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Germany Inflation Rate | 1950-2021 Data | 2022-2023 Forecast | Calendar

source : tradingeconomics.com

Germany Inflation Rate | 1950-2021 Data | 2022-2023 Forecast | Calendar

Consumer prices in Germany increased 1.7 percent year-on-year in March of 2021, in line with preliminary estimates and following a 1.3 percent rise in February. It is the highest inflation rate since February of 2020 as the temporary reduction of the VAT rates ended. Reduced VAT rates came into effect on July 1st 2020 for six months, as part of government measures to support the economy during the pandemic. Higher commodity prices, a CO2 charge introduced at the beginning of the year and a base effect as last year the inflation fell, also contributed to the rise in the CPI. Main increases were seen for energy (4.8 percent), namely heating oil (19.4 percent), motor fuels (12.7 percent), natural gas (2.2 percent), fruit and dairy products (2.5 percent each) and tobacco (4.3 percent). On a monthly basis, consumer prices were up 0.5 percent, also in line with early estimates. source: Federal Statistical Office

Inflation Rate in Germany averaged 2.34 percent from 1950 until 2021, reaching an all time high of 11.54 percent in October of 1951 and a record low of -7.62 percent in June of 1950. This page provides the latest reported value for – Germany Inflation Rate – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Germany Inflation Rate – data, historical chart, forecasts and calendar of releases – was last updated on April of 2021.

Inflation Rate in Germany is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Germany to stand at 1.80 in 12 months time. In the long-term, the Germany Inflation Rate is projected to trend around 1.70 percent in 2022 and 2.00 percent in 2023, according to our econometric models.

Average Salaries and Living Costs in Germany | Property Prices

Average Salaries and Living Costs in Germany | Property Prices – Germany's price level is generally in line with the EU average. That is, life in Germany is less expensive In addition, Germany has experienced a sharp increase in net immigration since 2010 which has led Just like rents, German property prices vary significantly between regions and towns.Full article. Inflation: price changes over time. The average annual inflation rate of the EU (based on an index using a changing aggregate reflecting The HICP is an index for measuring, over time, the change in prices of consumer goods and services acquired by households in monetary transactions.Inflation is defined as a general increase in the prices of goods and services, and a fall in the Another well-known example of hyperinflation was Germany in the 1920s when the government took stimulus While inflation is not entirely good or bad depending on whether it is moderate or severe…

Consumer prices – inflation – Statistics Explained – Most Recent Value. Germany. 2019.Inflation measured by consumer price index (CPI) is defined as the change in the prices of a basket of goods and services that are typically purchased by specific groups of households. Inflation is measured in terms of the annual growth rate and in index, 2015 base year with a breakdown for food…Germany's consumer price inflation rate is expected to pick up to 1.7 percent year-on-year in March 2021, the highest since February 2020 and in line with market expectations, a preliminary estimate showed. Goods prices should advance at a faster pace (1.9 percent vs 1.0 percent in February)…

Consumer prices - inflation - Statistics Explained

Inflation Calculator – Price Indices and Inflation- Macro 2.4. Laspeyres Price Index and Paasche Price Index. Economics in Many Lessons.The French Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.In an economy experiencing inflation, most prices are likely to be rising, whereas in an economy Money loses value when its purchasing power falls. Since inflation is a rise in the level of prices There are stories about how people in Germany during the hyperinflation brought wheelbarrows full of…

