If the economy is jacked up right now,then how come the country doesnt make new money...?

Question

like making new money and then giving it to the government to fix up the economy?

Answer 1

They do that already. That causes inflation, printing money with no backing lowers the value of the dollar.

Answer 2

You can't just make new money.  The more money you make, the more you de-value the money that's already been made.  Such as thing will cause prices to go up on everything.  That is how the economy got jacked up in the first place.  In actuality, It works in reverse.  The more money the government destroys, the more the dollar is worth.  Think of it like a Babe Ruth baseball card.  If only one in the world is made and someone sold it on Ebay, they could sell it for say 2 million.  However, if two in the world were made, and those same two people sold it on eBay, now there is more competition for the lowest price.  So it devalues the card.  Having only one in the world gives the person with it more power........same goes for money.  Less of it made equals more purchasing power.

Answer 3

The Federal Reserve does just that:  prints fiat money to circulate through the economy.  But you must understand that printing more money devalues the dollar.  When you have more of something, the value goes down, just like when you have less of something, the value goes up (i.e. gold).  This is one reason why the economy is slumping, through fiat money and excessive printing.

Answer 4

You don't want to do that.  But Ben Bernanke is doing that regardless of the fact the more money you print the less it is worth.  The truth is that our money is due for a huge overhaul.  We are currently using FIAT money meaning it is just faith based money.  There is no backing to it not like the old days when our money was tied to a commodity such as gold and silver.  That way we can only print as much money equal to gold.  It would prevent the gov't spending on a deficit and take the power of going to war away from them as well.  

   Here is something to ponder that happened recently.  They had to print more money in order to carry out the stimulus package, that most taxpayers received, in order for us to put the money back into the economy.  How is that going to stimulate the economy?  Where are they getting this money to give to us?

Answer 5

Because then it would really be "jacked up then"... infact the reason the economy is in such chaos can be traced back to the early 20th century when the dollar ceased to be backed by gold.

Dollar bills now are mere paper with absolutely nothing to back them up than the name "United States of America"

Today new money is only created when banks give loans... the bank doesn't actually give you money out of their account into yours, they literally make new money out of thin air- this is why inflation continues to become more of a problem.

I know that Ron Paul is a nut when it comes to everythingelse but when it comes to monetary policies he's dead on!