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If US wants to finance their deficits, they can turn on a new printing press and people wouldn't be able to do much about it. They can't just say, we want you t
by wyxuan 7y ago
If US wants to finance their deficits, they can turn on a new printing press and people wouldn't be able to do much about it. They can't just say, we want you to pay us in <safer currency>, because the USD is that currency. Other countries have to pay their debts (usually) in USD, which is controlled by US.
- selectodude 7y agoie it’s not pretty bad. sending worthless pieces of paper in exchange for goods and services that the recipient needs to then turn around and either loan back or use in the US is a net good.
- alasdair_ 7y agoThe very act of printing too much currency would cause the dollar to become less and less safe. A low levels of quantitative easing, it won’t matter much, but there is definitely an inflection point.