Why can’t we just print money to pay off debt?
 | BWG
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Why can’t we just print money to pay off debt? | BWG

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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 … .

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47 thoughts on “Why can’t we just print money to pay off debt? | BWG

  1. thats my suggestiom in the philippines to become great again instead waiting on investor from other country try to copy paste the china government they funded the businrss…if philippines print money ised it to buid business that businrss will gibre jobs and pay taxes as well even the worker.pay taxes! now how come the printed money doesnt have value iu could buy things for your business and those money u oaid they.ca buy what ever they want the cintractor construction company etc they all received a printed money but they didnt have a problem at all they csn used without any issues!! u know what that idea will help to booming the economy.of the philippimes imagijr if we create a hundred or.let say thousand business because of that we will solve are problem imagine the profit of those business will give a percentage to the government funds and they will pay taxes aswell a thousnd pilipino got aork!! become a double zide and share to the bisiness aswell thats anothet income on local bussiness! and all the overaeas filipino workers dollar they send it on to philoplines buy on the bank or on the money changer they have use printted money aswell and use that dollar to pay are debt on central banks!!

  2. reading this in 2021 make this video looks stupid. US prints trillions to pay off all her debts and the dollars is worth more than any other currencies on earth. and the more she prints the lower the inflation gets. Hahahahha basic economics taught in schools are all rubbish and no wonder so many teachers are now in debt

  3. When anything is more in amount it loses its value

    Such as if you have just one kid you will take care of it so much you will love him her …..he she will be so worth as you will buy anything for them.

    Now think it with 8 kids 2 ways either you treat all of them with care that is impossible cuz its hard financially you can't buy everything for everyone and now they are not as worth as the only child

  4. Great context.everyone needs more than there salary to be financially stable. The best thing to do with your money is to invest it rightly.because money left for saving always end up used with no returns. I started investing in bitcoin mid November 2020 with the help of a well-known -professional Mrs Magdalene and the profit entirely funded my recent duplex.

  5. The video is crap, it uses extreme examples to prove you cannot print money off to pay the debt while missing out on the obvious. In it, it misses out on many obvious. Firstly what is the point of the US creating money to pay off the national debt? None, I mean none. Why because the US govt orders the US fed to create $17 trillion to pay off the debt. I know, I know, I know I am being simplistic, but you get the point. Well, I hope you do. So mm the US fed creates $17tril to pay off $17 tril of US debt with a currency owned by the US govt and the debt is own by the US govt. You cannot be in debt to what you own, so printing off money to pay off the national debt is pointless because it just creates the same amount of debt. This glaringly obvious point is missing in the video.

    The US govt or any country with its own currency can never go bankrupt, esp western nations. Of course, if you created 100bn trillion and dished it out to 100 million Americans at first some Americans will go on a wild shopping spree, prices rise due to lack of goods – IN THE SHORT TERM, but that is not all, not everyone will go and by the big tv but will buy houses, mansions, etc, or even go round the world. Also, some will save and keep the money in the bank. How do I know, rich people tend not to spend much? Why? How many boats, houses, cars can you buy once you got them! So the rich just save it or invest – some let it grow via interest rates.

    Zimbabwe crisis started because the govt was booting off white farmers who happened to make most of the country's cash, which led to the monetary crisis. So it was not printing money off like toffee which causes the problem but a basic economic one. Getting rid of the money machine in your economy is daft. The same happened in Venezuela, oil price tanks reduce income, coupled with economic sanctions, revenue starts to drop and drop fast. This is acute if one's economy is not diverse enough. Venezuela's economy was not, this is down to short-sightedness and believing the oil goose will always lay its eggs.

    The US Fed and the Bank of England do create cash every day out of nothing and so do their private banks who have banking charters. They create billions and billion via a keystroke and it causes min inflation. This is done every day, of course, it got out of hand in the US in 08 and it led to the near-collapse of the whole western financial system. The UK bailed out the banks to over £1.3 tril and never got it back. The US fed bailed out banks to the tune of $29 trillion and not a hint of inflation, in fact, inflation was in danger of being close to zero or close to negativity. The interest rates now in the UK are near zero, ie 0.1%. This is after bailing out the banks, this after creating nearly £600 bn out of nothing to pay for corvid. Not a hint of inflation rose as a result of that injection of new cash.

    So what does it tell us? It says inflation can go out of control given certain rare historical circumstances and when they join together it can wreck a currency/economy. Thankfully they are very rare and recent events have proved creating a lot of money and dumping it into the economy for the right reasons does not cause inflation. Basically, people had to have the cash or they would starve or collect welfare, and that would have brought down the government and society. So the govt gave people a sort of universal basic income for months on end and it's still happening now.

    So yeah there is a money tree and no it does not cause inflation. As for the national debt, if you own the currency, you have no national debt and the US fed just forgets it and leave it there, never to pay back. That is why the bank of England still has govt national debt on its books going back to1694. the year the bank opened its doors. There is no point in paying off the national debt. None whatsoever.

    By the way, Greenspan and the bank of England let the cat out of the bag a few years ago on this.
    https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate

  6. Because government's don't print their own currency, they borrow at compounding interest rates from the privately-controlled central banks. The government borrowing to pay off debts would be like someone taking out cash advances on their credit card to pay off their credit card balance.

    “Give me control over a nation’s currency, and I care not who makes its laws” – Baron M.A. Rothschild

  7. Why can't we print hrs at businesses. I.e. The business gets paid by fed to print hrs of work it can hand out to unemployed. Catches: all persons must be accepted if they're first, medicare is not going to harm business if trouble and business can only keep 50% of money from fed

  8. Perfectly possible to print money without inflation during say a Covid lockdown where hand outs will keep people from losing their homes but not see them upgrading their car.

  9. If you print more money. The money is worthless. That is why you can't counterfeit money. It will make the "real money" worthless. And price for goods will just goes up to offsets it.

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