How does ridding the deficit sound by using all remaining money, and creating tons of fake $ for the citizens?
What is your opinion?
Answer:
There are a few things wrong with your question.
First, money is no longer backed by anything. Not gold, silver, barley, rice, or anything else. Money is backed by the fact that people trust in its value. For that reason, there is no reason to change the system as it wouldn't change anything.
Second, even if money was backed by gold or another real asset, changing the system to money backed by barely wouldn't help. The currency would still be the currency, and changing what backs it would not change the fact that we still owe what we owe as a country.
Finally, I am tired of hearing, as the other answerer said, that this is some giant conspiracy of the Federal Reserve to help out banks. The supply of money is NOT controlled by the Fed (though they do have a very strong effect), and they are also not setting interest rates to help banks. They set their rates the way they do to help the economy as a whole. Yes the richest get the biggest benefit (in nominal terms) when the economy does well, but that does not mean that the whole country does not benefit either! If the Fed was not doing it's job, you would not be able to go to Best Buy and get your TV and not have to pay anything for a year at low interest. The reason you are able to do that is because we have low inflation and stable prices. These are very complicated issues that people study for years to get good at. Not all of them agree on everything, they come from every political party, and every walk of life, but all of them agree on one thing, and that is that the Federal Reserve is not engaged in a giant conspiracy to help their banker buddies.
It's good you're thinking about such things. I'm not sure if your idea would work, because the national debt, inflation, and other monetary policy is controlled by a cabal of money-grubbing slimeballs in the Federal Reserve who create money out of thin air, charge everyone else interest on this money, and manipulate the economy in manners that suit a very small number of people.
Yeah, PH is right. Your suggestion would actually help people and that's definitely not what the oligarchy wants.
great thinking, but just start changing your currency over to Euros now... The Federal Reserve(private company). Sees to it that inflation will take this country alive. It'll get bad, and once it does. The dollar will be worth more as something to burn for heat during the winter. We can't just keep creating money out of thin air. Right now our currency isn't backed buy gold or silver. Its fiat money.
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