Topic: Continuous Printing Of Money Out Of Thin Air Has Never Being The Answer (Read 488 times)

Printing money to cover the state budget could become a boomerang going forward. Apart from the assumption that the corona pandemic is not yet clear and the market's ability to absorb money is unclear. The current condition is that the solution is indeed to cut infrastructure development budgets and other projects to provide a safety net for the people, especially the lower classes who are most affected by the pandemic.

Print money referred to by followers of Modern Monetary Theory is printing money for funding productive projects. Examples of Germany printing money to finance the second world war or China that prints money to fund production. The government must be able to formulate sectors whose demand is relatively stable and can still be increased and can absorb a lot of labor. Because the effects caused by the pandemic caused the government to pour out extraordinary fiscal and monetary stimulus, the printing of money must use a more efficacious combination.

The government must spur an independent industrial sector where capital is in the form of the local currency, the raw material is domestic resources, its workers are also citizens, and zero imported products. If it can be absorbed by the export market, it will greatly help increase the country's foreign exchange, even for the fulfillment of domestic consumption, it is still effective in turning the economy around.

Printing money is not for the trading or service sector, it must be the production sector so that the supporting wing industry can also move apart from that which is different from the trade sector which is fortunately limited, and its increase is limited, the production factor can be 10-30 times the profit and increase.

I I'm responding based on what I have read in economics that money one of the ingredient of money is that it is generally accepted but for crypto, I'm sure it has many people not accepting it which answers your question.

Central banks of all the countries of the world have passed unlimited relaxation policy throughout the pandemic process and continue to print money continuously. As such, incredible inflation rates and many other economic problems are inevitable. If the central banks continue to print money unlimitedly, I think that huge economic problems are waiting for us, including the coming days, and the people will become poorer and lose their purchasing power day by day. In addition, since the process of recalling these coins, which are put on the market today, will take a long time, this will bring with it other economic problems. I think that unlimited money printing should be stopped and tight economic measures should be taken as soon as possible, I wish the money supply of central banks was limited.

I think we are at a time when the government really need to draft favorable cryptocurrency regulations. The industry is that matured already.

Considering the comments of economist Nill McKinnon, the US federal reserve has already taken very tough and large-scale steps to support the economy, which includes supporting small businesses, as well as the banking system and other sectors of the US economy, which to some extent may exclude the possibility of an increase in monetary masses to avoid global inflation.

Globalization requires every country to have quality human resources so as to produce high productivity and innovation so that the products produced can compete with other countries. If people cannot compete with foreign nationals in their own country, how can they compete with foreigners abroad. Product competition is commonplace and I believe that each country can survive, but what I worry more is competition at the individual level to get jobs. It is very ironic if in a country the unemployment rate is high but a lot of foreign workers are absorbed by the manufacturing industry in my country. Therefore, why each country can decide for themselves when their people are ready to face the era of globalization.

We take a simple example of Alipay's plans to operate in my country. An aggressive China wants to invest in the tourism sector with a narrative of strengthening the development and growth of my country's tourism. China built a hotel in Indonesia, China built a tour and travel company in Indonesia, China opened a restaurant, China opened a souvenir shop, China hired a guide from China and all payments through Alipay. Indeed, my country developed because of Chinese investment, but there was no growth in my country because the foreign exchange that entered my country was small to pay for overhead and vendor operations outside of Chinese companies, in other words, money only revolved in China even though the project or business was in my country.

The difference is thin between competition in globalization and exploitation. Globalization is not always sweet fruit. Globalization is also one that brings the spread of pandemics evenly throughout most of the world. Getting used to life manually is also needed at this time so that when the world that is online and connected is disconnected we are not too depressed. Globalization is not a necessity but only a choice.

Printing money to save the economy is fine but of course there's a lot of consequences because of this and maybe the inflation will rise up to those who print a lot of money. This is the disadvantage of Fiat currency because every year its value become more lessen which can't be stopped by anyone. This might not be the best answer but I know the economist knows this thing, well we are lucky to have bitcoin on our side. Cryptocurrency still need to grow, and maybe in the future this currency can help us on a calamity like this.

I understand your point of view, you fear that developed countries with more advanced and optimized production cycles will push retrograde industries of developing countries out of the market in an open competitive environment, but that’s the way of the progress. If someone adopts more advanced means of production, the ones sticking to traditional ways and trying to protect themselves with artificial restrictive measures are destined to an inevitable failure. Evolution consumes the weak. What’s the point of living in villages and digging in dirt in the era of technological singularity?

Decentralized blockchain is very different from globalization. In globalization, there is still a third entity that regulates whereas, in decentralized blockchain, there is no governing entity. We also have to realize that many of our brothers are not ready for technological advances let alone algorithms.

We know and understand and have used blockchain and bitcoin but we must be realistic that bitcoin cannot be a solution for all the world's economic problems and apart from that our society is not ready to accept total change. The ambition of globalization is more the ambition of the owner of money rather than the ambition of the middle class and the poor. Because globalization opens wide opportunities but also invites threats, especially for countries whose societies are still underdeveloped.

Even the trends that have arisen in my country have begun to compare to the better times of the dictatorship, although they have to be careful in talking but there is no hunger, development has also entered the villages, than in the current era of democracy, but many people die because they cannot eat. Peaceful globalization can only be realized if prosperity in the world is equal.

