I know that printing money causes inflation, but what if we print it to pay back our debts?
For example, we have N dollars of debt to China. We can just print the N dollars and give it to China.
This way, we would not have more money in our country which would cause inflation, and we would not be giving from our own money, which would cause deflation. Also, China gets back the money U.S. owed it.
My guess is that it would cause some kind of weakening of the Chinese money against the USD, but could anyone verify that?