<p>I am going to answer what I think is the true question:</p>
<p>“What are the effects of the US government mis-representing the amount of currency it prints?” (The actual wording uses imprecise terms that people mis-use.)</p>
<p>The first thing to note is that the US Treasury Bureau of Engraving and Printing is in charge of printing banknotes in the United States (the Mint produces coins. <a href="https://www.moneyfactory.gov/about.html" rel="nofollow noreferrer">Link to website.</a></p>
<p>I am no legal expert, but I think the following summary is close enough to the truth. The Treasury (and printing bureau) reports to the President, while the Fed is an independent body created by Congress. All are expected to follow laws set by Congress. The US Constitution says that Congress regulates coinage. As such, any monkeying around and not following legal procedures would be a really big issue.</p>
<p>But let’s pretend that they want to get around rules, and somehow get the hundreds of people who would see what is happening to remain quiet. What would happen if they print more banknotes than they say they are?</p>
<p>You immediately run into the problem that the Federal government - nor any legitimate business - pays for things using large amounts of banknotes. Any attempt to do so within the United States would just end up being returned to banks, and so the money would be “un-printed” as the banks ship it straight back to the Fed.</p>
<p>Dumping it overseas (as suggested) will not work, since foreigners already have too many US banknotes floating around. “Money laundering” - the conversion of banknotes to more useful bank deposts - is already a weak link for organised crime. New inflows makes the problems more difficult.</p>
<p>Furthermore, the obvious question remains: what is the U.S. government going to buy with suitcases full of \$100 bills in foreign countries?</p>

CC BY-SA 4.0
2020-08-13T16:10:26.577Z
I'm sorry, but this answer is pointless. If we assume the U.S overprinting money to get financial leverage over other countries, of course that would happen secretly and not involve standard operations like you pointed.
Charley R.
CC BY-SA 4.0
2020-08-13T16:18:13.503Z
You are asking whether the US government could run a counterfeiting operation? If so, I suggest you look at your question title, and ask how “counterfeiting” turned into “printing infinite money”?
Brian Romanchuk
CC BY-SA 4.0
2020-08-13T16:40:14.290Z
The definition of "counterfeit" is to make something fake look like the original. If the government itself is doing it, the money is original, no counterfeit needed.
Charley R.
CC BY-SA 4.0
2020-08-13T16:50:38.613Z
It would be money created using an illegal process. Yes, “counterfeiting” would not be the legal charge. I’m not a U,S. legal expert, but Congress is given the power to regulate the currency. Having a Department violate the law would be a violation of the Constitutional separation of powers, and would be prosecuted as such. Nevertheless, your question text still makes no sense.
Brian Romanchuk
CC BY-SA 4.0
2020-08-13T17:07:09.583Z
Actually, they would most likely count as counterfeit. Valid US banknotes have serial numbers. If the “extra money” was included in the list of valid serial numbers, people would be able to tell that the published totals are incorrect. If the serial numbers are invalid, they are treated as counterfeit.
Brian Romanchuk
CC BY-SA 4.0
2020-08-13T18:23:36.477Z
I think I got what you are saying. In this [link](https://www.usatoday.com/in-depth/news/2020/05/08/national-debt-how-much-could-coronavirus-cost-america/3051559001/) it's explained how the government doesn't actually physically print the money to make more money. Although you're technically right, the others who commented my question seemed to understand what I meant and didn't take it too literal.
Charley R.
CC BY-SA 4.0
2020-08-13T16:02:52.633Z
2020-08-13T18:57:42.500Z
2020-08-13T18:57:42.500Z
Brian Romanchuk
<p>I know that a country can't simply print money to pay debt, since it would only lower the value of the money, i. e. cause inflation.</p>
<p>But what about the U.S? Since their new printed money is very likely to end up somewhere else, it wouldn't increase local inflation, thus giving the U.S. infinite money.</p>
<p>Thoughts on possible implications of U.S printing large amounts of money:</p>
<ul>
<li><p>Since most countries keep a US dollar reserve, but only the U.S can print them, by doing so the U.S is deliberately making everyone else poorer, since the dollar value would drop down.</p>
</li>
<li><p>Internal inflation in the US increases as the amount of dollars inside the border increases. But if most of the overprinted dollars stay abroad, it wouldn't affect internal inflation.</p>
</li>
</ul>
<p>What's wrong about those ideas?</p>

