why the government doesn’t have infinite money.
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Many governments ruined their money by printing too much of it. germany after WW1, Argentina after WW2, Zimbabwe recently. Others explained that part well enough.
One special case however would be the USA. Most of the dollars in circulation aren’t in the USA. The money is so stable, over 70% of all international transactions use Dollars as one of the two currencies involved, or straight dollar to dollar. Until recently, the USD was the only currency accepted at all to buy crude oil. Even Soviet Russia sold their oil for USD.
There is so much economic activity involving the dollar that the USA can, and definitely does print more money than everyone else without provoking hyperinflation. The flip side of that is that if the USA wants to keep its dollar as THE main currency that everyone else pegs their currency to, they can’t go stupid and print absurd sums either. If they lose the statuys as the world’s reserve currency, many bad things would happen economically, so the FED is fairly careful about how much money they print.
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