Printing Money, ‘’What’s the Problem?”, Joe Bryan, youtube, 40 minutes
**https://www.youtube.com/watch?v=YtFOxNbmD38**
The Website
**Fiat currency is a form of money that derives its value from government regulation and public trust, rather than being backed by a physical commodity like gold or silver. It is declared legal tender by governments, meaning it must be accepted for transactions and debts. Unlike gold-backed money, fiat currency allows central banks to control the money supply through monetary policies, such as adjusting interest rates or printing new money to stimulate economic growth. This flexibility makes fiat systems more adaptable to economic changes, but also introduces risks like inflation and currency devaluation if mismanaged. Since the Nixon Shock of 1971, when the U.S. ended the gold standard, nearly all global currencies have operated under the fiat system.**
**While fiat money enables economic expansion and international trade, it is fundamentally based on trust in the government and financial institutions that issue it. If people lose confidence in a currency due to excessive inflation, political instability, or financial mismanagement, its value can decline rapidly, as seen in hyperinflation crises in countries like Zimbabwe and Venezuela. Critics argue that fiat systems are prone to debt accumulation and currency devaluation, making them vulnerable to economic crashes. This has led to growing interest in alternative stores of value such as gold, Bitcoin, and other cryptocurrencies, which operate outside government control and are seen as hedges against the weaknesses of fiat currency.**
**Between 1990 and 2025, the U.S. national debt grew from $3.2 trillion to over $36.22 trillion, driven by tax cuts, military spending, economic crises, and major stimulus programs. The 1990s saw moderate debt growth, but the early 2000s brought increased borrowing due to wars in Iraq and Afghanistan, tax reductions, and rising entitlement spending. The 2008 financial crisis triggered massive government bailouts and stimulus measures, pushing debt past $13.5 trillion by 2010. Over the next decade, ongoing deficits, tax reforms, and natural disaster relief efforts further escalated borrowing. The COVID-19 pandemic (2020-2022) led to an unprecedented debt surge, as the government spent trillions on economic relief programs. By 2025, the debt-to-GDP ratio had surpassed 130%, raising concerns over rising interest costs, reduced fiscal flexibility, and long-term economic stability. While some argue that high debt levels are manageable in a low-interest environment, others warn of inflation risks, potential tax hikes, and financial instability if borrowing continues unchecked.**
**As of February 5, 2025, the United States’ gross national debt reached approximately $36.22 trillion. This debt comprises two main components:**
• Debt Held by the Public: Approximately $28.9 trillion, representing funds borrowed from external investors, including individuals, corporations, and foreign governments.
• Intragovernmental Holdings: Around $7.32 trillion, consisting of obligations owed to various federal government trust funds and accounts.
1. Rising Interest Payments
• The U.S. government spent $726 billion on interest payments last fiscal year, consuming about 14% of total federal spending.
• As debt increases, the government must borrow more to pay interest, creating a cycle of debt dependency.