why the state does not print a lot of money? - page 8.

leavolnhals

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Quote from: EVOS on April 30, 2018, 03:33:30 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?

Imagine being in a deserted island and when you see the food and money drifting in, you choose which one? Of course, food is the most valuable thing at the moment, giving you energy and waiting for rescue ships to arrive. So, should the state print money at that time? On the value of wealth, when wealth does not have value, it prints a lot of money is also not worth. Therefore, the larger the country's economic power is, the more wealth, from which the issuance of much money.

Acsirp

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The state or country does not print a lot of money , because if there is a lot of money production on a certain country , the price of goods , products in the market will goes high so there will an unbalance in the economy of the country.

andieoke

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Printing money in every country there are rules, if there is no rule, maybe in this World there is no country that has debt. we need to know that, the more countries print money the smaller the value of the currency if the exchange rate with foreign currency. that is the reason why the state does not print a lot of money.

mjaranzasu

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Quote from: jayhawk1 on July 24, 2018, 03:58:14 AM

A lot of people explained why it can't do that very detaily and gave great examples. I also would like to talk about why bitcoin should not be more than 21 million as well. Just like if usa prints dollars, if bitcoin allows more than 21 million, that would mean 1 bitcoin will worth less as well. Since there is a finite amount of resources (hello than os) we give it a more value than we would compared to higher limit. We need to take that example and apply it to countries to see why they can't. Easier approach to show why.

You are right, because even printing of money have its limits and it needs to follow the government's rules, same in cryptos, the lower the total volume means the higher the price because of fixed volume it have.

giarised

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Quote from: HertzCoin on July 16, 2018, 04:08:28 PM

Quote from: alyssa85 on July 16, 2018, 07:10:40 AM

Quote from: Nolimitz84 on July 15, 2018, 05:37:36 AM

Money should be provided with something.If the state will just print money without providing them with anything in the country will develop inflation.By and large, the country does not make sense to print a lot of money.It will not lead to anything good.

Inflation is a function of the quantity of money and the velocity of money.

If the velocity drops, the quantity must rise to prevent deflation. When velocity rises, the quantity must drop to prevent inflation.

At the moment the velocity is rising, which is why the Federal Reserve is raising rates and removing QE.

So, basically, both inflation and deflation happen solely because of the Fed who fiddles with the money supply. The Great Depression also happened because of the Fed, who started printing too much dollars in the 20s.

Actually the great depression was a compained by huge inflation and unemployment as well. Printing the money just makes the situation worse in such a case. If the state wants to fight the inflation, they should actually lower the prices by giving subsidies and using some other tolls. What matters is the GDP of a country. As long as the GDP is high, it is okay for inflation to occure because the living standards cannot be declined.

Stark_Naked9

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If the government prints money to pay debt or give to everyone, there will be hyperinflation.for instance, we have 1 million car at 5 $ each. at this moment the money supply will be 5 million. when the government provide triple the money supply, we have 1million car sold at 15$ each. but the number of goods is still the same. the fact that you have more money but if everything is expensive. your life is not better.

jayhawk1

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A lot of people explained why it can't do that very detaily and gave great examples. I also would like to talk about why bitcoin should not be more than 21 million as well. Just like if usa prints dollars, if bitcoin allows more than 21 million, that would mean 1 bitcoin will worth less as well. Since there is a finite amount of resources (hello than os) we give it a more value than we would compared to higher limit. We need to take that example and apply it to countries to see why they can't. Easier approach to show why.

slyfox

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Quote from: tronghai12345 on July 10, 2018, 11:32:59 PM

I think it is very simple. Money may cause inflation.
The more money that the goverment prints, the more likely a country has issues with inflation.
That is why if you go to a bank and you want to cash out a lot. They will not even have enough for you.

No, the reason a bank may not have enough money if a lot of people try to cash out is because of fractional reserve banking, for every 10 dollars that you put in a bank they keep one and they borrow the rest and then they create a receipt for those 9 dollars, that is called banking money and it is one of the main reasons why we have such a high rate of inflation.

Sanu Simon

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It is not possible for the government to print money on their own. It needs to take several things into consideration to print money, important thing is the reserve. In most of the cases gold is kept as the reserve asset and upon that value currencies were printed, printing on their own leads to inflation.

Arlette Foxsparkle

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Quote from: EVOS on April 30, 2018, 03:33:30 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?

This will not happen because if this will happen when state has printed a lot of money the value of all things that has a price will become too much higher. Because of the quantities of money that roaming around the states affects the circulation if economic system and it can be affect the development of the country.

Cling18

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Quote from: EVOS on April 30, 2018, 03:33:30 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?

Everything has it's limit and it is also stated in the law of money that there should such control for it. If US would print a lot of money, I think the supply and demand would have a trouble. There should always be a limit to balance everything specially in the world market.

luckyluigi

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Quote from: EVOS on April 30, 2018, 03:33:30 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?

I think they do, because how can United States be giving a loans for everybody in the world, without a printing tons of paper money? Also I think that dollar is not anymore backed with gold background.

Ava Duvall

jr. member

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Its a difficult process.Printing money could create more problems than solving problems. it creates creates inflation, and other process happen which are avoided by controlling the sum of printed money

Hkim21

jr. member

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printing a lot of money is only going to increase inflation in his country, the most important thing that needs to be improved is the education sector, if all the people in a country are educated then certainly it is a developed and independent country. Knowledge will be very useful especially in making money.

Baekhyun

newbie

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because money does not necessarily create welfare to its people, if its society is more educated maybe the country will be more advanced. so the conclusion that needs to be improved is not the printing of money but the education sector.
In addition, excessive printing of money can also reduce the value of national currency of the country.

gunhell16

hero member

Activity: 1666

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If the state print alot of money the demand and use will not grow.
many paper money will stay on wallets or banks.
the state wants to keep the circulation of fiat busy.

Man From The Future

sr. member

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Printing money on a large scale possibly can overcome the debt of the country, but this will be very bad for the country. If the country prints a lot of money that will happen is inflation. The price of goods will soar, while the value of money itself will go down even no longer valuable. If the state money is not worth anymore, then the state money will also have an impact on the value of money in the eyes of the world. Suppose we want to buy instant noodles alone we have to pay billions.

Burogh

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COVIR.IO

Quote from: Pan Troglodytes on July 16, 2018, 07:04:52 AM

Quote from: usahaali03 on April 30, 2018, 04:06:25 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

Actually they do print a lot of money. The money gets created in the form of credit that is issued by banks. And this is the root cause behind financial crashes we experienced and will experience. It is actually infeasible to describe it all in a short post, you should research it yourself (a good starting point would be searching for "Introduction to Austrian Economics" on youtube)

Central banks always print money but with good calculation. If central banks print money without good calculation, its affecting on our economic. Inflation rate will be rising and goods price will jump.

marlo1001

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I am always considering bad guys who are sitting up there in the governmental system are more wiser than I am economically so just let them do their business while we're doing our.

redsun114

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Quote from: marlo1001 on July 09, 2018, 07:54:44 AM

Simple, very simple. If the state begins to print a lot of money or create new banknotes, this will mean a default currency inside the country, a collapse, the country's economy will fall like a tower of paper at the wind.

Paper money needs a lot of money in its manufacturing it passes by several processes and after many steps the final steps and its printing also costs a lot so every government can not afford this and they look at its need in country. If they stop using this wastage of money and allow the cryptocurrency then they will save the money which they use in its manufacturing so this is a best solution for it.

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