Printing more money to cover the growing budget deficits just increases annual debt servicing costs at a time when interest rates have been increased. The old debt must be refinanced at much higher rates.
We had a $2 trillion budget deficit for FY 2023 ending September 30. Debt servicing costs in FY 2023 were over $700 billion. They are projected to go over $1 trillion next fiscal year, the largest single cost in the discretionary budget, exceeding DOD's budget.
Running huge annual deficits and printing more money just accelerates the increase in debt servicing costs and the size of the national debt, which will consume the entire federal budget left unchecked. Default is inevitable. We are being sucked into a doward death spiral.
Oh, and the Medicare Trust Fund will be exhausted in 2028 requiring, by law, a reduction in benefits not to exceed revenue. The SSTF goes belly up in 2034. Medicare and SS represent an unfunded liability of $100 trillion. We can't kick the can down the road because we have run out of road.
I read Robert Kiosk’s book “Rich Dad Poor Dad”. Should be required reading for students. Then I read the Millionaire Next Door. Got half way through and put it down. I was doing all those things.
> Printing more money to cover the growing budget deficits just increases annual debt servicing costs at a time when interest rates have been increased. <
I meant they will simply create fiat money out of thin air, just as Zimbabwe did. This will not increase the debt as they are not borrowing money. They are creating money.
This sort of action is extremely reckless, and must lead to hyperinflation. But what other choice do they have?
(Well, Congress could start today to cut expenses and start to pay down the debt. However, the chances of that happening is zero.)