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SAP Jobs Salaries in Germany || SAP Salary || Tips to expect & evaluate SAP consultant salaries – hello everybody welcome to Kleinemann
channel in this video i will talk about SAP specific salaries in germany I will
share my opinion for some of the most discussed topics in SAP job market what
should be the salary for a SAP consultant with 5 or 10 years of experience how
much salary an ABAP developer with project experience in latest
technologies like fiori can expect and what is the effect of outsourcing in
general job market how it effects the salary offered to a consultant and I
will also share my opinion with basic German or with lack of German
should somebody go for less salary is it really a factor that effects your
salary okay let's get started salary in Germany is decided based on 5
different factors recently I made a video explaining those five factors if
you haven't watched that video please have a look at it.
In Germany SAP has
wide range of application areas hospitals banks publishing houses
automobile companies retail industries energy companies and numerous other
sectors have SAP in place industry sector is one of the important factors
which decides the offered salary let's have a look at some of the best paying
industries in germany chemical and pharmaceutical companies automotive
companies banking and insurance companies luxury goods manufacturers and
retail companies are known for paying higher salaries in germany. Salary is
unique to everybody based on project experience skills and number of years of
experience many job portals provide many different numbers for SAP consultants in
Germany these numbers seem very realistic to me based on my experience
and my interaction with other SAP consultants in Germany if you have
5 to 10 years of experience you can expect salary in the range of 70 to
80 thousand euros if you have more than 10 years of experience most likely you
are a team lead or a project manager you can expect salaries above 80
thousand euros which is more realistic in Germany company size plays an
important role in deciding the offered salary an University graduate with no work experience gets a salary of around 44,000 when he starts his career
with a small company which has got around 500 employees and at the
same time a graduate who starts his first job with a larger
company which has got more than thousand employees has an average salary of
around 60,000 euros location of a company is very important when
evaluating salary requirements this image has the locations of all major
German companies as you can see most of the German companies are located in
southern Germany in the states of Baden Wurttemberg and Bavaria and also in
nordrhein-westfalen which is in West Germany northern Germany and eastern
Germany have relatively lesser number of companies the German states Baden-Württernberg and Bavaria have relatively higher cost of living compared to other
German states based on reference average salaries for a university graduate we
can calculate the expected salaries for someone with five or ten years of
experience in Germany the salary increase per year is in the range of
three to five thousand because of lower inflation rate so let us assume 3%
salary increase for our calculation SAP consultant with five years of experience
can expect salary in the range of around 61 thousand euros when he or she finds a
job with a company which has got around 500 to 1,000 employees and
a consultant with 10 years of experience can expect salary in the
range of 70,000 euros per year A large company with more than thousand
employees can offer salary around 68,000 euros for someone with five years of
experience and consultants with 10 years of experience can expect salary
around 80 thousand euros it's difficult to generalise the salaries offered in
various industries in general German companies and large international
companies pay higher salaries direct placement with companies is always
beneficial for better monetary benefits as companies can save additional costs
for intermediatery agents if you have experience from one of the best paying
industries or you have project experience in latest technologies you
can always expect salaries higher than the average for example automotive is
one of the best paying industries in Germany if you are an SAP SD consultant and you
have automotive specific experience for example in EDI you have experience of EDIFACT standard customizing of just in time just in sequence procedures and
related IDOCS like DELJIT DELINS etc and also automotive specific
self billing and consignation procedures in pharmaceutical industry if
you are an SAP PP consultant and you have process industry specific SAP
experience you can expect higher than average salary from one of the larger
pharmaceutical companies in Germany having practical project experience in
latest technologies like s4 Hana and Fiori will also help in getting higher
than average salaries few years back I came across a situation when a large
consulting company in Germany was looking for an experienced Fiori
developer but no experienced fiori developer was locally available and the
company had to train a web developer to do the front-end JavaScript coding in Fiori
the interesting thing in Fiori development is most of the classical
ABAP developers don't have JavaScript skills which has got its own unique
libraries large international companies usually have globally distributed
development teams for back-end and front-end development for cost advantage
but non consulting companies usually expect developers who can do both
back-end and front-end development in fiori if you are an ABAP developer who
can develop odata services in the backend and at the
same time you can also do front-end development in JavaScript with the help
of SAPUI5 libraries and you also have basic knowledge in one of the modules
like production planning or plant maintenance you have bright chances of
going for salaries 10 to 20 percent higher than the average salaries we
calculated in this video it's becoming more popular to carry out maintenance
activities and production order confirmation activities in mobile
devices with the help of fiori outsourcing is part of daily operations
and projects for most of the larger companies however not all SAP roles
can be outsourced the Data Protection Act of European Union makes it difficult
to outsource most of the SAP roles most of the consulting companies have daily
rates in the range of 800 to 1200 euros for their consultants most of the
experienced SAP consultants in Germany or freelancers they also have the daily
rates in the range of 800 to 1200 euros based on this I personally believe
outsourcing has very little effect on salaries of consultants in Germany most
of the German end customers expect consultants to speak German
however it's not impossible to get a consultant job with basic German there
are many large international companies in Germany with headquarters in US Japan
and many other countries outside of Germany even large international German
customers have frequently projects in English
in one of my other videos I have explained how to get those English
speaking jobs I personally believe German skills only
decide whether somebody is getting a job or not it's not a factor for salary
determination for example if you get a job in an international company as part
of a global team you don't need to go for a salary lower than the overage
because of basic German as the job doesn't require fluent German b2 level
of German is required for German speaking consultant roles but if you
have good SAP skills with the basic German you can always find a good job to
start with if you like to watch SAP specific videos please subscribe to this
channel please leave your opinion in the comment section I hope this information
was useful for you if you liked this video share with your friends thanks for watching .

