Why Can't We Just Print Money to Pay Off Debt?

A video looking at way you can't simply print money to pay off debt. And what has happened when countries have tried to! And for that matter why a country having debt isn't necessarily a bad thing. The only reason the US has the most debt is because the US dollar is considered the most trust-worthy currency and other countries see the US as a safe place to put their money.

It would be worse it countries started buying debt of other countries and stopped putting into the United States. The debt may be a lot but it's actually not something that's an issue. The US will never 'pay-off' its debt because that's not how it works.

National debt only becomes an issue if GDP isn't growing, which it is. A more accurate way to see when the debt is an issue is the debt-GDP ration. In which the US is fine in that respect. Whereas Greece and Japan have debt-GDP ratios of over 150%, which is bad.

Also, keep in mind that the US owns debt of many other countries. In fact, for every $1 of US debt, the US holds $0.89 of foreign debt.

MUSIC:

Licensed under Creative Commons: By Attribution 3.0

IMAGES:

Flickr users:

(I wrongly credited ZeroOne in the video for the image of the Zimbabwean dollars, it's actually from Wikimedia Commons, and in the public domain)

Wikipedia Articles:

Helpful YouTube videos:

[KrishSharma]

if money grew on trees, it would be as valuable as leaves ....

[RobiePAX]

So, if I owe you 100 Billion. I print 100 Billion and pay you back. I fucked my country with inflation but my debt to you is paid, right?

[joaovitormatos]

I watched this video for the first time when it came out, I was 16 and got completely amused by it. This year I will receive my Economics degree and I cannot thank this guy enough for showing me the way through the job I always wanted

[PhilipMurray]

What's needed? Liquid cash. Everyone only has credit. If you have stacks of cash, you can capitalize on everyone's credit. A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying.

[dead]

Nobody:
Me when I was 8: Why don't we print money to get rich
Zimbabwe: let's print money to become richest

[SuomenMato]

What if you print more money but don't tell anyone

[ExxonMobilCompany]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio

[onehillyboi]

During WW2, the US created a new dollar for Hawaii that was dubbed the “Hawaiian Overprint Note”. Their value was equal to the USD, but in the event that Japan invaded Hawaii and captured US forces, the US government would label the currency as completely valueless so the Japanese couldn’t use it or exchange it for any reason

[wamsang]

Short answer:
Printing money makes it worthless

[acproductions]

"Why dont we just print money to pay debt"
Germany:i seen this before its a classic

[drmichaelsunsschoolformath]

I think the most important part of this topic is that money IS simply printed to pay off debt. Not only does it pay off debt, the inflation devalues the remaining debt as well.

[Samantha-xdyo]

Mrs sasha is legit and her method works like magic I keep on earning every single week with her new strategy, ...

[learnbusinesstech]

2013: "Imagine if the government sent money to every American"

2020: Yep that's why I'm here. Anyone else here in 2020?

[alizehsohail]

Here's a broader perspective....anything that becomes abudant or easily attainable, loses value. (just like money)

[bilyspenser]

These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any ideas on how to earn better on the short run?

[Lucy_Honeychurch]

It’s not because we “believe” it has value, but because we all “agree” that it has value. There is a huge difference.

[massineben]

8:55
The biggest economy in the world owes more than 60% in debt to (technically) itself.
let that sink in.

[susancarter]

I liked the conclusion where money was compared to leaves.

[annabanana]

"if everyone is super, no one is." lmao

[billisultan]

I am a student of Business studies and here I am, watching this video that answered my question that I had on my mind for years.