Topic: Question about inflation and debt. - page 4. (Read 816 times)

The money in everyone's pocket has no value. Look at the US, despite being the only producer of the leading currency, it owes trillions. Well, I ask you: can not government pay by producing as much as it wants? It can, but at the end the USD falls repeatedly below its value. Moreover, this result is such that in the US, this may even cause starvation in any other country with a small economy.

Lack of convenience and getting actual market value for the product we want to exchange let the fiat system to be evolved  so barter system is not the best way to solve.If a country want to pay the debt they have to increase their production and make profits for their government then the debt should be paid with that money to presrve their value of money,printing the money needed will simply cut off its total value for each unit.

Printing new money without being accompanied by withdrawing old money in the community will have negative implications because if too much money is in circulation, then the money will weaken and consequently inflation rises.

Based on the history of the barter system has failed, barter contains elements of exploitation, injustice and various economic diseases. A good barter is to exchange goods that have the same quality and value. but it will be very difficult because each individual wants to barter to complement each other's needs.

A good system is buying and selling, not bartering. To facilitate the buying and selling process we need money (real money with intrinsic value). But the concept of money here is really as a means of payment not "money demand for speculation". Do not hoard money because it directly means reducing money in circulation. Money must flow so the economy can spin.

In a trading system, money here functions as:

- Value storage media.
Sale and purchase occur in different types of goods, different goods needed "fair judge" for two parties to the transaction. This justice is demanded from the types of assets that last a long time because of the need for transactions that are continuous, the types of assets that last the most are mining (gold and silver).

- Standard measure of price value
When someone has trouble finding the value of similarities between different items, make gold and silver coins to measure it.

- Universal transaction media, money becomes a legal transaction medium that must be accepted by anyone in the world.

It's definitely not the best way to solve the problem, buddy. You may have seen the tragedy of Venezuela when they were insolvent and they had to print money to pay off their due debts, resulting in a persistent darkness. All have systems to control the amount of money a country has. The extra print will not hide anything, the natural impact will come if you abuse the printing of money. then people will have more and more money, they will buy more and stimulate demand, then surely inflation will rise to thousands of percent.

If a random country is in debt, is printing money a good way to pay it off at the expense of the citizens?

For example, lets say you owe an entity $100. If you print an extra $100 bill you pay off your debt, but unbeknownst to the entity the $100 that they lent you is now worth less.

Would the barter system be a good way of combating this?