Why cant the treasury just print more money to get us out of debt?



If we are in debt to the treasury or the treasury is broke, why cant they just print more money to get us out of debt. I have never followed politics, so I probably sound really stupid, but I would like someone to explain it to me. (As broken down as possible please. )



18 thoughts on “Why cant the treasury just print more money to get us out of debt?

  1. Christian Rea says:

    Because that would lead to inflation, which would only worsen the current economic situation. Inflation is the increase in price and decrease of the monetary value of money. In other words, printing more money would only decrease its value. This means that more money would be required to be something at a certain price. For example, let’s say that the price of a water bottle was $ 1 before inflation. Now let’s imagine that after inflation you now need $ 10 to purchase that same water bottle.

  2. The government borrows by selling Treasury securities to investors http://www.publicdebt.treas.gov/

    The value of the Dollar is is determined by how many bonds private investors are willing to hold If the government were to “print” the debt, (which would actually involve the Federal Reserve buying more bonds), investors would sell off their bonds, the value of the Dollar collapse, and you would pay $ 1000 for a loaf of bread very shortly

  3. Not really a dumb question. I hope people are being nice to you about it. Simple explanation is picture you and five other people are playing poker. You each have exchanged 100 dollars in cash for 100 dollars in chips (one dollar per chip). At the end of the game, you will exchange your chips for cash.

    But what happens if one of the players has a little machine, and as he runs out of chips, he just makes some more? It devalues the worth of all the chips. At the end of the game, there should be (regardless of who has them) 600 chips, and 600 dollars in cash. But because of the dude with the chip machine, there is 600 dollars in cash, and 2400 chips. So instead of each chip being worth a dollar, each chip is now only worth 25 cents.

    So if the government just prints more money, the money looses value. It is already happening. Prices are not really going up, the value of our money is going down.

    Lets say during your poker game, you go to the bar, and buy a soda for one chip. Soda cost a dollar, the chip is worth a dollar. Later, after the chip machine dude has made a ton of extra chips, you go to the bar, and a soda now cost 4 chips. The value of the soda did not change, it still cost a dollar. It is that your chips are worth less then a dollar now.

    Hope this make sense. Hope you didn’t think I was talking down to you.

    Have a great day.

  4. Because money IS debt. We can NEVER get out of debt with the current system. Period. Since the *private corporation* the “Federal Reserve” (nicely given name- makes you think it is a US government entity, doesn’t it?) was given over control of the money supply, we must “buy” money with interest-bearing government bonds. The bonds need to be paid back with interest. Where does the money for the interest come from? By selling more government bonds for more money, which is also charged interest.
    In other words, “Printing” your way out of debt is akin to digging yourself out of a hole or standing in a bucket with both feet and trying to lift yourself off the ground. It can’t happen. The system is designed as a giant ponzi scheme to enrich the few at the expense of the many- you and me.

    There is a way out, which is issuing our own debt-free currency and raising the reserve on the money changers (the banks) to 100%, meaning they could NOT loan out more money than they actually had. In less than 5 years all of our debt could be repaid.

    President Andrew Jackson did this, printing greenbacks (backed by “the full faith and credit of the USA”). He was immediately attempted to be assassinated. Luckily, both guns misfired and the President lived. It took 70 years for the banks to regain control.

    Another famous President tried the same maneuver. He signed an executive order to print, essentially, “greenbacks”. You may run into one occassionally. It is noticeable by the date 1963 and the red ink on the front of the bill. That president was promptly assassinated a week later. His name was John F. Kennedy. His replacement, President Johnson’s first act was to undo this act and set the banks back on course.

    When you know the truth, it is not only not stupid, it is absolutely terrifying.

  5. Good As Gold says:

    It would cause inflation and (booms and busts).

    • Riddle me this – and I understand why more money in circulation causing inflation, etc., but I don’t understand 2 thing:

      1. Why does printing more money mean all of a sudden everyone will have more dollars to spend, i.e. the treasury prints more money and it ends up in my bank account?

      2. Why don’t we just print more money to get us out of dept., i.e. print in and send it to China – don’t put it into circulation and cause hyper inflation, etc. – just pay off the debt.?

      I realize these questions come from a lack of understanding! Thank you.

  6. The treasury should print money since via the constitution they are the only ones that have the legal authority to do so.m the fed creates money because in 1913 the government gave the 12 fed banks the right to which sold us up the river. We should get rid of th fed reserve and our government should print its own money and inflation would not be a concern. Inflation happens because the fed reserve prints money out of thin air, not our government.