I have a question about how much currency can a country print. Some say it has to be backed by Gold. It seems that America has roughly 8000 tonnes of gold. So the total value is approx 3200 billion US$. The population of america is approx 32 billion. So if we print currency only up to 3200 billion US$ then each american citizen will get only 1000 US$ with him. It means currency has to be printed in many more multiples of gold value then what is the use of backing with gold. Instead why can't they print the currency based on population.
I also heard that US govt borrows the money from FED reserve. What is the need for it to borrow the money for interest when it can print the currecny itself.