25
May

You mean print more money? That causes inflation. The US is in less debt than a lot of other countries as far as governments go as a % of GDP. Our GDP is 13 trillion.


Answer:
Technically, we have the ability to and we do.

When the government needs cash, we issue treasuries. We sell this debt to banks (who sell it to the public). In return, we take money out of the system and the treasury can use this for government purposes. That is why our debt is “risk-free”. Theoretically, we have the ability to just print money to pay it down. But if we did so, we would put too many dollars into the system, making the value of the dollar plunge and thus increase inflation. The simplified definition of inflation is “too many dollars chasing too many goods.” We do not want inflation beyond a certain point, so that is why we’ve not printed money to pay off all our debt.


Answer:
Because the politician who promises to raise taxes to get us out of debt would get less than one percent of the vote.

Answer:
as with everything else to more of it there is the less value it has.

Answer:
Even the phony money we use has it's limits. It can't be used to pay for itself.

Book Mark it-> del.icio.us | Reddit | Slashdot | Digg | Facebook | Technorati | Google | StumbleUpon | Window Live | Tailrank | Furl | Netscape | Yahoo | BlinkList
This entry was posted on Sunday, May 25th, 2008 at 3:22 am and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

Leave a reply

Name (*)
Mail (*)
URI
Comment