Print all the money!!
"This is the United States government. First of all, you never have to default because you print the money," - Donald Trump
How can the US just print the money?
Well the most obvious fact is that the Bureau of Engraving and Printing have a big giant printer that does not stop printing the damb stuff.
Then you also get the US mint that makes all the coins.. You may thing they are less important as the production costs for a coin is higher than a $100 note, but they can denominate a single coin at 1 trillion dollars and simply cash it in with the federal reserve.
Both agencies are part of the U.S. Treasury. And you can even take a tour of the money making machine and watch it print some billions by the time you leave .
Hmm ok. So they just print the money?
Well yes and no. It is not the government or even the President that decides the Ebb and Flow of the money printing machines.
It is the Federal Reserve, a private company and America's (And the world pretty much.. ) Central Bank. Typically the Fed just has to make a phone call and order more money, like when they ordered another $213 billion in July 2015.
The Feds are meant to provide two basic services to the economy.
Replace lost, broken and unusable notes.
Anticipate how much cash the economy will need.
I thought you said the prez can't order cash then.
Again, no and yes. Cash is only a small part of the US dollar monetary supply and the luckily for Donald Trump the Feds inject money another, faster way.
The Feds simply purchase Bonds from the banks.
The Fed simply does some internal accounting and boom they just bought 100 Billion dollars from bank xyz. This process is called "Quantative Easing". You may have even heard the phrase.
The Fed expected this would boost the banks and allow them to start giving out loans to you and me, but instead the banks have been using this money to speculate and buy properties etc which has led us to
inflation problems
We only have to look a short while into our history at Zimbabwe and see how hyper inflation can destroy a currency in no time.
Zim printed so much cash in 2009 that the value became worthless as the corruption allowed excessive amounts of money to enter the economy.
So yes Donald Trump can just print the money
And I will be holding some Gold, Silver, steem power and Bitcoin for when he does.
oh what a horrible vision :((
Yes scary indeed. But if you hold some other hard assets you will be ok.
Just printing (minting) the money is a scary proposition indeed. Thank you for taking the time to explain a topic that may not be well understood.
Steem on,
Mike
Thank you. It is my pleasure.
It's nothing short of excellent...Very informative indeed!...I need to ask you...Does the Treasury or the Fed have any fail safes to prevent the President of causing hyper-inflation?
Also, do you mind if I follow you...Many of us are not garnering any steem...although many of us are working extra hard on quality...we need to organize more voting blocks...