Why Printing Trillions of Dollars May Not Cause Inflation – Central banks around the
world have injected money into the economy at a record
pace to try to fight a global recession triggered
by the coronavirus pandemic.
Just getting word
from the Federal Reserve. Bombshell announcement
from the Federal Reserve. It is an
absolutely historic week both in the terms of the speed
of Fed purchases and, of course, the magnitude. Since mid-March, the
Federal Reserve's balance sheet has ballooned from
4 trillion dollars to around 7 trillion dollars,
equal to about one third of the value
of the entire American economy. A new CNBC
survey showing that market participants expecting trillions
more in stimulus from both the central
bank and Congress. At the same time,
governments have enacted record amounts of fiscal stimulus
to boost economies stalled by the pandemic. The infusion of cash
into the financial system has renewed concerns that
inflation could surge. As Milton Friedman said,
inflation is always and everywhere a
monetary phenomenon. If you believe that, you
look at the central bank balance sheets exploding right
now and you say there's going to
be inflation. Supply shocks have driven up
prices for some goods over the past few months. Yet recent history suggests
inflation is more likely to stay low for
a long time as unemployment remains near record
high levels and consumer spending
is subdued. While this certainly is quite
a lot of disruption to the supply side of
the economy, that's likely to be dominated by the
huge hit to aggregate demand. So how will
trillions of dollars of economic stimulus affect
the outlook for inflation? Inflation refers to an increase
in the prices of goods or services
over time. One well-known measure of
inflation in the U.S. is called the Consumer
Price Index, or CPI. The CPI is about the
prices that we pay for services and goods and
housing and rent. Economists say some inflation
is healthy for the economy. When the
economy's growing, more consumers and businesses are
out spending money on goods and services. This increase in demand
results in higher prices. Demand is an important factor
in the outlook for inflation. Generally, when
unemployment is high and consumer demand is
weak, inflation is low. Another factor that affects
inflation is commodity prices. If oil prices rise
because there's a cut in production, gas prices
might increase too. Consumer and business
expectations about prices are another piece of
the inflation puzzle. If a lot of people expect
prices will rise in the future, they might spend
more now, ultimately causing inflation. The level
of actual inflation that we get will be
pretty heavily influenced by the inflation rate that
actors in the economies, households, businesses,
consumers, workers, investors expect
to prevail. Like many other central
banks around the world, the Fed targets a
2 percent yearly inflation rate. At that rate, a cup
of coffee that costs 2 dollars this year would cost
2 dollars and 4 cents next year, not quite
enough to break the bank. Central banks
adjust their policies normally by changing interest rates
to try to get to that 2
percent inflation level. You definitely want to
keep enough inflation so you can still have enough
space to raise and lower Fed funds over
the business side. Too much inflation isn't
a good thing either. As inflation rises, the money
that you hold today becomes less
valuable tomorrow. At a 15 percent inflation
rate, for example, your 2 dollar cup of coffee today
costs 2 dollars and 30 cents next year. Think of how that would
affect a bigger purchase like a car. A ten
thousand dollar purchase today would cost eleven thousand
five hundred dollars next year. When the
inflation rate is very high, it is very difficult
to make any calculation about saving. Inflation concerns for now
are to the downside. The risks are to the
downside, not to the upside. We see prices
moving down. That's because in a lot
of parts of the economy, people are
cutting prices. Lockdown's have already depressed
prices in the US as consumers stay home
and remain cautious about spending money in
an uncertain economy. The second biggest drop
in headline inflation since 1947. Energy commodities down 20
percent, with a 20 percent decline
in gasoline. Fuel oil down 15 percent. There have been pockets
of inflation in some areas, like groceries as
more people cook at home. Disruptions in global
trade from the virus have also raised prices
for goods like medical supplies. Still, these
supply shocks haven't offset overall
weak demand. If you're in the
average person's seat, we're talking about, you know,
grocery stores and that sort of thing. The idea
that there's going to be an outbreak of inflation, you
know, 4 percent, 5 percent, that is just
not on the horizon. Many economists and policymakers
expect wages will stay low as
unemployment remains high. Meanwhile, people are saving
instead of spending their cash out of fear
the economy could get worse. To try to boost the economy,
policymakers in Washington have pumped trillions of
dollars into the financial system in
recent months. Economic theory suggests all
this money printing could create the
risk of inflation. Economist Milton Friedman famously
said that if there's too much money
