Biden's Economic Advisor Explains Printing Money

people are freaking out about this clip

right here because they're looking for

somebody to explain what this actually

means and how this actually works in

this video I'm going to a play you the

clip then B explain how it works in

simple English here we go US Government

can't go bankrupt because we can print

our own money it obviously begs the

question why exactly are we borrowing in

a currency that we print ourselves I'm

waiting for someone to stand up and say

why do we borrow our own currency in the

first

place like you said they print the

dollar so why why does the government

even borrow well

um the uh so the I mean again some of

this stuff gets some of the language

that the mm some of the language and

concepts are just confusing I mean the

government definitely prints money and

it definitely lends that money which is

why the government definitely prints

money and then it lends that money by uh

by selling bonds uh is that what they do

they they um they yeah they they um they

sell bonds yeah they sell bonds right

because they sell bonds and people buy

the bonds and lend them the money yeah

so a lot of times a lot of times at

least to my year with with mmt the the

language and the concepts can be kind of

unnecessarily confusing but there is no

question that the government prints

money

and then it uses that money to um

uh uh so um yeah I I guess I'm just I

don't I can't really talk I don't I

don't get it I don't know what they're

talking about like because it's

like the government clearly prints money

it does it all the time and it clearly

borrows otherwise we wouldn't be having

this debt and defic conversation so I

don't think there's anything confusing

there oh oh so how do we explain that

it's actually really simple the Federal

Reserve creates money out of thin air

this is called printing they don't

actually run a printer they just change

a digit on a spreadsheet they don't even

need to waste paper Treasury Department

can actually do that they create it and

then they lend it to the government so

the money goes from this spreadsheet to

the government who borrows it so the

government can give it to all the people

who voted for them now why do we call it

borrowing there's one word that explains

all of this it's to make you

believe that the government is actually

one day going to pay off their debt but

the reality is

they never will and instead what's more

likely to happen is people will

stop

believing and when people stop believing

and their trust goes down the value of

that funny money paper currency goes

down and eventually it goes down to zero

just like every single beat currency

that has ever existed in the history of

the world they all go to zero the Ponzi

ends when

people stop believing