold? print a money more than the gold priced so he can pay some military who need money
that mean , US can made infinite money and buy many things -
Here's the thing, when you inflate it to help the poor, it only hurts those who have the most money in savings, so in effect it's taking the money from the rich without taxation (unfortunately this hurts retirees who use savings accounts). Though with today's global markets, the rich avoid this redistribution by moving their cash outside of the country into alternative cash holdings that isn't inflating. Which is too bad honestly...
-
A comforting thought , money halves in value, roughly every 23 years , quicker if there is a war .
-
Mind Blown
10m 9sLenght
16409Rating