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“The United States can pay any debt it has because we can always print money.” – Alan Greenspan, Chair of the federal reserve (1987-2006).

“The United States can pay any debt it has because we can always print money.” – Alan Greenspan, Chair of the federal reserve (1987-2006).



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36 Comments

  1. To me, this is basically saying, “we can without your permission take unlimited risk and just borrow from your kids futures because we can. Deal with it.”

    This tells me just how naive the public really is when it comes to money and crypto is obviously changing that big time.

  2. There is no doubt this is true and is the core of modern monetary theory. Whether it is good or not is a very different question. One of the theses behind Bitcoin comes from the Austrian school holding that this money printing will lead to inflation.

  3. He’s factually correct. I haven’t seen the whole video so I don’t know what point he’s driving at… but from a “risk of non payment” standpoint that is for certain 0%

    If 3M promises to pay you in post-it notes their risk of non-payment is also 0%

  4. He’s not wrong, he’s just neglected to add the next sentence, that this would wipe out savers through inflation, and would mean the United States is unable to access cheap credit for about 100 years if they print enough money to pay their debts. Technically any country can print it’s currency to pay debts, the United States occupies a privileged position which will not last if it keeps printing.

  5. He’s not wrong.

    The probability of default is 0% because all of America’s debt is denominated in US Dollars—a currency that America completely controls.

    The risk of default is not what anyone’s scared of. It’s the cost of servicing the debt, the crowding out of real resources, and inflation.

  6. You can’t owe money to yourself and no country will challenge the USA to pay back the debt. It’s literally backed bybthe government and people. Most of the money never even enters the economy in the first place

  7. It surely works, since 99.99% of people use it to measure value, without USD, what do they use to measure value? It is like a standard unit of counting, like lbs or foot

    In fact, I promote something that is more objective to measure value, like KWH or Joule, and also someone said bitcoin is like a battery, you store electricity in it, and can exchange for more electricity in future

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