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Can you make money with Yuwie?

Why can't the governments of indebted countries just make more money?

  • So my question really, is - Why would making more money (not PRINTING) in any way alter the price of the money i'm holding in my hand. Why can't a monetary system just involve exchanges of money belonging to individual people? Why can't a dollar be a damned dollar, and not be 1.5 or 0.9? Why can't indebted governments just create money to directly cover the debts? And better yet, why can't things that are very important just have inconsequential money thrown at them? Why do schoolchildren need to take envelopes home to get charity money to buy a goat for africa? Why can't the government just make money and send it to the goat owners? Why can't the government have infinite virtual money that literally can't be distributed or accessed by anyone save those appointed to distribute and access it? Please try and be easy to understand when answering. I'm not impressed by large vocabularies.

  • Answer:

    Money is created by the country that creates it. In the US the US Dollars is the currency and the US governmemtnis the monopoly supplier of said currency. You and I and businesses and the like are currency users. The US can create money and not have it affect inflation but it first must understand that our money is not back by gold or silver, can't even be traded for gold since 1971. The Dollar is valued by the productive capacity of the US economy and the balance being inflation. Now to what you state and others would fear lead us to hyperinflation and the like. US treasury debt is private sector savings. So grandmas savings are in treasury bonds along with pensions funds and various other huge investment groups that invest in treasuries for its security. Now if the federal government where to pay off the federal debt then these people would no longer be able to save in such a way as their would not be treasury bonds. On the flip side to your creating money idea. The federal government can legally print a $10 trillion dollar platinum coins. Have the treasury deposit this in the federal reserve to pay off $10 trillion in debt. The $10 trillion coins could stay in the vault and never enter the economy thus no inflation and no debt. Once people understand how our monetary system works then the possiblities show themselves.

Tom Bombadil at Yahoo! Answers Visit the source

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The answer is because the country will in turn experience Hyper Inflation. Hyper Inflation is where the price of things sky rockets to insane amounts. The reason for this happening is because there will be so much money in circulation. If everyone has so much money, then more money would be needed to buy goods, because the amount the dollar is worth will be worth less. It's a hard idea to wrap your head around, I know. I hope this helped though.

ApertureAce

Money is a repesentation of gold and silver. The reason we can't just make our own money is because there would be no value behind it. There is very little value behind it now. The reason this is important is because other contries have value behind there money. We cannot give them nothing for something.

Julia Clouden

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