A question about the debt ceiling impasse

[Silver Moon Rising]

I have an interesting question about the debt ceiling impasse and wanted to know if anyone here might have the answer. The current paradigm is that there are not enough tax receipts to pay the bills that are now due, so therefore we must go out and borrow the money from someone else. The debt ceiling imposed by the Congress won't allow borrowing more money until the debt ceiling is raised.

What is stopping the US gov from just simply printing more money to pay the bills? Why is it necessary that we must borrow it from someone else? History has shown us that other govs & kings have just printed more fiat currency or clipped coins to have enough to pay the bills. What is stopping the US from doing the same?

Is it because the Fed is a private entity that issues its own FRNs, which the US Gov would not be able to do? If the US Gov issued their own money, would it have to be US Notes? What are your thoughts about this issue?

[Joe King]

Lending it into existence is how the "money" gets to be what is known as "monetized" in a debt-based monetary system.....the fact that it has to paid back with interest makes it "worth" something to those who have their own debts to pay back.

If they truly just "printed" it, it would be like monopoly "money"....at least in the quantitys they would need to produce it in anyways.

Now, if you get rid of the "debt-based" part, it might be different. The "US notes" you refer to......but the fed won't accept them as payment towards the existing debt.

[midnight rambler]

but the fed won't accept them as payment towards the existing debt.

That's the problem, and why Ron Paul says we should just stiff the Fed on the interest since it's interest on 'money' created out of thin air.

[Joe King]

I'm all-for stiffing the fed.

Stuffin' 'em, too. Like the Turkeys they are.


No offense intended towards any actual turkeys. lol