Economics for dummies question why do we borrow money from China or anybody?
Why don't we print the equivalent of what we would borrow I don't get it what is the point why do we need to borrow their paper to keep things in order why not just make more here im certain mathematical genius people working for the government can find a way to keeps things going and not cause inflation without borrowing fake paper? We went to the moon but we cant do basic math money is made out of paper think about it.
Economics - 1 Answers
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If US dollars are 'fake' as you say, then why would China, Japan, and the oil producing countries accept US dollars as payment for their goods? The only reason why USA can pay its way in the world with US dollars is because US dollars are real promises from the US government and not fake. And to keep those promises real, the US government has no choice but to borrow US dollars from whoever would lend instead of just print more money.
