why the state does not print a lot of money? - page 32.

Ilegendph

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Thinking on the higher plane of existence.

Quote from: aoihs00 on April 30, 2018, 03:13:19 AM

Quote from: usahaali03 on April 30, 2018, 03:06:25 AM

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.

I believe that there is also factor that affects the value of currency like hold hoarding and gross domestic product. An example is japan, yen has a lesser value than a peso but as you can see japan is more successful compared to Philippines.

Argoo

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Quote from: EVOS on April 30, 2018, 02:33:30 AM

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?

Money in the state should be so much that their value is equal to the sum of the gold and foreign currency reserve plus the value of the country's gross domestic product. If the state will print more money, inflation will increase, that is, the real value of this money will fall.
Crypto currency is special and does not fall under these general rules. It is not secured by anything and is not regulated by anyone, therefore it has such high volatility. Based on the nature of the crypto currency, it is unlikely that its volatility will ever diminish. Quite the contrary. the higher the price of a crypto currency, the higher will be its volatility.

cryptokia

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Very soon whole world will move to a electronic and cryptomoney, and we will light a fire with those paper money we love so today Wink

Brangos99

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The reason, if the money is printed too much, then automatically the population will hold a lot of money. The amount of money in circulation will cause inflation. It is an increase in the price of goods and the decline in the value of the currency. The amount of money in circulation will cause the price to adjust, so the money becomes less valuable and less valuable because the amount is too much. Therefore, the government prints money tailored to the needs. Not too much and not too little, to avoid inflation.

East2011

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"Reserve Your Ledger at GYMLEDGER.COM"

The state can't print a lot of money because its not good for the economy of a country. They are controlling the amount of money that are circulating in a country.

green_fish

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A lot of paper money can have serious consequences!

The exchange rate falls, the local currency depreciates, the cost of the resident overseas consumption rises, the domestic price rises, the currency international influence also can be damaged, each country's speculator will sell the currency.

nazaididuan1

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A government created more of its own currency, and the value of its currency fell.

In a certain amount of time the total amount of social wealth is limited, more printing legal tender will cause price rise, inflation!

mimienamphine

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This will be the worse mistake that any country will ,make if they ever decide to print a lot of money.This will cause every citizen to have a lot of money like what happened in Zimbabwe some years ago where even simple commodities cost a lot of money.People had to pack sacks of money just to go and buy a piece of bread because money lost a lot of value in that country because the government printed a lot of money.

Semaj123

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Quote from: EVOS on April 30, 2018, 02:33:30 AM

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 will only create an imbalance to the economy and everything will fall into uncontrollable community. This is why they need to control the money in order to have a controllable society in terms of its goods and services.

Xardasim

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Quote from: EVOS on April 30, 2018, 02:33:30 AM

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?

If the money is printed a lot, then the price goes down. So, If there is more than anything (this could be everything), if the proposal is too much, it means the demand goes down accordingly.
If the supply of Bitcoin was unlimited, would the price be so expensive? or USD or Gold.

audaciousbeing

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Quote from: Mariksa on April 30, 2018, 03:32:53 PM

When I was younger I used to ask my parents the same question. But I understood this only when I grew up. As several people here already said, if the state prints a lot of money, this money will lose its value. Everything is just simple as that.

You see its not only about the money losing its value, its also about the cost of printing the money and that is why borrowing such money could be better off than printing outrightly. Printing money to maintain the normal standard and need of the economy alone costs a lot and this has to be supported with calculations to have the right balance. Considering the cost, you don't spend $100 to print $100 you surely spend more than that because as it changes hand, it loses the quality which would necessitate a recall to be reprinted. That is why every other means of carry out transactions without the use of cash is highly encouraged.

Chaki

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I think you bump your head on something hard while thinking about this thread, have your ever heard that on government sectors and agencies that have to follow order and protocols, you can just print all the way you want since approval from the higher position is a must and needed before creating and releasing series id money with their serial numbers. Go work with banks if you want to know more.

kicauklaten

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sorry, not intend to offend. However, from your question, I could argue that you are a person who has not been so familiar with the economy. If that is done then it is going to happen to inflation. This is the Foundation of the economy and you should know that.

Mariksa

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When I was younger I used to ask my parents the same question. But I understood this only when I grew up. As several people here already said, if the state prints a lot of money, this money will lose its value. Everything is just simple as that.

Hydrogen

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Quote from: EVOS on April 30, 2018, 02:33:30 AM

why the state does not print a lot of money?

Here's a scenario for you.

#1 A worker in the USA is paid $20 an hour at a time when 1,000,000,000,000 (1 trillion) US dollars are in circulation.
#2 The state prints a lot of money.
#3 The same worker mentioned in #1 is still being paid $20 but that $20 is worth far less as 10,000,000,000,000 (10 trillion) US dollars are now in circulation.

The more money governments print the more they devalue their own currency, the less buying power workers have. This can lead to economic and financial distress, especially in eras where wage gaps or stagnant pay become chronic issues over prolonged periods of time.

Its the same basic principle as litecoin's price being lower than many crypto currencies due to it having millions more coins in circulation. Fundamentals of scarcity, supply and demand. If there were fewer litecoin's in circulation, and if litecoin had a lower total coin cap, its value would be higher.

Its very difficult to get something for nothing or create value out of thin air as far as printing money goes. The value compensates by decreasing significantly.

slashz9

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why countries do not print money, because if too much money then the value of the country's currency will go down so they prefer to borrow to other countries. Just as with coins if too much supply but no interest then the value of the coin will go down

lelylely

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Quote from: EVOS on April 30, 2018, 02:33:30 AM

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?

Yes, if a country prints a lot of money and keeps printing as much as possible, the exchange rate in the country will decrease, money will become less valuable and the country's economy will be chaotic.

v3liana

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Quote from: EVOS on April 30, 2018, 02:33:30 AM

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?

its impact the value of money. I do think you got thing in high school. There is a lot reasons why they can print it cause it will make an inflation. I do think there a lot thing to consider before the goverment make more new money.

Kprawn

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Quote from: snkneo on April 30, 2018, 11:55:12 AM

If only things were that easy. Imagine that Bitcoin's total supply was 21,000,000,000,000. Do you think the value of each individual Bitcoin will be the same? Now if you print more money what do you think it's going to happen to that currency?

They will turn into another Zimbabwe :

https://www.telegraph.co.uk/news/worldnews/africaandindianocean/zimbabwe/2479937/Zimbabwes-worthless-100bn-notes-sell-for-huge-profit-on-eBay.html

Hyperinflation will be the end result : Hyperinflation occurs when a country experiences very high and usually accelerating

rates of inflation, rapidly eroding the real value of the local currency, and causing the population to minimize their holdings

of local money. Source : https://en.wikipedia.org/wiki/Hyperinflation

You cannot print yourself out of financial problems and most governments do not get that. Roll Eyes

snkneo

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If only things were that easy. Imagine that Bitcoin's total supply was 21,000,000,000,000. Do you think the value of each individual Bitcoin will be the same? Now if you print more money what do you think it's going to happen to that currency?

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