Question:

How is it determined how much money the United States government prints ?

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How is it determined how much money the United States government prints ?

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  1. This is a very heavy question for "Answers". The Federal Reserve Bank prints money for the U.S. It is unconstitutional, however, we can't do anything about it now. The amount of money printed is supposed to mirror the growth of our economy. It is a difficult job. Recently, 2002, the Fed printed way too much money and inflation exploded in the housing sector. Upwards of 100% in some areas. Now the Fed is trying to tighten money but meeting with varying success. Hopefully, they won't make a mistake like that again as it has caused tremendous upheaval due to the public's desire for cheap money. This is a very rudimentary explanation, but at least your eyes didn't glaze over ;)


  2. Well, first, government does not print money.  The federal reserve bank does that.  Try to find them in the government pages of your phone book.  Then look in the regular section along with all the other private corps.  They are owned by other banks, even international banks indirectly  and they are in business for profit like any other bank.

    They print money to manipulate interest rates, and to cover the governments checking account when it goes in the red.  The biggest affect of the feds is that they give government the ability to spend without limit.  So, basically, the amount of money printed is determined by how much our government overspends.  (deficits)  All this creation of money is what fires inflation.

    If government did actually print our money, as they are bound by the Constitution to do, they could do so without selling bonds and paying interest.  They could just print it and spend it into circulation.  The whole system is corrupt.  See links below.

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