The Continuous Printing of Money - page 6.

Twinkledoe

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Quote from: Harlot on May 21, 2019, 03:51:40 PM

Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

Nope, economic damges from overprinting money is instant and can be seen within a quarter or so, that is why we are seeing countries rise up woth their inflation on double digits faster compared to other countries taking another route with their money problems. I don't even know why governments opt out in this way where they think printing more money is some kind of band-aid solution in a crisis when what they are just doing is digging their grave deeper into the ground.

Maybe they are just giving a consolation for themselves. Seeing huge amount of paper money with very little value rather than nothing will make them feel better. But the ordinary people under them is the one suffering the real consequences of their actions.

Harlot

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Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

Nope, economic damges from overprinting money is instant and can be seen within a quarter or so, that is why we are seeing countries rise up woth their inflation on double digits faster compared to other countries taking another route with their money problems. I don't even know why governments opt out in this way where they think printing more money is some kind of band-aid solution in a crisis when what they are just doing is digging their grave deeper into the ground.

exstasie

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Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

In an interesting article, the author likened this quantitative easing to an additive drug even more potent than the usual marijuana or cocaine you can buy on the street. And now, politicians and bureaucrat are getting addictive into it as their easy fix to solve myriad of problems.

I think this points to the primary problem of representative politics. The people in power only care about retaining their power. That means maintaining the status quo and preventing the economy from immediately falling apart. It's the proverbial "kicking the can down the road." When elections are held every 2-4 years, you just need to perpetually band-aid the problems to keep your career intact. Legislators have no interest in rocking the boat when central banks and cabinet members are telling them the economy needs saving.

Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

It's also possible we're exaggerating the situation. The US government has engaged in QE-like policies ever since the Great Depression. Is it possible they have prevented another Depression from happening by doing so? What would have happened in 2008 if not for QE? It's hard to say......

Just playing devil's advocate. Wink

mindrust

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Venezuela and Argentina isn't the same as the US.

USD is reserve currency. Bolivar and Peso are not. Being a reserve currency has one advantage: The demand for it is infinite.

The demand for bolivar only comes from the people who live in Venezuela. But the demand for USD is coming from all over the world. It is endless demand.

When your product has endless number of buyers, the most sensible thing to do is, manufacturing it endlessly.

That's how USD manages to survive.

Is it going to go forever?

No. China and Russia are trying to find ways to use gold in international trades. Europe tried to make deals with Iran by using the EURO as a currency. It is happening everywhere. People are bored as fuck.

That's the only thing which can kill the USD: the diminishing demand.

What'll happen when the demand for USD is gone? Hyperinflation.

All those printed USD will be as powerful as a goddamn Venezuelan Bolivar.

What to do? Buy Gold and bitcoin. Or get rekt.

dothebeats

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Print more money, what could go wrong? The current generation and older ones wouldn't be able to live long enough to see the blunders of their past come out and get them. The band-aid solution offered by quantitative easing has always been the go-to of people who are actually not looking deeper into the problem and see a genuine solution. Also, the 'freedom' offered by fiat is also what makes these regulators get the hang of just printing money to soften the economy for a short while, and if that freedom isn't present, I don't think QE would even be a thing.

Gozie51

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Yes, some government see printing of more money as a final solution if they have tried out what they think they can do but definitely, with economic explanation, printing of more money into circulation will cause inflation. For me I think borrowing is usually better. Stronger economies hardly print money, I have observed this but I don't know how much my observation is correct.

Beerwizzard

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Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

We all know that eventually, printing of more money can result into disaster in the long-run.

No. Money printing either results as a disaster in a short term, just as we see this uncontrolled money printing in 3rd world countries, or it wouldn't have any serious threat in future. There is nothing bed in money printing until it is controlled and performed in a smart way. At least no one yet showed a stable working economy example with deflative currency that push prices of everything that was made in that country.

goaldigger

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Printing huge amount of money without considering inflation or any ither economic aspects will do nothing but bad effects. Its like the more you print money, the lesser the value it will. Law of supply and demand. If you have over supply of fiat that it cant stand its own value, you could buy a bread with a bucketful of your local currency. So government know all of this thats why they make it balance.

mirawantirinjana

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Does not printing money only worsen the economic condition of a country?
big inflation will occur and make their currencies no longer valuable.
how do they think about that? Huh

1Referee

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Quote from: elda34b on May 21, 2019, 08:11:52 AM

I hope Venezuela can recover, and other countries won't have the same problem.

We all hope for the best, but the governments in these countries don't ever undergo a drastic change in their fundamentals. Bad dictators get replaced by one of their buddies pretending to do things differently, then later on (when it's too late) people figure out that nothing has changed at all.