CC BY-SA 4.0
2020-08-13T13:34:03.480Z
Problem here is twofold. 1. Countries keep dollar reserves only because they believe dollar has stable value, they are not doing that for fun or because of some numismatic reasons as a collections. 2. Generally speaking the only place where you are guaranteed that your dollars are accepted is USA. In Germany if you go to store with bunch of dollars store clerk can decide to not accept them. Hence, the main point of holding dollars is to buy stuff from USA at some point. This would work only if you can convince those other countries to bury the dollars and never use them
1muflon1
CC BY-SA 4.0
2020-08-13T14:55:05.547Z
@1muflon1 international companies trade with each other in US dollars, even when none of them is american.
Charley R.
CC BY-SA 4.0
2020-08-13T14:58:23.927Z
And so? The same as above applies except substitute company for country
1muflon1
CC BY-SA 4.0
2020-08-13T15:02:21.630Z
My point is: U.S prints money and uses it to import goods; That money never comes back into U.S, instead it goes to other countries reserve or is used by companies to trade with each other (not necessarily with american companies). Result: the U.S bought goods with printed money without consequences.
Charley R.
CC BY-SA 4.0
2020-08-13T15:06:32.580Z
Except your point is wrong. US prints dollars then it has to take those dollars to forex market to convert it to foreign currency let’s say euros then it can use those euros to buy EU products as an imports. If some EU company allow US to buy products for dollars directly it’s only if they actually need those dollars to purchase some US goods or services- what do you think that people outside US are addicted to collecting dollars? Hence in the end always dollars find their way home as long as people actually use them and not just keep them as collectibles
1muflon1
CC BY-SA 4.0
2020-08-13T15:08:17.583Z
I think the problem here is that you lack the understanding of international trade and view it in some simplistic terms otherwise the issue with this would be obvious to you if you are interested in learning more about this just look at any international economics textbook Krugman et al international trade theory and policy is an excellent resource for beginners
1muflon1
CC BY-SA 4.0
2020-08-13T15:16:24.440Z
That really seems to be the case. I'm a layman and opened the question exactly to understand why my ideias were wrong. I actually assumed they were wrong from the beginning, I just didn't know why.
Charley R.
CC BY-SA 4.0
2020-08-13T15:48:57.057Z
This question should be fixed or closed. Printing money” is a phrase that bears no resemblance to what is actually happening.
Brian Romanchuk
CC BY-SA 4.0
2020-08-13T16:03:35.347Z
@BrianRomanchuk What do you mean by "actually happening"? My question is hypothetical, just a brain teaser. At no point I affirmed this actually happened.
Charley R.
CC BY-SA 4.0
2020-08-13T16:07:40.467Z
See my answer.  “Printing money” is done by the Bureau of Engraving and printing, or the Mint, if one includes minting coins as part of “printing money.”
Brian Romanchuk
CC BY-SA 4.0
2020-08-13T18:12:04.983Z
The title of this question makes no sense. Printed money is a physical items, and consist of a large number of atoms. The number of atoms in the universe is finite. Therefore, it is trivially true that “infinite money” cannot be printed.
Brian Romanchuk
CC BY-SA 4.0
2020-08-14T21:19:19.037Z
No. Eventually they'll run out of paper.
Criticize SE actions means ban
<inflation><currency><usa>
Can the U.S print infinite money?
Charley R.
# Can the U.S print infinite money?

(Asked by: username_0 on 2020-08-13)

I know that a country can't simply print money to pay debt, since it would only lower the value of the money, i. e. cause inflation.

But what about the U.S? Since their new printed money is very likely to end up somewhere else, it wouldn't increase local inflation, thus giving the U.S. infinite money.

Thoughts on possible implications of U.S printing large amounts of money:

* Since most countries keep a US dollar reserve, but only the U.S can print them, by doing so the U.S is deliberately making everyone else poorer, since the dollar value would drop down.
* Internal inflation in the US increases as the amount of dollars inside the border increases. But if most of the overprinted dollars stay abroad, it wouldn't affect internal inflation.

What's wrong about those ideas?