If inflation is already in the way which is more likely because some already have declared that were in the recession even cryptocurrencies aren't immune to the inflation. Yes it won't be directly affected by the supply of fiat but if the inflation will be too big its effects would come across all kinds of assets including cryptocurrencies which honestly speaking is getting its value in fiat equivalent. So even if BTC is valued at 9,500$ this time and during the high inflation rate those 9,500$ worth of BTC will have the same purchasing power as a fiat currency.

There is a recent tweet by Robert Kiyosaki about that issue where they say the printing trillions of money can become solution to revive the economy. That is also the reason why he encouraged the public to buy bitcoins than to stay and hold cash. I'm sure that there will be hyper inflation that will happen especially if they will keep printing trillions of money. We should remember how the law of supply and demand works in every types of economy.

Now is an honest time to shop for Bitcoin and Crypto wise people must attempt to buy and hold for an honest profit. However, thanks to the crisis within the country, the economy has been severely hampered, so it'll never be possible to print uninterrupted money out of nothingness at this point nobody will prioritize it and therefore the financial system of other countries as a leftist is far weaker.

And that instantly puts us back to square one

That is, whether the quarantine was any good in the first place. Just a few days ago a Nobel laureate in chemistry (Michael Levitt, to be exact) came up with the idea that it probably killed more people than saved (apart from ruining the economy). As he sees it, indiscriminate lockdown measures were a mistake because in all countries which were affected most by the coronavirus outbreak, the death total levels out at roughly the same fraction of the total population, no matter what measures had been taken to fight the pandemic. That essentially confirms that the quarantine was pretty much useless. In other words, the cure turned out worse than the disease


It works but does so very much according to the law of diminishing returns, and the response curve goes down abruptly after some point

The question is ....Do they have a choice? If they leave the pandemic to play out and people are laid off by the millions, then the economy will collapse and the Dollar will then also collapse as a global reserve currency. So they artificially manipulate the system to generate spending, so that the US economy and businesses can get a boost to survive.

It is a knife with two sharp ends, because left without help, the US economy will collapse... so by injecting that "help", it keeps the economy alive and the Dollar stable. 

I am currently fully into Cryptocurrency because the move by USA in printing of money will spell financial doom for the world economy and my nation won't be are from this economic virus. Wise people will buy bitcoin and other good Crypto project.

I really disagree with that, it is too obvious that if you print a lot of money, the money itself will become useless. It's value will become lower than you can imagine so it is really not the answer, no matter what rules and regulations you put to that. As what you've said ineffective, as you print a lot of money, the economy will not grow because of increase in the demand especially in the basic necessities if everyone can afford it.


Yes, this is right, but it seems that printing money is not the answer for the growth of an economy, proper manipulation and right regulations are the key for us to improve and grow our economy. The government should know the importance of money printing and they should tell it to the people so that they know what are the effects of it in the market.

I completely agree that second layer solutions are not the answer to the scalability issue. Lightning or any other payment channels network is simply a separate payment system, which is connected to Bitcoin, but is not a part of it. Moreover, its properties radically differ from the first layer, which will certainly become a problem for general audience, as common people will not be capable of understanding the difference correctly. If you want to read a bit more on the matter, you can look here, starting from page 120. Moreover, claiming that Lightning can solve the scalability issue is the same as claiming that fiat can solve it too - simply convert bitcoins into USD, perform any number of transactions you wish and buy bitcoins again in the end. How is it different from payment channels?


The matter of inflation is not that simple. During the 2008 crisis, the FED issued more than 4 trillion as bailouts, which surprisingly caused near-zero effect on the inflation rate (as a price index). BTW, inflation is not bad and some small rate should be always maintained to avoid a liquidity trap, which is one of the reasons for QE (or printing money) to be applied. Moreover, a liquidity trap and the subsequent deflationary spiral can be even more devastating than hyperinflation.


But don't you think that developing countries are such, because governments protect only a small fraction of their citizens, particularly elite groups? On the example of Singapore, we can see that developing countries do not stay long in such a state, once a person comes into power who actually cares about the citizens. I live in a developing country too and I embrace globalization despite any frightening effect, for I prefer any difficulties it can bring instead of living under the power of these scum in the government. Same with crypto - I would prefer an algorithmic decentralized system instead of scammers who fill their pockets at my expense.

The old model of finance is how things are moving even today and the government is not taking a look at other alternatives rather than printing money when there is a shortage and it will lead to inflation in the near future, but the problem is not solely in the US, most of Europe is following the same strategy for decades

The government will not be willing to back the currency with any commodity when the economy is struggling already and facing inflation and cryptocurrency is not a complete solution for the situation either.

Image when government will print more money and then purchase the commodity and then claim that the currency is backed by something  . These drastic changes should be taken when the economic situation is running smooth and not the verge of crisis.

Honestly, I would not even think about the global scale, because In any case, there are countries that will oppose cryptocurrencies, because this will oppose the economies of these countries, and in the future, may reduce tax revenues from the population.

Well, you are absolutely right about this but I doubt that this would help to cryptocurrency to get easily accepted in the society. Even this could be possible I don't think the said same manner would never be seen after all.