When the term printing money is uses in finance.....often it refers to printing by borrowing. Since America was founded, America has always maintained integrity with it currency. A nation borrowing to raise money is acceptable because it creates a legal obligation to pay it back. As such, there is a consequence and cost to the borrowing.
However, simply printing money to pay off obligations has NEVER happened in America and ALWAYS been met with severe consequences whenever any nation has ever tried to counterfeit currency. The reason is simple, if the world's central bankers allow one nation simply to print money out of thin air......money will lose it legal significance and integrity with trade and value around the world would be destroyed.
Bankers simply cannot allow a nation to monetize to meet obligations without swift and immediate consequences. America is unique, it has a long history of integrity, a massive military, and as a result we have been bestowed with the privilege of being the world's reserve currency. Such a privilege has given our citizens a number of benefits including, but not limited to cheap Oil and other imports.
The problem now is our tax receipts are evaporating and our expenses exploding due to zombulation policies. Our deficit is on track to reach $2 Trillion dollars and there is no institution or nation in the world who can fund such a massive deficit for any sustainable period of time.
As a result, it appears Obama, Benny, and Timmy are running out of time on how they wish to proceed....if we keep printing by monetization, it is getting more and more clear that fewer and fewer countries will be willing to accept our currency as valid consideration for trade. If that occurs, the consequences to the American people will be immediate and severe. Costs for everything will explode and availability will be scarce.
At that point, our President might be faced with the difficult question of being forced to attack another nation simply to get needed resources for his citizens.
The other choice is to restructure....and for government to spend within the relative constraints of its revenues. If government cuts back, our GDP will contract materially but at least we will be able to build a sustainable foundation for future growth.
Right now, by simply printing/monetizing money.....Benny is effectively destroying America's savings and integrity while setting up America for massive distress.......even with counterfeiting/monetization, revenues to America's most important companies are evaporating....revenues can't keep contracting 25% quarter after quarter.....if they do, it will not be long before revenues contract to practically nothing.....despite how high earnings are reported through accounting gimicks.
CSX Q3 revenue declines 23% to $2.3 bln
If goods are not being shipped, they are not being sold....and a depression on only a 10% decline in GDP.