I have a question! Everyone look!

[studd muffin]

i was thinking to myself, why is california in debt when it can just print money? can the state do it? why or why not?

 

[Planteman]

Printing more paper money would not bring us out of debt, it would only depreciate the dollar value. The amount of paper money does not matter, it is the gold that we base the dollar value off of. This is what Germany did during WWII and their currency to ours was outrageous compared to the U.S. dollar and got to the point where you could just burn the currency for heat and would have to take wheelbarrels full of money to do simple grocery shopping.

 

[studd muffin]

Printing more paper money would not bring us out of debt, it would only depreciate the dollar value. The amount of paper money does not matter, it is the gold that we base the dollar value off of. This is what Germany did during WWII and their currency to ours was outrageous compared to the U.S. dollar and got to the point where you could just burn the currency for heat and would have to take wheelbarrels full of money to do simple grocery shopping.

So the dollar value will be worthless right?

 

[phillydog1958]

the printing of money is a federal responsibility. states have no authority over printing of money. the federal reserve is invovled in deciding how much money should be printed. Also, the bureau of engraving and printing . . .

 

[Thalan]

Exactly. Flooding the market with more currency will only make it worth less. As Planteman said, people were burning money to stay warm because it cost less than buying actual fuel.

 

[phillydog1958]

the printing of money is a federal responsibility. states have no authority over printing of money. the federal reserve is invovled in deciding how much money should be printed. Also, the bureau of engraving and printing . . .

The U.S. Treasury dept is also involved.

 

[deeda]

The United States of America no longer uses the gold standard.