How The Economic Machine Works by Ray Dalio and Printing money practice

Xester

hero member

Activity: 994

Merit: 544

Quote from: uchalkql on March 06, 2017, 08:40:47 AM

It's a wonderful video with a very simple explanation:

https://www.youtube.com/watch?v=PHe0bXAIuk0

I think the practice of printing money seems so wrong, creating money from nothing.
I have a feeling that you are just avoiding dealing with the problem now, and it will be much worst in the future.

What do you think about this?

Do you think we could have a functioning/good economy without creating money out of thin air?

Printing of money is not that simple it follows some conditions that all countries have agreed itself. That agreement has been trusted to the central banks and that sets limit as to how many amount of money a certain country can produce. These printed money are backed up by gold in the treasury and also is limited by a certain rules. Thus a country cannot print too much money since aside from violating the rules it has a detrimental effect on the society.

uchalkql

jr. member

Activity: 49

Merit: 2

Quote from: davis196 on March 07, 2017, 01:53:18 AM

Quote from: uchalkql on March 06, 2017, 09:18:40 PM

Quote from: Hydrogen on March 06, 2017, 03:55:31 PM

Printing currency by itself isn't a negative.

What is bad is printing currency to overcompensate for inefficiencies in state budgetary management.

Thank you for your reply.
So when is it good to print money?

All the paper money printed by one country have to cover the value of all goods and services produced by that country for one year(the GDP).If more money are printed = inflation,if less money are printed =deflation.
It`s good to print money when there is deflation ,which means that the money supply isn`t enough.
Anyway,every central bank makes mistakes with the monetary policy and that`s why i`m a bitcoin fan.

Thank you davis196!

davis196

hero member

Activity: 3164

Merit: 937

Quote from: uchalkql on March 06, 2017, 09:18:40 PM

Quote from: Hydrogen on March 06, 2017, 03:55:31 PM

Printing currency by itself isn't a negative.

What is bad is printing currency to overcompensate for inefficiencies in state budgetary management.

Thank you for your reply.
So when is it good to print money?

All the paper money printed by one country have to cover the value of all goods and services produced by that country for one year(the GDP).If more money are printed = inflation,if less money are printed =deflation.
It`s good to print money when there is deflation ,which means that the money supply isn`t enough.
Anyway,every central bank makes mistakes with the monetary policy and that`s why i`m a bitcoin fan.

uchalkql

jr. member

Activity: 49

Merit: 2

Quote from: calkob on March 06, 2017, 04:55:52 PM

Great animation really enjoyed that, new most of it already but think this is a good video to show to friends and family who may want more info. in my opinion we are at the long term debt peak, about to go over the dip in the next few years. Undecided

Quote from: calkob on March 06, 2017, 04:55:52 PM

Great animation really enjoyed that, new most of it already but think this is a good video to show to friends and family who may want more info. in my opinion we are at the long term debt peak, about to go over the dip in the next few years. Undecided

Exactly. It's nice to share. I shared on Facebook, but I think nobody watched it. Grin

There is another video better than this one. I'll post in another topic because I think the video deserves it. =D

uchalkql

jr. member

Activity: 49

Merit: 2

Quote from: Hydrogen on March 06, 2017, 03:55:31 PM

Printing currency by itself isn't a negative.

What is bad is printing currency to overcompensate for inefficiencies in state budgetary management.

Thank you for your reply.
So when is it good to print money?

calkob

hero member

Activity: 1106

Merit: 521

Great animation really enjoyed that, new most of it already but think this is a good video to show to friends and family who may want more info. in my opinion we are at the long term debt peak, about to go over the dip in the next few years. Undecided

Cereberus

legendary

Activity: 910

Merit: 1000

The strategy of printing money doesn't work at all. The Federal Reserve used this strategy whenever they could and the result were not good. Since new chief in charge of Federal Reserve , Jannet Yellen the strategy has changed, she wants to have a stronger economy by raising interest rates. While this maybe bad in the future in the short term is extremely efficient. Printing money doesn't solve any problem. Economic reforms surely do.

Hydrogen

legendary

Activity: 2562

Merit: 1441

Printing currency by itself isn't a negative.

What is bad is printing currency to overcompensate for inefficiencies in state budgetary management.

Elon Musk and Space X accomplished far more than NASA despite having a budget a fraction of the size.

This is partly due to Space X having incentives to spend capital efficiently while state organizations like NASA have zero incentive to do so.

Excess currency printing is a mere symptom of socialist organizations like NASA failing to utilize revenue efficiently or effectively.

User365

sr. member

Activity: 434

Merit: 251

physics, mathematics and engineering

Well nice video,

but if you already have knowledge about economy, you won´t learn anything new,

furthermore the video could have been done in 10min instead of 31min

uchalkql

jr. member

Activity: 49

Merit: 2

It's a wonderful video with a very simple explanation:

https://www.youtube.com/watch?v=PHe0bXAIuk0

I think the practice of printing money seems so wrong, creating money from nothing.
I have a feeling that you are just avoiding dealing with the problem now, and it will be much worst in the future.

What do you think about this?

Do you think we could have a functioning/good economy without creating money out of thin air?

Topic: How The Economic Machine Works by Ray Dalio and Printing money practice (Read 456 times)