Why can't we print more money
why can't we print more money?
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why can't we print more money?
People keep saying inflation but we also created inflation. The whole system should be changed
Inflation. Its basic economics. Has never worked out for those who implement mass inflation for uses in international confidence in currency.
Prime example is the chinese yuan. While communist china can mess with their own value in currency to offset debts, internationally the trust in the yuan is really low considering chinas economic output. This makes doing international transactions harder and people are less likely to buy yuan to do money trading.
That doesnt mean inflation is all bad. Most goverments use minor inflation in their currency to increase people spending the money on goods instead of hoarding it as it will lose value for every day passing. That's why a dollar in the 1800s was worth a hell of alot more than a dollar now. Since we moved the dollar off the gold standard the only thing keeping the dollar somewhat stable is the confidence of people thinking the dollar is worth something imbuing it with value.
The current US population is in debt on Credit Cards something like $69 Billion dollars... That is all "printed" money.
The problem is that printing money without creating value only devalues the money.
Compare the cost of living from 1970 to now... (there was virtually no CC debt in 1970). The increase (inflation) is almost all due to printed money without creating value to match it.
The Federal Goverment has pumped billions of "printed" money into the economy the last year or so due to Covid-19. Have you noticed that all kinds of prices have gone up. Only part of that is due to real supply and demand issues created by Covid. The rest is just inflation from devaluing the dollar.
I dont think the dollar will collapse but there will be a definite permanent decrease in the value of the dollar, meaning people will have to pay more, goods will cost more. It all will balance out eventually when it comes to value. I'm just hoping dollars dont wind up as a value of the pesos when it come to numerical value.
I love how everyone posting is posting a unique perspective on the effects of inflation and how it effects values as a whole. Very interesting read!
Inflation,money itself is not a commodity it’s just a medium of exchange for goods and services,create more jobs,products and services and you’ll need to print more money to feed that without adequate goods and services printing more money will be worthless and even lead to problems(inflation,corruption etc) however there’s a question I’ve never fully understood if a country prints more money to pay off international debts and to import goods from other countries I don’t think there would be any problems at all maybe because I’m not an economist
Money is valuable specifically because it's rare (that's also why gold was used as money before fiat currency). It has to be maintained to stay rare otherwise the value of each individual dollar/euro/pound would decrease. So it'd be pointless having more money if the value of it decreases.
Pragmatically moving off the gold standard was good material wise. It frees up gold that would normally represent innate value to be used in electronics.
Confidence wise it's always good to have a good gold supply as a backup in the off chance your currency collapses.