TwitterAn interesting question that is even more interesting these days with the credit crisis. Chat about it in the forum: why not just print more money?
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This would be feasible, and what may even happen. I was at the Economy Awareness Seminar 2008 with Dr. Pat Choate, and economist, and the question was asked, "Will our economy collapse?"
His answer was "No." He stated that we would do as you suggested and print more money, like we did in the 70s. He also stated that the problem with doing that is that the money is worth less.
If you back $100 with a brick of gold, then print another $100 backed by the same brick, the brick is not really worth $200. It would be in the US, but if the other countries are still backing their $100 with the same size brick as the one we are using to back $200, then our $200 is worth $100 to those countries.
There is a video, the second on the list, at EconomyInCrisis.org called "US economy collapsing" that explains how our money system works very well. You should take a look at it.
If you would like to watch Dr. Pat Choate at the seminar, go to http://youtube.com/economyincrisis