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What happens when country prints and prints money?

 
 
Wed 29 Apr, 2020 07:58 am
The U.S. dollar is the basis of international trade. What happens when it prints and prints money?
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Type: Question • Score: 3 • Views: 1,463 • Replies: 13
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BillRM
 
  1  
Wed 29 Apr, 2020 08:09 am
@peacecrusader888,
peacecrusader888 wrote:

The U.S. dollar is the basis of international trade. What happens when it prints and prints money?


When you do not increase the money supply under such conditions existing now you risk having another great depression.

In fact see the history of the great depression where the Republican control congress at the time block increasing the money supply to the point that the depression drag on and on and only the needs of gearing up for WW2 at last ended the depression.

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mark noble
 
  0  
Wed 29 Apr, 2020 09:44 am
@peacecrusader888,
Now, Happens.
Today is the consequence of yesterday.
Have a Lovely Day
peacecrusader888
 
  0  
Sun 12 Jul, 2020 05:31 pm
@mark noble,
Quote:
@peacecrusader888,
Now, Happens.
Today is the consequence of yesterday.
Have a Lovely Day.


What do you mean?
BillRM
 
  1  
Sun 12 Jul, 2020 05:49 pm
Well during the run up to WW2 the government printing billions to rearmed ended the remains of the great depression that was until then was still hanging on.
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mark noble
 
  -1  
Mon 13 Jul, 2020 08:15 am
@peacecrusader888,
Question - 'What happens when country prints and prints money?'

Answer - 'Now' Happens.
'Today' is the Consequence of 'Yesterday'.

Have a lovely Day
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peacecrusader888
 
  -1  
Mon 3 Aug, 2020 09:24 pm
which countries print and print money?
nacredambition
 
  1  
Tue 4 Aug, 2020 04:46 am
@peacecrusader888,
Quote:
which countries print and print money?


too busy with qe to print
0 Replies
 
Teufel
 
  0  
Tue 4 Aug, 2020 05:48 am
@peacecrusader888,
Modern currency is of course notional, all world currencies now are FIAT currencies ... in effect they are a 'promise to pay' which is backed up by the word of the issuing authority, not as it was in the past, being representative of gold stocks held. The 'Gold Standard' was dropped because it held back trade.

The more currency that is printed, the less each unit is individually worth. Because the issuing authority most often, such as at present with the US, has not increased output, it is merely creating greater money flow.

This process can lead to Hyper Inflation, essentially where the value of the currency plummets, inflation is in Millions/Billions/Trillions of % a year not the 3, 4 or even 8%.

I'd suggest you read up about Germany 1921-1924 and Argentina in the late 1990's early 2000's to see the effects of that. Hyper Inflation does not happen by accident, it is a mechanism used by the establishment to kill off debt at the expense of the masses, their life style and their savings/pensions. It is clearly created, it is not an 'accident'.

The US has an extremely over inflated (sic) view of itself and it's currency which all began around 1917 .... The fiscal hegemony which the US enjoyed from around 1918 to the early 2000's is gone ... It started to sag in the 19070's but was finally made dead and buried by the 2008 collapse.

Whilst many 3rd world countries do use the $US as their black market currency that is now historical in nature. However since the Renminbi has become fully tradeable and of course there is the ÔéČuro, the $US has lost much fiscal power just as the US has lost comparable trade.

As a headline for the masses and example the US is 'fighting China' ... The reality check is that China already owns much of the US fiscal system and not a little of the actual land mass.

The basic bottom line is if a country expands it's money flow to reflect an increase in productivity, then it is all good ....... If it is as an initial step to momentarily quell inflationary pressures, it soon creates a situation where a lack of confidence in the currency and surrounding economy triggers severe inflationary pressures.

Too many people in the USA seem unable to grasp that the USA is now a post industrial entity ... It used to import vast amounts of raw materials and then sell that out as vast levels of finished manufactured goods.

Now it exports raw materials and buys in finished goods ... This is where all the unemployment, drug abuse, crime in general and so many other negative social traits began and are multiplying for the USA.

America, just like the UK which is also post industrial, cannot be made 'great again' because manufacturing is no longer as it was 50 years ago and within the next 50 years it is estimated that 80% of all present manual labour/service industry/manufacturing tasks of today's economy, will be wholly completed by Ai and AGi (Artificial General intelligence).

The future for the masses is therefore one of UBI (Universal Basic Income) which is a non-means tested wage replacement benefit to all adults, working or not. This of course opens a vast can of worms starting with "If these people do not produce and are economically inactive; why do we need them? Why are they breeding?"

If yourself or anyone is actually interested ... Then you would need to read many books regarding economics, sociology and psychology. It is all in there. The next century is going to be extremely tough for the masses, country immaterial.

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cicerone imposter
 
  2  
Tue 30 Mar, 2021 04:22 pm
@peacecrusader888,
They have more money in circulation.
roger
 
  1  
Tue 30 Mar, 2021 05:21 pm
@cicerone imposter,
Yes, and there is no corresponding increase in goods and services to spend it on.

My state, New Mexico, is allowing restaurants to be open at 50% capacity. One is at 25% and the other is doing take out orders only. Both because they can't hire enough servers. It may be that unemployment compensation is paying better than restaurants can afford. I can't project how this will end, but it isn't looking good.
cicerone imposter
 
  1  
Tue 30 Mar, 2021 05:34 pm
@roger,
I think the same dynamics is playing out throughout our country and elsewhere. People needs jobs and income vs the need to keep people safe and healthy. No easy solutions. It seems the travel industry is showing some growth, but I'm sticking close to home until the CDC and travel consultants tell us it's safe to travel. No more long distance driving.
0 Replies
 
Carthorse
 
  -1  
Sun 11 Apr, 2021 06:05 pm
@peacecrusader888,
Nothing necessarily. Countries have printed to a level that lead to problems, but they also have increased money supply without being particularly hurt.
BillRM
 
  1  
Tue 13 Apr, 2021 12:56 pm
@Carthorse,
Carthorse wrote:

Nothing necessarily. Countries have printed to a level that lead to problems, but they also have increased money supply without being particularly hurt.


The great depression was also keep going years beyond need due to not pumping up the money supple until the run up to WW2.
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