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"With the printing money, there has to be a limit." Banks do it every time they lend, so that can't be the limiting factor can it. You're looking at the syste
by neilwilson 6y ago
"With the printing money, there has to be a limit."
Banks do it every time they lend, so that can't be the limiting factor can it.
You're looking at the system incorrectly. Try it this way.
To spend you have to have two things - liquidity to complete the purchase and something available to buy.
Which gives you the obvious limit - spending stops when you run out of things to buy available for sale in the denomination at a price worth paying.
So it stops automatically - largely because the pejorative "printing money" line has nothing to do with the control mechanism in the system. Money is a dynamic thing. Systemically it pops into being and disappears as required.
"printing money" is just the accounting counterparty of "saving money". If you want to stop it or reduce it, simply delete everybody's monetary savings. That will cause all national debt to disappear by accounting identity.