in the economy, chasing too few goods
prices will rise. When inflation was surging
in the 1980s, Fed Chairman Paul Volcker put
Friedman's theory to the test, and it worked. Volcker slowed the growth of
money going into the economy and raised interest
rates to tame inflation. But economists say
there's been a break in the link
between money creation and inflation in recent years
as the banking system has become more complex. The rise of the financial
system and the sort of the diversification of the
financial system is one of the reasons why
sort of the Milton Friedman view of the world
really is not as applicable, particularly in the
United States, as it was in
an earlier time. It's important to understand
that when the central bank prints money today, most
of it isn't in the form of physical
dollar bills. Instead, the Fed
creates electronic money. It uses that electronic cash
to buy assets and lend to banks, injecting
money into the banking system. To buy treasuries,
for example, the Fed uses so-called primary dealers,
a group of around two dozen big banks
and brokerage firms that trade bonds. What happens
when the Fed creates money? It strictly creates
central bank reserves. Those are held by
the banking system. The banks decide, you
know what what they're willing to lend out
into the economy. That means that even if the
Fed is pumping a lot of money into banks like
it is today, the money won't reach the hands
of consumers until banks lend it out. It is
true that money has been handed out directly to citizens
as part of the federal government's coronavirus
response, like the 1,200 dollar
stimulus checks. This cash infusion still
may not result in inflation. Most Americans needed
the checks to make day to day payments
to make up for lost income during the crisis. Not to go out and
spend lavishly on other purchases. I think of
them as more life preservers, trying to prevent
the economy from getting into a deeper hole
because of the Kovik crisis. And they don't
represent stimulus yet. Recent history suggests that
all the fiscal and monetary stimulus daring the
pandemic is unlikely to increase prices for
consumers when the Fed bought trillions of dollars
of assets after the 2008 financial crisis,
inflation never surged. After the Great Recession,
there was a conviction that all the fiscal
and monetary stimuli were going to result
in huge inflation. As a matter of
fact, a number investors, including some very famous
hedge funds, went to gold. Well what happened? Big deficits, but inflation
has come down. The experience of the last
decade is that central bank balance sheet expansion
certainly need not generate a period
of excess inflation. And in fact, even with a
big balance sheet to be hard to get the
inflation that you want. There are limits to what
history can teach us when it comes to understanding
the economic situation right now. Even if
the economic stimulus doesn't result in higher prices
for consumers, many say that inflation is showing up
in the prices of other assets like the stock
market or the housing market. One of the
most interesting questions that we have right now
is the difference between the price inflation that you
and I see at the grocery store or at the
gas pump or when we're buying something. That's one measure
of inflation. But another measure of
inflation that is also very important is
asset price inflation. In other words, what's
happening to the stock market and what's happening
to credit spreads? I think we're looking
at a very significant increases in asset
price inflation. Inflation expectations are
another risk. People start thinking all of
the money supply is increasing. Inflation is going
to be higher. Then expected inflation
becomes high. Then you start asking for
increases in wages and prices. And these expectations
become what we call self-fulfilling. In the long term,
factors like globalization, technology and aging populations
all play a role in consumer prices. A weaker U.S. dollar or
a backlash against global supply chains, which have
been disrupted during the pandemic, could
create inflation risks. If you were to seal
the borders and literally cut off any imports and then
embark on this huge monetary and fiscal stimuli,
yeah, they could they could
create inflation. There's one more big risk
to inflation, and it comes with nine
zeros attached. Record high public debt. Trillions of dollars in
economic stimulus during the pandemic have increased
government debt at a rapid pace. In recent years, some
economists have argued in favor of deficit spending
to fund public investment. Though many debate
what effect this could have on inflation. Because government debts are
set in fixed dollar amounts, higher inflation makes
it easier to pay off those debts. Some worry that politicians
might put pressure on central banks to chase
higher inflation to help finance the growing
national debt. We need not worry too much
about the size of the Fed's balance sheet. What we need to be focused
on is whether the Fed will at the appropriate
moment have both the judgment and the
institutional independence to raise interest rates, even
if that might conflict with some other interests,
for instance, the interest of the
government of today. .

