Why can t governments print an unlimited amount of money? - Jonathan Smith
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Date: 2021-07-15
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Comments and reviews: 10
Rob
In short: the money being printed doesn't have actual value.
In slightly more detail: This is why so many people are investing in precious metals, which have actual intrinsic value. The trouble with investing in anything based on earning interest is that there is no guarantee the interest rate will equal or exceed the inflation rate (simplified example: you invest in a 1-year bond at 3% APR, and inflation during that span hits 5%. Things that have intrinsic value will at least gain value equal to the inflation rate. Investing in precious metals is discouraged, however, because money's value depends in part on your belief that it still has value.
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In short: the money being printed doesn't have actual value.
In slightly more detail: This is why so many people are investing in precious metals, which have actual intrinsic value. The trouble with investing in anything based on earning interest is that there is no guarantee the interest rate will equal or exceed the inflation rate (simplified example: you invest in a 1-year bond at 3% APR, and inflation during that span hits 5%. Things that have intrinsic value will at least gain value equal to the inflation rate. Investing in precious metals is discouraged, however, because money's value depends in part on your belief that it still has value.
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Maracunator
I'm a Venezuelan expat, and I ought to be the bearer of bad news on this. That approach was already made by the Venezuelan Central Bank back in the early 2010s, by constantly getting debt bonds from PDVSA which they used as a means to justify printing more money (at least until the literal money printer in Maracay broke. That is one of the defining factors that played into creating the hyperinflation crisis over there.
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I'm a Venezuelan expat, and I ought to be the bearer of bad news on this. That approach was already made by the Venezuelan Central Bank back in the early 2010s, by constantly getting debt bonds from PDVSA which they used as a means to justify printing more money (at least until the literal money printer in Maracay broke. That is one of the defining factors that played into creating the hyperinflation crisis over there.
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Rick
QE will lead to the collapse of the dollar. The easy way to think about it is, if we don't have respect for our own dollar, why would anyone else have respect for it? QE or MMT or whatever else you want to call it is not new, and it always leads to currency collapse and eventual currency reset. Debt monetization is developing world nonsense, its very very scary that the US is doing it. It needs to stop.
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QE will lead to the collapse of the dollar. The easy way to think about it is, if we don't have respect for our own dollar, why would anyone else have respect for it? QE or MMT or whatever else you want to call it is not new, and it always leads to currency collapse and eventual currency reset. Debt monetization is developing world nonsense, its very very scary that the US is doing it. It needs to stop.
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Dan
Create money? I think you mean to dilute the value of real money in more worthless paper, In short nothing of value was created what we gain today by these actions we will have to pay later plus interest(a lot of it) and our sons will still have to pay that and our grandsons, ty government and fed
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Create money? I think you mean to dilute the value of real money in more worthless paper, In short nothing of value was created what we gain today by these actions we will have to pay later plus interest(a lot of it) and our sons will still have to pay that and our grandsons, ty government and fed
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dssobral97
All of this happens because the government can't regulate companies' interference on raising prices of their products, otherwise they would stop business in the country and generate a big crisis. What matters is more money, screw the people, even if there's a global crisis
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All of this happens because the government can't regulate companies' interference on raising prices of their products, otherwise they would stop business in the country and generate a big crisis. What matters is more money, screw the people, even if there's a global crisis
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Star
Yes the whole world has been and will be keep printing, but they called it Quantitative Easing, it will just result in hyper inflation that's it.
But the question is who made this biohazard weapon and spread them globally strategically?
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Yes the whole world has been and will be keep printing, but they called it Quantitative Easing, it will just result in hyper inflation that's it.
But the question is who made this biohazard weapon and spread them globally strategically?
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Hamza
More on the economy. As an economics graduate I still find alot of stuff confusing and unclear. We need to understand how the economy currently functions in order to move towards a better economic and social system.
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More on the economy. As an economics graduate I still find alot of stuff confusing and unclear. We need to understand how the economy currently functions in order to move towards a better economic and social system.
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DeMattMorency
The companies are just refusing to make more stuff. It's not like their expenses haven't risen just like ours.
Buying the promise of money as said money loses its value is a bad purchase.
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The companies are just refusing to make more stuff. It's not like their expenses haven't risen just like ours.
Buying the promise of money as said money loses its value is a bad purchase.
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Victor
Myth: Government creates jobs through public infrastructure projects
Fact: Government displaces actually people and resources away from other projects when it does infrastructure projects.
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Myth: Government creates jobs through public infrastructure projects
Fact: Government displaces actually people and resources away from other projects when it does infrastructure projects.
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Firewolf
I wish I could summon money out of thin air
I would use it to get more money then use that money to get more money
2. 5 billion years later
Then use that money to get money
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I wish I could summon money out of thin air
I would use it to get more money then use that money to get more money
2. 5 billion years later
Then use that money to get money
reply
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