[randolph]

Originally Posted by randolph
the government can print money! By printing money the government inflates the value of the money and thus reduces the actual debt.

The debt can be paid back in cheaper dollars.

Tracy,

Printing money deflates the value of our money, and the dollar amount of the debt goes up. But regardless, the debt to other countries in non-funnymoney values remains the same.

The dollar amount of the debt does not go up, the "value" of the debt goes down by printing more money.

"Deflates the value of our money" True, what I meant to say is that printing more money can cause inflation. That is, a rise in the price of goods, which is happening right now while we are still in a recession. All the money poured into the economy is being negated by rising prices. Here in California, gas is over four dollars a gallon.