**Tags:** inflation, currency, usa
> **Comments:**
> **username_1**: Problem here is twofold. 1. Countries keep dollar reserves only because they believe dollar has stable value, they are not doing that for fun or because of some numismatic reasons as a collections. 2. Generally speaking the only place where you are guaranteed that your dollars are accepted is USA. In Germany if you go to store with bunch of dollars store clerk can decide to not accept them. Hence, the main point of holding dollars is to buy stuff from USA at some point. This would work only if you can convince those other countries to bury the dollars and never use them  
> **username_0**: @1muflon1 international companies trade with each other in US dollars, even when none of them is american.  
> **username_1**: And so? The same as above applies except substitute company for country  
> **username_0**: My point is: U.S prints money and uses it to import goods; That money never comes back into U.S, instead it goes to other countries reserve or is used by companies to trade with each other (not necessarily with american companies). Result: the U.S bought goods with printed money without consequences.  
> **username_1**: Except your point is wrong. US prints dollars then it has to take those dollars to forex market to convert it to foreign currency let’s say euros then it can use those euros to buy EU products as an imports. If some EU company allow US to buy products for dollars directly it’s only if they actually need those dollars to purchase some US goods or services- what do you think that people outside US are addicted to collecting dollars? Hence in the end always dollars find their way home as long as people actually use them and not just keep them as collectibles  
> **username_1**: I think the problem here is that you lack the understanding of international trade and view it in some simplistic terms otherwise the issue with this would be obvious to you if you are interested in learning more about this just look at any international economics textbook Krugman et al international trade theory and policy is an excellent resource for beginners  
> **username_0**: That really seems to be the case. I'm a layman and opened the question exactly to understand why my ideias were wrong. I actually assumed they were wrong from the beginning, I just didn't know why.  
> **username_2**: This question should be fixed or closed. Printing money” is a phrase that bears no resemblance to what is actually happening.  
> **username_0**: @BrianRomanchuk What do you mean by "actually happening"? My question is hypothetical, just a brain teaser. At no point I affirmed this actually happened.  
> **username_2**: See my answer.  “Printing money” is done by the Bureau of Engraving and printing, or the Mint, if one includes minting coins as part of “printing money.”  
> **username_2**: The title of this question makes no sense. Printed money is a physical items, and consist of a large number of atoms. The number of atoms in the universe is finite. Therefore, it is trivially true that “infinite money” cannot be printed.  
> **username_3**: No. Eventually they'll run out of paper.  

---

## 1 answers

### Answer by username_2 on 2020-08-13. Score: 0

I am going to answer what I think is the true question:

“What are the effects of the US government mis-representing the amount of currency it prints?” (The actual wording uses imprecise terms that people mis-use.)

The first thing to note is that the US Treasury Bureau of Engraving and Printing is in charge of printing banknotes in the United States (the Mint produces coins. [Link to website.](https://www.moneyfactory.gov/about.html)

I am no legal expert, but I think the following summary is close enough to the truth. The Treasury (and printing bureau) reports to the President, while the Fed is an independent body created by Congress. All are expected to follow laws set by Congress. The US Constitution says that Congress regulates coinage. As such, any monkeying around and not following legal procedures would be a really big issue.

But let’s pretend that they want to get around rules, and somehow get the hundreds of people who would see what is happening to remain quiet. What would happen if they print more banknotes than they say they are?

You immediately run into the problem that the Federal government - nor any legitimate business - pays for things using large amounts of banknotes. Any attempt to do so within the United States would just end up being returned to banks, and so the money would be “un-printed” as the banks ship it straight back to the Fed.

Dumping it overseas (as suggested) will not work, since foreigners already have too many US banknotes floating around. “Money laundering” - the conversion of banknotes to more useful bank deposts - is already a weak link for organised crime. New inflows makes the problems more difficult.

Furthermore, the obvious question remains: what is the U.S. government going to buy with suitcases full of \$100 bills in foreign countries?

> **Comments:**
> **username_0**: I'm sorry, but this answer is pointless. If we assume the U.S overprinting money to get financial leverage over other countries, of course that would happen secretly and not involve standard operations like you pointed.  
> **username_2**: You are asking whether the US government could run a counterfeiting operation? If so, I suggest you look at your question title, and ask how “counterfeiting” turned into “printing infinite money”?  
> **username_0**: The definition of "counterfeit" is to make something fake look like the original. If the government itself is doing it, the money is original, no counterfeit needed.  
> **username_2**: It would be money created using an illegal process. Yes, “counterfeiting” would not be the legal charge. I’m not a U,S. legal expert, but Congress is given the power to regulate the currency. Having a Department violate the law would be a violation of the Constitutional separation of powers, and would be prosecuted as such. Nevertheless, your question text still makes no sense.  
> **username_2**: Actually, they would most likely count as counterfeit. Valid US banknotes have serial numbers. If the “extra money” was included in the list of valid serial numbers, people would be able to tell that the published totals are incorrect. If the serial numbers are invalid, they are treated as counterfeit.  
> **username_0**: I think I got what you are saying. In this [link](https://www.usatoday.com/in-depth/news/2020/05/08/national-debt-how-much-could-coronavirus-cost-america/3051559001/) it's explained how the government doesn't actually physically print the money to make more money. Although you're technically right, the others who commented my question seemed to understand what I meant and didn't take it too literal.  

---

