If money can be printed why do our government borrows money from other country?

[Uhwuchukwu53]

Well I may not be good analyst of the economist principle but I think borrowing by government stand the best choice in reducing inflation and the value of their nation currency, this borrowing would have been the best if the government invested the money wisely to which purpose it's borrowed for, it would have reduced excessive printing of it's currency where it will be surplus in the society. We are all know how demand and supply laws work which affect products, the cash printed is too surplus in the society it automatically reduced the value of the currency as it will be saturated, I recall when a government in my nation printed one denomination of their currency more than other how it affected the society as citizens begin to complain, apart from the printing of currency have regulations, even the cost of printing is not easy.

[GiftedMAN]

Well I may not be good analyst of the economist principle but I think borrowing by government stand the best choice in reducing inflation and the value of their nation currency, this borrowing would have been the best if the government invested the money wisely to which purpose it's borrowed for, it would have reduced excessive printing of it's currency where it will be surplus in the society. We are all know how demand and supply laws work which affect products, the cash printed is too surplus in the society it automatically reduced the value of the currency as it will be saturated, I recall when a government in my nation printed one denomination of their currency more than other how it affected the society as citizens begin to complain, apart from the printing of currency have regulations, even the cost of printing is not easy.

Yeah borrowing from other countries can indeed prove to be a much better option than excessive printing of money, but mind you, this is only under strict conditions. When a country borrows money, they’re like tapping in and pulling funds from an already existing pools of capital, while printing on the other hand injects new money into circulation and that difference has its own impact on inflation.

The borrowing of money itself isn’t the actual problem, the issue usually starts with what really happens after borrowing the funds. When these funds are borrowed and invested in productive sectors, energy, infrastructure and other sectors that’ll improve the economy of the country, it strengthens confidence in the economy and this is capable of even stabilizing the currency overtime. But the moment that that borrowed funds are lavished on irrelevances, what they’re doing is only delaying inflation pressure and not really fixing it.

[letteredhub]

If the government starts printing money uncontrollably, this will lead to increased inflation. Many governments have gone through this repeatedly, but despite this, this lesson is poorly learned and some governments still consider this the right thing to do to solve their financial problems, and thereby create conditions for increased inflation and economic decline.

Neither more printing of money or the borrowing of it can bring about a better economic growth as they both have their negative consequences on the economy of the country. What any government must do to create a pathway for her economy to sprout is to think internally for solutions, build local industries and infrastructures that would in no distance years solve much of their financial problems that may lead to money printings and borrowing that follows with conditions that doesn't benefit their local industries.

[HONDACD125]

Well I may not be good analyst of the economist principle but I think borrowing by government stand the best choice in reducing inflation and the value of their nation currency, this borrowing would have been the best if the government invested the money wisely to which purpose it's borrowed for, it would have reduced excessive printing of it's currency where it will be surplus in the society. We are all know how demand and supply laws work which affect products, the cash printed is too surplus in the society it automatically reduced the value of the currency as it will be saturated, I recall when a government in my nation printed one denomination of their currency more than other how it affected the society as citizens begin to complain, apart from the printing of currency have regulations, even the cost of printing is not easy.

First things first, neither borrowing from other nations nor printing more money can help reduce inflation in a country because high inflaton is a result of unstable economy, and the economy of a country cannot stabilize by taking loans and then using that money to do development work or anything within the country, because the debt has to be repaid, which means that if you have spent the money and now you have to repay it with interest, you will be compelled to take more loans from other nations to repay the first ones, or simply repay the loan by giving up on something that your nation produces, which is also a lost for the economy.

Yes, you can say that a loan taken from another country could be useful and effective if it's used on something that in return will generate revenue for the government, and then the government can use that revenue to repay the loan, but most countries have corrupt officials, and the loans taken are used more for personal benefits than being spent on the country and the people, which is the reason why most of the times when countries take loans, it doesn't directly affect their economies positively but does it negatively.

[Royal Cap]

The problem is not that the government borrows, the real problem starts when that money is not properly utilized. If the debt can be invested in productive sectors, it can also help reduce the pressure on the currency but when money is repeatedly printed to meet the deficit, the supply in the market increases and the value of the currency naturally decreases, I have also seen how excessive printing affects the lives of the common man the most. In my opinion it is not the debt, but the debt management that is the real problem.

