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Wasif K | Suppose China can not give back a loan of 100 Dollars to US. Why not print 100 Dollars more & get red of loan? |
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 |
 
Harsh Jharia
 |
you have rightly written...
"& get red of loan"... |
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Answer Man
 |
That is EXACTLY what countries typically do, and it results in a dilution of the value of each unit of that currency unless that country's GDP is growing.
But to clarify your question a bit, China does not borrow money from the US, China buys bonds from the US, so the US owes China money (in the future) to the tune of around $900 billion. (About $3,000 per US resident) |
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nk
|
You have very correctly written, "& get red of loan" !
But, unfortunately as and when, which ever Government has done so, the currency got devaluated.
* One of the reason of rising prices. *
G o o d L u c k ! |
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tmuthiah
 |
You have not understood the functioning of monetary system
1. To base Paper Money upon the security of Land.
2. To issue Paper Money based upon the discount of Mercantile Bills.
3. To issue Paper Currency on Public Securities or Public Debts.
4) Against gold reserves.
China may lend money against gold reserves, if at all
they have. any such reserve.
They can use Japanese loans as reserve. |
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Mana D
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technology book and training-http://rampant-book.com/ |
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Beau.Gus
|
That is EXACTLY what countries typically do, and it results in a dilution of the value of each unit of that currency unless that country's GDP is growing.
But to clarify your question a bit, China does not borrow money from the US, China buys bonds from the US, so the US owes China money (in the future) to the tune of around $900 billion. (About $3,000 per US resident) |
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muneepenee
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1. last time Fed guvt paed off its debts was wen
Andru Jaksun was pres...1835. |
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prettypinkptg
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because the war is going on so you cant print more money that the government doesnt have! it sounds stupid but the government is already in debt. |
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riddhi m
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wEl aL cOuntRies cUd dO dAt gEt riCh bUt tis nOt aS eAsy aS it sEemS cOz d vAluE oF a uNit dEpnDs oN d nUmbEr oF nOtes oF dAt uNit bEinG ciRculATed iN d cOUntRy...sO iN fAct...pRintiNg mOre nOtes cN iN fAct lEad 2 pOvErty iN nAtiOn...aS hAppNd iN d cAse oV GerManY jUs bEforE d riSe oV HitLer... |
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