Author: Yogesh

Billionaire Tells Americans to Prepare For 'Financial Ruin'   [Copy link] 中文

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Post time 2013-7-12 19:58:21 |Display all floors
{:soso_e181:}
I'm just here for the money

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Post time 2013-7-12 20:51:41 |Display all floors
verdane Post time: 2013-7-12 13:37
If it continues to print money the value of the dollar held by the creditor nations (such as China ...

It is not as simple as that. I feel there is some cache. I am surprised that a forum like this does not have enough bloggers/posters who can explain this.
If you ask me, I would love to make a simple analogy. Say, there is a village called "earth" and there are some 300-400 families living in it. There is one family who prints money which the village uses as a currency. Now please think about this scenario and tell me what will happen if the family printing money prints it whenever it wants to,  to take care of its requirement. How does that affect it and other villagers? Who loses, when and what?

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Post time 2013-7-12 21:59:23 |Display all floors
Yogesh Post time: 2013-7-12 20:51
It is not as simple as that. I feel there is some cache. I am surprised that a forum like this doe ...

I'm certainly not an economist or an expert! But historically when a given nation has gone on an excessive money printing exercise, the value of that money in comparison with other currencies tends to go down. It depends on how excessive it gets before you can consider it problematic (Wiemar republic?).

Within your village there would be several families that are printing their own money - anyone else using it would know if they are to buy goods using any currency then the currency that retains it's value would be the one to hold a supply of.

Families holding the currency that is being printed to excesses will find they can buy less because its worth less - and can not exchange it easily because no one wants it.

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Post time 2013-7-12 22:08:36 |Display all floors
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Roach Exterminator

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Post time 2013-7-12 22:19:35 |Display all floors
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Post time 2013-7-12 22:29:01 |Display all floors
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Post time 2013-7-12 22:29:39 |Display all floors
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