Why can't local authorities just print the extra money that they need for buying local services?

    If central government cut local authority budgets by, say, 10%, why does the local authority not simply create that amount in the form of 'local money' which it uses to pay its workers (90% national currency, 10% local money) and which would be accepted by local businesses and which those businesses can use to pay 10% of their business tax?

    +1  Views: 2335 Answers: 4 Posted: 12 years ago

    4 Answers

    The thing is, when money is printed and sold to a government,  it is supposed to be paid for, with the same currency, including payment of interest. Since the interest money isn't printed, there's no way we can pay the Federal Reserve for all the money we owe. It doesn't exist. Now, add a new currency with nothing of collateral value to back it, and you've a whole lot of nothing.

    I wish I could print my own money! I would have a BALL!


    My son did some obviously fake money with a copy machine when he was 14. Wadded up a $10 and dropped it in a busy walkway. People would pick it up, shove it in their pockets, look around furtively...almost too funny.

    Money is the problem, not the solution to fairness and equality in community services.  

    Would you trust them they can't manage to bill people correctly

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