Topic: why the state does not print a lot of money? - page 31. (Read 2718 times)
There are standard to follows regarding printing much money. The Doe's and Don't are a must. Once it was violated then the consequences will be the next whether it is all about advantages or disadvantages. The volume of value is important.
Wait, isn't this the complete opposite? I think the U.S is actually printing more money than ever to stay afloat amidst its huge debt..
Because of this problem, we often wonder why Indonesia does not print a lot of money in order to pay all debts and finance the country as a whole, also for Indonesia to be free from poverty? But apparently, printing as much money as possible is not a solution to overcome the Indonesian economy.
why the state does not always make money, because if a country is printing too much money, the value of that currency will go down so it will cause more problems, that's why they prefer to owe rather than make money
Exactly right!
This calls for the inflation of the fiat currency.
When they will print more money then it will increase the supply of the fiat thus though the demand grows you will still have lot of supply. This way the circulation will keep on going in negative way. Thus it will do the demonetization of the currency.
Thats why they dont print more.
Yes you're right it is just like the law of demand and supply. So if they print more fiat then it will cause a big problem just like the value of it, it would be stable or the value would decrease. They control the Money runs in one country so that they can make fiat stable.
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
Simple, it will cause inflation.
Countries currency value is determined by the production of resources. Money cannot increase the production of resources but only gives spending capability.
In early 90's, Zimbabwe printed a lot of fiat money causing a hyper inflation. By 2007 do you know how much an egg cost in the country?
It's 1 billion.
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
The country prints a lot of money to pay off debts or from debt, it will add to the problem, I'm sure you already understand what inflation is. so if the state prints a lot of money it will affect the value of the currency itself, ie the decline in the value of the currency, what happens if we print a lot of money and the value of the FIAT becomes worthless. whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
Sorry to say this but don't you study economy at school? Of course if it's possible to print as much money as they can, and it has no bad effect, every country will already do that and make theirselves rich.
But no, there's something called inflation. If there are too many money in the society, the value will decrease. So it doesn't matter although you have many many money, if it doesn't have high value. Like zimbabwe for example. You can barely afford anything with a million dollar and such.
That's why they can't print as much money as they can, because it will decrease the value and make the money become meaningless.
But no, there's something called inflation. If there are too many money in the society, the value will decrease. So it doesn't matter although you have many many money, if it doesn't have high value. Like zimbabwe for example. You can barely afford anything with a million dollar and such.
That's why they can't print as much money as they can, because it will decrease the value and make the money become meaningless.
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
States can not produce unlimited money. In other words, each country has a gold stock. If a country generates too much money, the danger of inflation comes to the fore, during World War II we saw many examples for that issue, it's not that simple. whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
according to my knowledge, because the amount of money in circulation will cause inflation. It is an increase in the price of goods and a decline in the value of the currency. Therefore, the government prints money tailored to the needs. Not too much and not too little, to avoid inflation.
This is insanely hard and non understandable structure, so I will prefer to earn bitcoin and be in the shadow, lol. As for you?
If any state resort to printing of much of its currency and push it into circulation it will not be long the citizens of that country will begin to use sack bag to carry money to the market, because their will be plenty cash in circulation but with little or no value this is why states regulate the printing of cash strictly.
The concept here is just like the supply and demand of bitcoin which is I'm sure you have an idea of. If a country prints a lot of their local currency, then their supply will sky-rocket and it will be easier for their people to have a huge amount of it so, in a result, the value of its currency will decrease. But a different result will happen if the vice-versa of this is what they will do.
Actually I never knew why governments just print more money... it has been my question since i was a kid. Well thanks to this answer, I somehow get it. So the purpose for not printing too much money is to keep its value high, which I think is weird. Yes, for the logic of supply and demand applies, and I get the point. It is weird because it is creative and I like how the rule is applied here in the cryptocurrencies too.
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
It happened in the history of the Philippines where the Japanese conquered the island. In that era, there is a thing called mickey mouse money and it has a very low price. You need to have atleast one sack of money to buy a kilo of rice. That is because in that time, they have printed so much money that is not relative to the economic status of the country making the money almost useless. whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
why the state does not always make money, because if a country is printing too much money, the value of that currency will go down so it will cause more problems, that's why they prefer to owe rather than make money
I am not really knowledgeable when it comes to economic related news but I think they print enough number of money because they want to maintain the value like the other economy competitive countries that through the years maintains on top, I guess we should be all aware of that. Since Bitcoin has been legal in United States for me they see this an opportunity for them to lessen the printing since everyday people who uses Bitcoin is increasing in numbers.
It is impossible. There are certain rules and regulations, which don't allow just printing. Each coin should be supported by something. If everyone would be able to get as much money as he or she wanted it would be a chaos
That's the worst solution of poverty and debt that most of politicians think is right. Printing additional money will only cause more problems such as inflation (the value of money will go down). That's why Bitcoin has fixed supply. There wil be only about 21 million bitcoins and there is no way to create fake bitcoins (even forking won't do here much). That's also the reason why some governments don't like Bitcoin, they won't be able to print more money anymore without drawing much attention.
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
LMAO
I thought this question was discussed in primary school, wasn't it?
Everybody knows that money printing affects money value and leads to hyperinflation, I wonder why I have to explain this on serious bitcoin related forum
States do print money as a mechanism to control the economy (not control in the sense of dictatorial control, but management). When a state is in deep debt, or the economy needs a boost it isn't uncommon for central banks who have control over their own currency to commission a new amount of currency. This way, the value of the debt is decreased. The negative effects on consumers are managed or ignored, depending on the interests of the moment.
On the other hand, they don't always need to "print" money:
https://www.investopedia.com/terms/q/quantitative-easing.asp
They can just buy their own debt.
On the other hand, they don't always need to "print" money:
https://www.investopedia.com/terms/q/quantitative-easing.asp
They can just buy their own debt.
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
the reason behind that is that the value of their currency will drop. i believe it happened during a war and the currency price dropp. it is business as well.
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?
whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
This is what makes the fiat currency and crypto different from each other. In crypto you have your own choice to decide the number of coins to issue. In fiat the currency notes are backed by the reserves, usually gold is used in the world as a reserve. Those countries who take debts from the other world are actually not capable of collecting more reserves. whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
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