As a candidate, Donald Trump pledged to balance the federal budget and lower the nation debt, promises that have proved difficult to keep. Once in office, Trump considered a policy of just printing money, an idea that was quickly slapped down by his chief economic advisor, according to journalist Bob Woodward's new book.
Printing money to reduce national debt seems at face really stupid, and it’s almost certainly non-optimal for the US, but it isn’t an uncommon practice among developing countries. When governments can’t afford to pay interest on debts because they’ve depleted their tax-base, they sometimes resort to creating new money because no other viable option exists. More currency chasing the same basket of resources results in inflation and in extreme cases, hyperinflation. But these governments may try to hide the fact that they’re increasing their money supply so that markets can’t accurately value their currency. If they succeed, the result is less inflation than should exist. But this can only go on for so long and eventually the public pays the cost of debt, either by theft of taxation or theft by inflation.
Wow. We’ve got a lot of armchair economists in the comments of this post. Monetary policy is one of the more complex economic disciplines. I have a graduate degree in economics and there are aspects of central bank policies that are still daunting to me. There are different types of money in circulation that have different effects on the economy. The Fed uses many levers to impact where that money resides, how much it costs to lend, and even keep employment high. There are so many variables to consider when you start talking about printing money to reduce the national debt. It would have considerable impact on all areas of the economy and I bet even the Fed chairman would find it difficult to forecast the effects.
I'm no Trump last gasper but, Bob Woodward did NOTHING other than meet the correct person. What Nixon did is minuscule compared to Obama, Bubba and Billary have done. Billary lied to the court under oath, stole the peoples uranium sold it to the Chinese. Had Vince Foster killed, Trump did as every president did since the Federal(it's not federal owned),Reserve(there is no reserve) since the unlawful act of making gold illegal FDR. FDR stole Americans money, he stole all of privately owned gold FDR STOLE OUR GOLD. Trump asked to print more, they were going to do that any way, IF TRUMP EVEN SAID TO DO THAT.
This is all alleged, but Reddit continues to treat it as gospel because of their disdain the Trump. Glad to see it’s also carrying over in this sub, which I was hoping was a haven from political sparring.
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