Why can't we just print money to pay off debt? – Have you ever wondered why countries can't
just print more money to off their debts…
or to feed the homeless or fix unemployment,
or any other issue for that matter. Now, this may seem like a rather silly question,
but I think it may be one of those questions people might be a bit too embarrassed to ask,
but there's shortage of people wondering. The short answer can be summed up in just
one word… inflation. Inflation is defined as "a persistent, substantial rise in the
general level of prices related to an increase in the volume of money and resulting in the
loss of value of currency". But I'll get to that… first though, we need
to establish exactly what money… is. Now this may seem obvious, but something that's
important to know, is that money, has absolutely no… intrinsic value. What that means is
that money in itself has no actual value, it's only considered valuable because it can
buy things, but if you were stranded on a desert island, money would be totally useless.
Money only has value because we believe it has value. This is called the Tinkerbell Effect,
something I learned about from Vsauce. The Tinkerbell Effect is used to describe
something that only exists because we believe it exists.
And this is the case with money. Hypothetically speaking, if people suddenly started to believe
that money had no value… it wouldn't have any value.
Of course it wasn't always this way, money has been around for millennia, and when it
was first used it was in the form of commodity money. Things were traded that had actual
value and uses, like salt, spices, horses or weapons. As well as this precious metals
such as gold as silver, which technically don't have any intrinsic value either, but
due to their rarely are almost universally as currency.
Then we have representative money. Since carrying around everything you own can be difficult,
representative money makes more sense. Basically you give your gold to a bank and they keep
it safe for you, and in return they give you a piece of paper acknowledging that you own
that gold. These pieces of paper can therefore used as money as anyone can go and redeem
the gold at any time. But today, almost every country in the world
uses fiat money. Fiat money requires faith and trust in the government that their money
will have value. If we use a relatively young country as an
example, the United States has gone through all three monetary systems within 200 years.
In 1792, when the US stopped using European money. The Coinage Act of 1792 brought the
inception of the US dollar. The US dollar was originally in the form of commodity money
in the form of gold, silver and copper coins. The coins were actually made from real gold,
silver and copper, and the value of the metal that made the coins, were exactly equal to
their face value. The country then moved onto a mixture of commodity
and representative money with the 1900 Gold Standard Act. The government issued dollar
bills which could be exchanged for gold at any time.
Gold Standard is a type of representative money that money countries used at the time.
This was an effective way to accurately calculate the exchange rate between countries.
For example, if one gram of gold costs £1 in Britain and 2.50 in America, then you
can easily deduce that £1 equals 2.50. Gold coins were discontinued and the silver
was removed from the other coins, effectively ending commodity money.
In 1971, Richard Nixon officially abandoned the Gold Standard, and the US moved onto fiat
money. So money today isn't back by gold or anything
else of value for that matter. So back to the question at hand; basic economics
tells us that an increase in supply, results in a fall in demand and therefore a fall in
price. So the more money in the economy, the lower the value of each dollar. Meaning other
countries can purchase more dollars in exchange for their currency.
A second supply and demand graph shows why this leads to a rise in prices. More money
in the economy causes a shift in the demand curve for goods and services, but since this
isn't matched by in increase in economic output, prices must rise.
Look at it this way, if the government printed a million dollars and posted it to everyone
in the country, causing everyone to go out to buy a sports cars… but there's only a
finite number of sports in the country. If we use an analogy to demonstrate this…
imagine there's 4 people on a desert island, they each have 10 pieces of fruit each. All
fruits are considered equal in value. Now imagine they discover a whole forest of
apple trees. The nominal value of apples has increased because there's more of them, but
the actual value of an apple has gone down due to an increase in supply.
Therefore it now costs 10 apples for 1 banana since demand for apples is low, but high for
bananas. Just to clarify, in this analogy, the people
represent different countries, the fruits their respective currency, and the apples
tree is the printed money. But it's not only because of economic theory
