Can the federal reserve print 9.2trillion dollars and pay off the debt of the U.S government?

Question

This might be stupid question but if you were president how would pay off the national debt?

Answer 1

They "could" print that much money, BUT it would devalue our monies value. Everything would cost more especially anything that was imported (what isn't these days?).

What we need to do to pay off our national debt is to stop spending money we don't have and really balance the budget.

Another thing that would help (but will never happen) is to give the president a true line item veto. This would allow the president to strip out of any bill the"pork" that is put into bills that MUST be passed. Our legislators know that is how to get the "pork" passed, they attach it to spending bills that can not be vetoed as a whole.

As for who to vote for president, look at the candidates record. Is he going to raise taxes to pay for new spending or not. Remember spending is what got our debt the way it is. Raising taxes has historically not raised that much extra money for the nation. It has been proven lowering certain taxes actually raise more money for the federal gov.

Answer 2

That would cause inflation to go up to about 8000% overnight.  A loaf of bread suddenly costs $10,000!!!  Not cool.

Answer 3

No, that would be economic suicide.

Countries that have attempted to print their way out of debt end up with hyperinflation. Zimbabwe has been trying that out and their inflation is now at 100,000% ((http://yesboleh.blogspot.com/2008/04/hyp... )

Right now M0 (the monetary base or what the Fed creates) is at $850B. This is what they judge to be the right amount to balance between prosperity and mild inflation. Printing $9T would increase the money supplly by 10 times.

But there is even a simpler answer to paying off the national debt

--> Just frigging balance the budget for 10 years in a row <--

Why 10 years? 99% of the T-Bills mature in 10 years or less. So if you balance the budget consistently (as Congress is supposed to do anyway) and the debt is paid off. Sort of...About half the debt is held interagency, kinda like IOUs.

Answer 4

The Federal Reserve could buy all outstanding treasurys if it wanted to.  This would inject 9.2 trillion dollars into the economy.

Answer 5

I'd get rid of all social programs!

Bye bye Social security, Medicare, Medicaid, Education Department, DOT, all federal grants, etc.  Then I'd work on paying off the debt.  I might liquidate some of the debt by giving away sovereignty rights to American citizens.  Selling 100% of their land to them.  I'd open up Alaska for drilling.  I'd make large corporations illegal except through franchising.  I'd throw incentives for opening up all our oil fields and drilling facilities.  Get our economy going again.  I'd make large insurance companies and large unions illegal.  I'd get rid of bureaucracy in the Military, CIA, and FBI and all real Federal jobs.  I'd eliminate the IRS as soon as possible.

OF COURSE, as president I don't have a lot of power to do this but I'd try my best.  

Oh If I could, I'd cut the prices of all congressmen, senators, judiciaries, and my job.  And force them to have real occupations, when congress isn't in session.  I'd sell out special ops groups to good payers (not necessarily cash) after a strict investigation of their plight for freedom.  I would never send the Military.  

Through these and other negotiations with the holders of our debt I would make sure not only the debt was reduced but our economics would greatly be benefitted.

Answer 6

if I was president I would not

I the president does it he will clear of the debts but the value of dollar will come so down to h**l.....

And YES the federal reserve can print it with permission

Y not?????

And if I was president I would reduce expenditure on army and focus on more productivity

And by the way i wont be the President of U.S.A

because I am an   INDIAN  citizen

Answer 7

No, it doesn't work that way.  We already have the lowest value for our money.  A long time ago, other countries were excited to get our currency because it actually meant something, now if you go anywhere you end up paying a lot more for things because our money does not convert equally to others.  Our money is c**p and our country is in trouble.

Answer 8

No, there is no value to the money.  It's like a credit card is useless unless there is some line of credit to back it up.  If you want to pay down the debt, don't elect McSame.

Answer 9

no it would lower the value of the dollor. your nations money value is only as good as the value of the nation or its amount of gold.

since everybody seems to think there running for president im going to tell you how to solve this little problem. well i would start up the organisation called the CAGW to find a eliminate most of the stupid programs that the government has that are wasting millions. and start ridding of these politions that are making millions off the system. bye bye. second i would drop the taxs to next to nothing for the first 5 years as long as the companys stayed for 10years on american soil.  (2yrs to every 1yrs tax free) that would put a lot of money back into the system from companys. next i would end a stupid war that costs billions. i would redue the tax system and tax the people with higher incomes more. require anybody on welfair to do community service or contribute back to the system in some form and require them to go to school to get a better paying job to get off of welfair. and with less people on welfair and working higher paying jobs will put more tax money back into the system. i would tax the c**p out of most imports so that more things are done within the states so more jobs open up here. example to have something fabricated in china might cost 50$ and here 200$ i would tax it up to 150$ and with shipping it would cost the same causing the companys to move back to the states. within 4 years i would have such a surpluse of money i could give everyone a tax break for years and i would have to raise the peoples tax once i would just do it how it is already done.

Answer 10

In effect that is what that is happening----they are not just printing it all at one time-----of course this why prices are high and going higher-----the countries that trade with us know this and will continue to raise the price of goods they ship to this country, including oil....Our government does not ever expect to pay off the debt, they will continue to meet their obligations with newly printed FRN's---until they will not be accepted.----there is no other alternative,even if they tried to tax at 100% all the earnings of its Citizens---to correct this, the monetary system must be changed.