Because if the fed (the bigger central banks) stop/decrease money-printing, it could lead to panic since 44% of the GDP is tied to government spending.
Sorry, I didn't mean debt rate, but... it kinda depends on how you look at it. I'm not a financial professional, so please correct me if I'm wrong, but this is what I understood from it;
(I had to look it up again)
The current GDP of the US consists of 44% in government spending. While the Fed prints money to pay for government spending, any decrease in printing money would mean a decrease in GDP. From my understanding, this means that it is required to keep money printed 24/7 (hence the "The printing machines will be printing to keep up with printing") to prevent the public from panicking like crazy :D (since the moment that I learned about this, I already panicked, but this was maybe 6 years ago).
If the government decides to pay off debt, it will increase inflation. So, in a scenario where we print money, which adds to the debt, it seems to almost be impossible to pay off debt, unless we choose to have a higher inflation rate. But, inflation-wise, this is already the case right now (9.1%), even though we're not paying off our debt.
While numbers might not be accurate, if the whole gist of it is incorrect, just let me know (I'm a Dutch guy).
The commercial banks are the ones who create the USD.
So how can they not keep up with it since they create it?
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Because if the fed (the bigger central banks) stop/decrease money-printing, it could lead to panic since 44% of the GDP is tied to government spending.
Sorry, I didn't mean debt rate, but... it kinda depends on how you look at it. I'm not a financial professional, so please correct me if I'm wrong, but this is what I understood from it;
(I had to look it up again)
The current GDP of the US consists of 44% in government spending. While the Fed prints money to pay for government spending, any decrease in printing money would mean a decrease in GDP. From my understanding, this means that it is required to keep money printed 24/7 (hence the "The printing machines will be printing to keep up with printing") to prevent the public from panicking like crazy :D (since the moment that I learned about this, I already panicked, but this was maybe 6 years ago).
If the government decides to pay off debt, it will increase inflation. So, in a scenario where we print money, which adds to the debt, it seems to almost be impossible to pay off debt, unless we choose to have a higher inflation rate. But, inflation-wise, this is already the case right now (9.1%), even though we're not paying off our debt.
While numbers might not be accurate, if the whole gist of it is incorrect, just let me know (I'm a Dutch guy).