that we know printing too much money is bad idea, there's several examples throughout
recent history. The most recently example is Zimbabwe. Who,
in 2008, suffered extremely high inflation due to printing money.
This was the result of some awful decisions by the president Robert Mugabe.
When the economy took a turn for the worse, Mugabe printed more money to pay government
expenditure. This caused inflation to skyrocket, and, in
mid-November 2008, Zimbabwe's inflation peaked at… actually wait hold on a second, first
I need to provide some context. Inflation in the United States is around 2%,
economists generally agree that inflation level around 1-3% are optimum. First-world
countries' inflation rates today range from 0-5%. A country is said to have enter hyperinflation
when their inflation levels exceed 50%. So… with that in mind, Zimbabwe's inflation,
at its peak, reached… 6.5… sextillion %. Or to put it another way… that number
has 22 digits. It got so bad that prices doubled every 24
hours. The government tried to solve the problem by printed more and more money with higher
and higher denominations. They also kept knocking zeroes off the end
by re-valuing the Zimbabwean dollar 3 times, going through 4 different types of currency
with 4 different ISO codes. Before the final re-denomination, they were
printing 100 trillion dollar bills. People were literally using wheelbarrows full
of cash to buy a loaf of bread. The government even made inflation illegal
at one point and people were actually arrested for raising prices.
In 2009, the Zimbabwean dollar was abandoned and to this day they still have no national
currency, their people use currencies such as the US dollar, the Pound Sterling, and
the Euro. Before the hyperinflation, the first Zimbabwean dollar was worth about 1.25 US
dollars. If that 100 trillion dollar bill was worth that exchange rate, that single
bill would be worth more money than there is in the entire world… twice.
But as ridiculous as this was, this is only considered to be the second worst inflation
in history, after Hungary in 1946. Although Zimbabwe's inflation peaked in Mid-November
of 2008, their overall highest monthly inflation was 79.6 billion %, whereas Hungary's highest
monthly inflation which took place in July 1946 was 41.9 quadrillion %. With prices doubling
every 15 hours. To put that into perspective, a country with
a healthy inflation level of around 3%, prices double every 23 years.
Their currency was called the pengo, and as inflation rose, the bil-pengo: short for billion
pengo. Which is actually one trillion pengo on the short-scale.
As well as the record for the highest monthly inflation, Hungary also holds the record for
the highest denomination banknote ever issued – the 100 million bil-pengo note. (ie – 100
million billion, or 100 quintillion). Which is 100 quintillion pengo on the short-scale.
1 milliard bil-pengo were printed but never issued.
In 1941, the exchange rate was about 5 pengo to 1 US dollar. In 1946, when the currency
was discontinued, things had gotten so out of hand, that if you took every single banknote
in the entire county, they would have a total value… of one tenth… of a US penny.
Hungary then switched the the forint, where 1 forint equalled 400 octillion pengos. That
number has 29 zeroes. So that's why government can't just print
money to pay off their debts, it does not end well.
It's also important to understand exactly what national debt is. National debt is much
more complicated than personal debt. It isn't simply a case of 'you owe people money'. Take
the country with the highest National Debt – the United States, that currently has around
17 trillion dollars of debt, and you're probably aware the country holds most US debt is…
China. Although that is true, it's somewhat misleading. Of the total debt, China only
has about 8%. Most of the debt is actually owned by the United States government itself,
but organisations such as Social Security or the Federal Reserve.
On top of this, a further 30% is owned by US citizens.And even though 8% of 17 trillion
is still a lot, China can't just knock on the door of the White House and demand 1.2
trillion dollars. It doesn't work like that. Basically, the US Department of the Treasury
issue treasury bonds. You can buy these bonds and the government will pay you interest on
that bond every year, then, once the bonds have matured, they'll buy the treasury bonds
back from you. Now, if a country gets into financial trouble,
it may have to default on its debt, which basically means you won't get your money back.
But the US is generally considered an extremely risk-free investment because the US dollar
is the most widely used and most trust-worthy currency in the world. It's even written into
the Constitution that the United States cannot default on its debt.
I'll leave you with this final thought and what I think is possibly the best way to sum
up why governments can't just print off unlimited amounts of money…
"If money grew on trees, it would be as valuable as leaves"
Thanks for watching! .