How are dollars backed by the US government? Can the US government simply print more currency?

This bailout is going to send the US government into a deficit in the billions. Is the US government not in control of US currency? Can't they print more dollars? I know that the gold in Fort Knox is not sufficient to back all currency in circulation. How else is this mighty dollar backed?

The US government can easily print more dollars. As the gold standard has been already abandoned in 1970s, there is no requirement for backing all the currency issued.

But printing more dollars will lower the purchasing power of dollars. The exchange rate of US dollar will plunge downwards. The confidence which other countries have on US dollar will also fade away. So excessive printing will instead badly effect the economy through higher inflation.

Nothing and Yes. But why worry about deficit now? Bush left us with a HUGE deficit. The only problem with the deficit which our Li'l Bush criminal left us with bought us exactly nothing. Actually Bush's deficit bought us a war in Iraq and Afghanistan which may never end.

So yes - we're going to add to this deficit - but we're also going to rebuild the roads, powerlines and power plants. Bush never build a road or a sea wall or a power station or a power line - the money is just gone - gone into the pockets of his Super Rich friends.

And don't you wish YOU were Bush's rich friend? But if you went near Li'l Bush he'd have you shot like a dog. That's why he invented Blackwater.

Printing more US currency is an option, but it's more like a last-ditch plan.

You never want to print more money.

Printing more money would lower the value of the dollar.

Inflation would skyrocket.

Take what happened to Germany for an example.