Why can't we just print money... ?

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drewster1829
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Re: Why can't we just print money... ?

Postby drewster1829 » Tue Apr 20, 2010 9:34 am UTC

skellious wrote:To add to an illistration of what hyperinflation does to a country, in germany a women took bundles of money in a basket to buy essentials at a shop, she put the basket down to rest becuase it was heavy with all the money, and someone tipped the money out and ran off with the basket. the basket was worth more to them than the money! There were also cases of workers hurrying straight from being paid to the shop, becuase if you were at the back of the shop queue by the time you got to the counter your money bought 20% less than it did for those who had got to the front of the queue first. There were also reports of people burning bundles of notes as they were cheaper than buying coal or wood, and children using note bundles to build play forts and the like.


Yeah, and at least they had paper money...considering something like 98% (I think) of U.S. Dollars exist in electronic form, it might be kinda hard to burn them for heat...

The hyperinflation Germany experienced was primarily due to the government of the Weimar Republic printing currency to pay war reparations set out from the Treaty of Versailles for the First World War, right?
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skellious
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Re: Why can't we just print money... ?

Postby skellious » Tue Apr 20, 2010 10:00 pm UTC

yep, well that was one of the reasons anyway, another was the wall street crash. It certainly exacerbated things.
kerfuffleninja wrote: Minutes are the same length in Europe, right?

Iceman
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Re: Why can't we just print money... ?

Postby Iceman » Wed Apr 21, 2010 10:20 pm UTC

Yeah, and at least they had paper money...considering something like 98% (I think) of U.S. Dollars exist in electronic form, it might be kinda hard to burn them for heat...


It's approximately 10% in Currency

M2 Money Supply for the US is 8.2 Trillion, with 800 Million in Currency.

Judicator
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Re: Why can't we just print money... ?

Postby Judicator » Sun Apr 25, 2010 12:31 pm UTC

Yeah so first, it leads to inflation which is generally bad. Second, you're just replacing one tax with another - you say so yourself this is effectively a wealth tax. Finally, people would avoid keeping their wealth in cash, but instead put it in stock or natural resources, which won't get hit by inflation. The more people that do this, the more inflation you'll get when you keep printing money.

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drewster1829
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Re: Why can't we just print money... ?

Postby drewster1829 » Thu Apr 29, 2010 3:34 am UTC

Iceman wrote:
Yeah, and at least they had paper money...considering something like 98% (I think) of U.S. Dollars exist in electronic form, it might be kinda hard to burn them for heat...


It's approximately 10% in Currency

M2 Money Supply for the US is 8.2 Trillion, with 800 Million in Currency.


You mean $800 billion? :D

Edit: And I could try to save face by saying I was including M3, but that's not published anymore (and anyway it includes CDs and other time deposits).
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