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Joined 1 year ago
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Cake day: July 13th, 2023

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  • If the government just prints a bunch of money to pay off their debit then each dollar is worth less than before. Plenty of countries have done it and almost always results in hyperinflation. The simple way to understand this is say, everyone has a dollar so very few things will cost more than a dollar, but if you started handing everyone $100 bills then people will see the value of a single dollar as being lower and start charging more for their goods and services. There are other things that go into hyperinflation but this is the explain like I’m 5 answer.

    Now the government is basically paying its bills with a credit card and businesses and other countries own the debt betting that the US will keep paying towards its debt plus interest. If the government stops paying then fewer countries and businesses will be willing to offer credit. And once you run out credit then you have to start printing more money instead of adding more debt.





  • Like how the Spartans are remembered for thermopylae even though they weren’t the only ones fighting there. And then the Spartans went crying to the Persian to help them fight Athens in the Peloponnesian War. And also the first person to run a marathon died after delivering the message so now people hear that story and think I bet it won’t kill me.



  • Well the gold standard had to be abandoned when most of Europe switched to backing up their money with the value of US dollars after WW2, and then France wanted to exchange all the US cash they could get their hands on for gold so the US had to then ship all that gold to France and after that the fear was more countries would do the same thing.