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Why doesn't everyone just print more money? Watch

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    (Original post by pinnacle)
    Interesting question. The problem is that money is created through debt: Govt does not create money. It borrows it, hence it will *never* get out of the debt spiral. The system is flawed.
    The central bank creates money by buying financial instruments in the market. The value is created elsewhere in the economy, in commodity production and circulation.
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    Please tell me you're a troll, because if not you have a fundamental misunderstanding when it comes to the concept of how money works.
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    Stop feeding the troll.
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    (Original post by TheGuy117)
    Investing in more machines to print money would pay/print for itself within days and think of how many people would gain jobs!
    Printing money does not equal to facilitating more people. It does not equal to increasing the resources at expense.
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    you sound like you vote labour. lol
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    No No No. You'd have to have suitcases full of money to buy a loaf of bread! Hyperinflation!
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    The first person I have known to have not studied Weimar Germany at least twice
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    Look at zimbabwe they printed more money and their currency was worthing nothing!
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    (Original post by lilmissshady)
    this is the question that's been nagging me since I was I don't know 2!!! I even decided to draw money once so that I could be rich, this is the ultimate question bruh!!!!!!!!!!!!!! why are third world countries third world when they can just print more money and become rich!!!!???? excuse me for being too naive but that's how my mind works!


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    What are they going to do with the money? No other country would accept it...and by just printing money you don't suddenly produce more goods.
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    The more money in circulation the less value it has. So if gold grew on peoples trees in the back garden, it would be worthless. The value of something is based on what we perceive its value to be. So if everyone was a millionaire the price of everything would have to go up to compensate. I dont understand why you dont just google hyperinflation as people have suggested?

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    (Original post by sorafdfs)
    What if you could make your own counterfeit yet legit looking money? Say someone made billions, to the value of the GDP even, and obviously didn't spend it all at once.
    It doesn't matter how many people spend the money it matters how much is spent. And on the velocity of money in the economy (i.e. how fast it changes hand).
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    (Original post by emi_sarb)
    You can't print more money but keep the value the same. Imagine you have a cake and you give out vouchers so everyone with a voucher can have a piece of your cake. At first you only give the vouchers to a few people so each voucher is worth a large slice of the cake. You then find more people wanting a slice of your cake so you print more vouchers and give one to everyone who wants one, however printing more vouchers has not made your cake any bigger, it has devalued your vouchers so each one is only worth a tiny crumb instead of a large slice.

    We only have limited resources and if we print more money prices will rise to keep expensive things expensive and cheap things cheap. It will also not pay off our debt as the interest rates will increase in line with inflation.
    I'm out or rep but remind me later to rep you.
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    The initial avalanche of self righteous bigoted answer shows TSR for what it truely is, this is actually a reasonable question eventhough the answer is obvious.
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    (Original post by SpicyStrawberry)
    The pound would become severely devalued against other currencies so we would never truly be able to repay our debts more easily, printing more money won't solve the problem.
    Most of the UK's debt is denominated in pound sterling, so actually we would be able to pay it off. In fact deflation and devaluation are the standard ways for a country to get out of a situation where it has too much debt. Those people who have savings are hit hard though.

    In fact it's pretty much what is happening at the moment - inflation is higher than interest rates.
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    Money only represents value - it is not value ipso facto.
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    (Original post by 419)
    The initial avalanche of self righteous bigoted answer shows TSR for what it truely is, this is actually a reasonable question eventhough the answer is obvious.
    Ah, but it's not a reasonable question - not for anyone over the age of 5.
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    There's this slight (ha) problem of a recession at the moment, and it would cause inflation.
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    (Original post by danny111)
    It doesn't matter how many people spend the money it matters how much is spent. And on the velocity of money in the economy (i.e. how fast it changes hand).
    Marx again

    "But the quantity of money in circulation is, as we have seen, determined not only by the sum of commodity-prices to be realised, but also by the velocity with which money circulates, i.e., the speed with which this realisation of prices is accomplished during a given period. If in one day one and the same sovereign makes ten purchases each consisting of a commodity worth one sovereign, so that it changes hands ten times, it transacts the same amount of business as ten sovereigns each of which makes only one circuit a day. [3] The velocity of circulation of gold can thus make up for its quantity: in other words, the stock of gold in circulation is determined not only by gold functioning as an equivalent alongside commodities, but also by the function it fulfils in the movement of the metamorphoses of commodities. But the velocity of currency can make up for its quantity only to a certain extent, for an endless number of separate purchases and sales take place simultaneously at any given moment."
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    (Original post by Caedus)
    Ah, but it's not a reasonable question - not for anyone over the age of 5.
    Been a bigot is not a really good trait fyi.
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    BY your logic if individuals can print as much money as they like then aren't you just creating a communist state.. Not because of Marxist beliefs but because if everyone can have as much as they like it would make everyone equal because what person whats they guy next door to them to have more money than them just because they could be bothered to print more. Productivity would would like decrease because people think they have more money than they do until hyperinflation kicks in where people are wheelbarrowing money just to buy a loaf of bread. We can only print as much money as gold we actually have which isn't a lot which is why our pound isn't strong.
 
 
 
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