[retreat]

That's what I thought when I was 5 years old, but after understanding the basics of economics, I understood why a country can't print more money than it can afford and why it needs to borrow from other countries to maintain the stability of its currency and keep its economy running.

And actually, foreign debt isn't a bad thing - if a country is able to manage its debt wisely and uses it to finance infrastructure development, education, or other things that can stimulate economic growth, then it will be beneficial for the country in the future.

[barbara44]

We normal people are the ones seeing country's debt as a problem, it's never a problem because this is just one of those ways to keep your country's money valuable rather than printing money only for inflation to attack very fast. Remember, even rich people use debt to their advantages, debt has it's advantages.

I am not sure if there were also countries that doesn't have a debt but maybe there were too, because they were now the ones that lends money on the other country. Like for example I heard the country of the Philippines borrowed money from Russia before. Having a loan must have an interest, so it must still be wise to not get caught in a debt. It also makes the reputation of our country clean and strong.

If we have a fund left, this is only the ones that we will use or better be not too ambitious on having this and that if we lack of funds yet. See what happens with the US country? They may be huge but they are also now known for having an unsettled bill.

[Miles2006]

I am still shocked to know that even when money can be printed as much as possible, countries, nations goes after each others to borrow money but yet they can on their own print money instead of having to go borrow and leaving the nation indebted other nations. Just as for instance our country do borrows money from China.

Is that right or they are trying to maintain economic value?
What do you think?

This idea is all about theft, do you actually think governments borrowing money from other country is also a nice idea? Hell no. All this idea was built base on theft and yet they request for money from developed country just to accomplish a project and still these projects are not worth it, surprising part here these money borrowed will not be paid immediately instead the debt are transferred to younger generation making everything complex for the economy growth, wondering why anyone will think in this manner whereby governments just have to print money and use or save for what exactly? The money allocated monthly is enough for the country development.

[ecnalubma]

I am still shocked to know that even when money can be printed as much as possible, countries, nations goes after each others to borrow money but yet they can on their own print money instead of having to go borrow and leaving the nation indebted other nations. Just as for instance our country do borrows money from China. Is that right or they are trying to maintain economic value? What do you think?

The primary reason a government cannot simply print its way out of debt is that an unlimited increase in the money supply leads to hyperinflation, which destroys the purchasing power of the local currency. By borrowing from other nations instead, a country can bring in foreign capital to fund infrastructure and growth without immediately devaluing its own money at home. This approach helps maintain a level of economic stability, though it admittedly leaves the nation with a long-term burden of debt and interest.

Furthermore, borrowing from international partners often facilitates strategic trade relationships and allows a country to access stronger foreign currencies like the U.S. Dollar or Euro. Printing more local currency does not help pay off debts denominated in foreign currencies in fact, it makes those debts more expensive to settle as the local currency's value drops. Ultimately, while borrowing seems counterintuitive when a press is available, it is a necessary tool used by central banks to manage global trust and prevent a total domestic financial collapse.

[Powerjumboo]

I am still shocked to know that even when money can be printed as much as possible, countries, nations goes after each others to borrow money but yet they can on their own print money instead of having to go borrow and leaving the nation indebted other nations. Just as for instance our country do borrows money from China.

Is that right or they are trying to maintain economic value?
What do you think?

If the government prints money as per its wish, then inflation will increase in the country because uncontrolled printing of money means increase in inflation in the country. Some governments may have fallen into this situation but in the end they have increased inflation in their country where the quantity of money has increased but the value has decreased considering the country especially after all the government of the country instead of printing extra money takes loans from different countries where the economic situation is good.

[Republikcoin.com]

If the government prints money as per its wish, then inflation will increase in the country because uncontrolled printing of money means increase in inflation in the country. Some governments may have fallen into this situation but in the end they have increased inflation in their country where the quantity of money has increased but the value has decreased considering the country especially after all the government of the country instead of printing extra money takes loans from different countries where the economic situation is good.

A government that still has a prudent mindset about maintaining the value of its currency will certainly not print money recklessly if it wants to maintain its value and avoid excessive inflation. Because almost everyone knows that if the amount of money circulating in society is already excessive and exceeds normal capacity, the value of money will be more easily eroded, and prices will never stabilize because money is more readily available to most people. Therefore, governments in both developed and developing countries will not make such a fatal mistake in the current situation.