Governments Borrowing Money, Instead of Printing. Good or Bad for Investing?

[Joshua Farrell]

Why do governments borrow money and pay interest when they could print all the interest-free money they need themselves?

How does this affect inflation in where you live, if the country prints off money instead of borrowing it from banks or other countries?

 

[Sincerem]

The case of borrowing has actually become a great big problem in my region as the government are continually borrowing without even creating a working system that would enable generate more funds internally to pay back those loans and prevent further debts.

 

[Robust]

The case where a government will borrow money instead of printing, in my country to me it is very very bad because the do not look for another mean to generate money to pay back the money.

 

[Holluwaphemmy]

When government borrows money, the first thing that'll be on their is to repay the debt and this will in turn cause economic recession. Moreso, if the government print money and it's in circulation, inflation will be inevitable: that's why the government does not print too many money.

 

[Sotherefore]

Printing too much of money will indicate that there's likely to be an inflation and the money will be too much in circulation, when things are too much it will automatically lose its value .

 

[glitch]

Borrowing... It gets pushed on tax payers.
Printing... It gets pushed on tax payers.

Either way, we get screwed over while the politicians line their pockets. They printed so much money that the value of USD is expected to drop so much in the next 5 years that a $30 an hour job is going to equate to $10.

 

[Robust]

Actually the government in my country prefers to be borrowing money from outside than printing a new notes of money which I think it is really draining our savings money in the government account.

 

[Ononivami]

The major reason why the government keep borrowing instead of printing new currency is to avoid inflation and to manage the economy well. if not there will be hyperinflation which is not really good for the economy.

 

[tray59]

The real issue is that some country economics is very bad so the goverment of that country will borrow money to improved the economic of that nation.

But some country are not still in debt they will actually print money and have people feel the taste of it thou you need to work for it

 

[tyrim88]

When government borrows money, the first thing that'll be on their is to repay the debt and this will in turn cause economic recession. Moreso, if the government print money and it's in circulation, inflation will be inevitable: that's why the government does not print too many money.

That is very true,because the capacity of government to actually print money is within the preview of the government,but from economic point of view they would not follow that line because of the implication in the economy which might cause inflation.

 

[Sotherefore]

If the government have to print money, it will definitely affect the economy of such country negatively . It will further depreciate the value of the country's currency, this could have been a wise decision but government knows the risks involved in doing so.

 

[tray59]

When we talk about goverment borrowing money country and country economic may not really be the same some country has potential to borrow not to print because their economic may not be too good for them to print money.

 

[tyrim88]

One of the thing that will make any government to always go for the option of borrowing money is that if it consider the option of printing there will be many circulation of currency in the system and it will cause inflation.

 

[Bookwormlux]

Government borrowing instead of printing money is a way of making sure that they do not bring about an inflation. This is also important in making sure that their Money still has got value.

 

[tray59]

There is nothing wrong if government borrow money they borrow money because they want to develop their amenities or create new one so they can pay it back when the economy is good

 

[HayKay]

I still do not have an idea to this myself but I believe it's a means to combat inflation. Less equals scarce which would ultimately translate in higher value. if more notes are pumped, the spending/purchasing power of the home economy would reduce causing devaluation of the currency

 

[Ofonime6]

Maybe if the goverment borrowed money I think that there are some certain things which you need to consider ,you need to consider the economic of that country if the economic is bad some country will chose to borrow money instead of printing but latar they may pay it back

 

[Potuse]

It is very possible for the government of the country to keep printing notes but the determinant is the inflation rate in the economies of the country. The Central Bank wouldn't want inflation rate to rise above limit.

 

[Treborika]

The issue of borrowing has become very rampant in my country. The government is often borrowing without making good policies and plans for the wisely spending of the loans. Oftenly the loans end up in money laundering activities in the country.

 

[Potuse]

The issue of borrowing has become very rampant in my country. The government is often borrowing without making good policies and plans for the wisely spending of the loans. Oftenly the loans end up in money laundering activities in the country.

I have also considered looking into such things interplay government code as well print note instead of borrowing but I think that the expenses that goes into printing is high.