The US is very much in debt, how come they can't just print up some money and hand it out,so we could all get

out of debt? Why not?

because it would make US currency cheaper than other currencies and it would affect the economy in a negative way.

because then the money would be useless and you would have to have 9 million dollars to by a popsicle.

Hello. I'm currently an Undergrad student majoring in Business -- Accounting and based on the topics I've been going over in class, I'd say that these people are right. If you increase the supply of money, it'll work wonders in the short-run: prices of goods and services, income and interest rates will increase. But that doesn't solve the problem of debt. The real issue that needs to be dealt with is how we got into sooo much debt in the first place. I dare to ask, "Why can't we just tax everyone to pay off the debt?" We citizens should pitch in together to fix this problem, right? Because we all know what would happen if everyone else in the world lost faith in our mighty dollar...

the us debt grews some 29 thousand a sec. yes every second of the day and increasing to close to 10 trillion.

It doesn't work that way. If they just print up more money, all of the existing money in circulation will be worth less. This would mean that they would have to pay higher interest rates on the debt, which would lead to higher debt payments. If interest rates are too high, that would basically kill the economy and send it into a recession/depression, which isn't exactly desirable.

We've been off the gold standard for a while. Our currency is fiat, but the same thing applies.

That would drive the value of the dollar down, creating inflation, decreasing purchasing power, and hurting the economy. To get out of debt they have to tax more, cut spending, or switch around where spending goes, etc.

If there is more money, money is worth less.

Our money would be less than dirt then. Not enough gold to back up the paper money would make it worthless

a simple answer... money only has a value of it because we print limited amounts if we printed more then the dollar would be worth less theres much more to it as far as our economy and everything else but simply put thats why

Because money would then have little or no value.

I wish I knew this answer. Im not a business person, so Ive never really understood it myself. But what Ive been told is that they can only print money that equals the amount of gold in fort knox. shrug. ok, i guess. "because if they printed more it would lose value and our economic system would fall". so that's the answer, even though, I, myself dont really understand it.

Inflation. All money printed must be backed by available gold in the US. If there is no gold to back money, our cash is worthless, because it is just paper with numbers on it. The gold reserves is what gives value to our money.

There are three parts to the money supply in the United States.

1. The amount of currency (folding money and coins) in circulation, including bank deposits that can be directly withdrawn such as checking accounts and passbook savings accounts. This is called the M1 money supply

2. Credit that can be withdrawn or sold and the money spent for goods and services. This includes life insurance policies, mutual funds, certificates of deposit, etc. This is called the M2 money supply.

3. Capital assets such as stock in companies, real estate, minerals and bonds. This is called the M3 money supply.

The total of all three money supplies equals the net worth of all goods, services and assets of the entire country and its residents. This is continually growing as our population grows, we build more houses, produce more things in our factories and grow more things on our farms.

The actual currency, which is part of the M1 money supply, can only be allowed to equal the amount of goods and services that are currently on the market for sale or exchange. If it is allowed to increase above this, the value of the currency becomes less and the prices of goods and services becomes higher. It is adjusted on a daily basis, usually upward. Since the M2 and M3 money supplies (which are only on paper or in computers and not folding money or coins) are expressed in dollars equivalent to the currency in the M1 supply they go down in value also.

Currency is not money in itself. It is only a means of exchanging the value of what you have with whatever another person has that is of equal value.

There are numerous instances of countries trying to bail thmselves out of debt by printing more paper money. In every case it led to total disaster.

The reason the Federal Reserve Bank adjusts interest rates is to either encourage people to invest money with higher interest rates, which reduces the supply of money in circulation; or get people to pull money out of savings and spend it by lowering interest rates, which increases the amount of money in circulation.

So far it has worked pretty well to control inflation.

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