I would love to see them use Bitcoin as currency, but it's not even remotely capable of serving millions of people at the same time. The only option for now is to have a Bitcoin backed fiat currency, where there can't be more fiat units in circulations than satoshis in their reserves. The volatility shouldn't be that much of an issue with how their native fiat currency has gone through more of it than Bitcoin itself.

hugeblack

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The only beneficiary of such rapid solutions that will distort the economy in the future is the government and the biggest loser is the next generation.
This policy has immediate effects and is not useful to the financial return of individuals, especially those who work in government/inside jobs where the value of salaries will decline as the rise of price of goods and services.

Disconnecting gold and paper money was the beginning of such practices so unless there is a real link to gold or any other real assets, we will see this problem but will vary from country to country.

elda34b

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Fix your quote everyone, no need to keep quoting the image from OP.

Ten years ago my country faced the same thing. Our national currency depreciated in value and inflation was crazy high. It pushed people to act crazy and blame the minority for their problem. This is an inherent risk in the fiat system, if the government can't manage their inflation, disaster will happen. I hope Venezuela can recover, and other countries won't have the same problem. Let's use sound money, or at least, make sure the government don't do something stupid.

Ailmand

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Quote from: jrrsparkles on May 21, 2019, 04:38:47 AM

Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

When your economy is not doing well, the inflation is beyond control and the people are demanding for changes...what will you do? Of course, you will print billions and billions of paper money so you have the budget for anything you want and to solve many monetary problems your country is facing today and into the future. Now to make things spiced up and politically correct, you are going to call the printing of more money as "quantitative easing" a term pregnant with many possibilities, opportunities and threats depending on which of the equation you are located.

In an interesting article, the author likened this quantitative easing to an additive drug even more potent than the usual marijuana or cocaine you can buy on the street. And now, politicians and bureaucrat are getting addictive into it as their easy fix to solve myriad of problems.

Further Read: https://news.bitcoin.com/after-trillions-printed-under-qe-politicians-now-say-deficits-dont-matter/

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

Printing more and more money doesn't make any changes but the governments can hide themselves from doing this when the inflation is under control but places like venenzuela faced hyper inflation and it made their currency into nothing due to excessive printing and all the other countries are facing the same shit under silet and for the years.

Well, this resulted to the economic problem of Venezuela. Excessive printing of money leads to hyper inflation. I agree that there this action by central banks and government is not something new, but as long as the amount of money printed does not reflect the economic growth of a country this will only hurt the economy it self as it lessens the amount of the currency, which makes it's buying power lesser.

jrrsparkles

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Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

When your economy is not doing well, the inflation is beyond control and the people are demanding for changes...what will you do? Of course, you will print billions and billions of paper money so you have the budget for anything you want and to solve many monetary problems your country is facing today and into the future. Now to make things spiced up and politically correct, you are going to call the printing of more money as "quantitative easing" a term pregnant with many possibilities, opportunities and threats depending on which of the equation you are located.

In an interesting article, the author likened this quantitative easing to an additive drug even more potent than the usual marijuana or cocaine you can buy on the street. And now, politicians and bureaucrat are getting addictive into it as their easy fix to solve myriad of problems.

Further Read: https://news.bitcoin.com/after-trillions-printed-under-qe-politicians-now-say-deficits-dont-matter/

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

Printing more and more money doesn't make any changes but the governments can hide themselves from doing this when the inflation is under control but places like venenzuela faced hyper inflation and it made their currency into nothing due to excessive printing and all the other countries are facing the same shit under silet and for the years.

fiulpro

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Doubling the money would directly double up the prices , it means if you used to have x amount of money and now you have 2x and if you wanted to buy a new house and it's value was x before it will now be 2x , so in both cases you have nothing at last , now the bad part is the price , price in case 1 could be controlled and can go down but since inflation is on in case two the price will of course go up and will cause a lot of loss .

We aren't solving any problem we are just adding another that is inflation to it.

CryptoBry

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When your economy is not doing well, the inflation is beyond control and the people are demanding for changes...what will you do? Of course, you will print billions and billions of paper money so you have the budget for anything you want and to solve many monetary problems your country is facing today and into the future. Now to make things spiced up and politically correct, you are going to call the printing of more money as "quantitative easing" a term pregnant with many possibilities, opportunities and threats depending on which of the equation you are located.

In an interesting article, the author likened this quantitative easing to an additive drug even more potent than the usual marijuana or cocaine you can buy on the street. And now, politicians and bureaucrat are getting addictive into it as their easy fix to solve myriad of problems.

Further Read: https://news.bitcoin.com/after-trillions-printed-under-qe-politicians-now-say-deficits-dont-matter/

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

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