Sort:  

The commercial banks are the ones who create the USD.

So how can they not keep up with it since they create it?

Posted Using LeoFinance Beta

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).