Do you ever wonder why the goverment cant print as much money as they want
By heaven11
@heaven11 (1159)
United States
October 14, 2008 11:31pm CST
this may be a silly question no Iam not dumb I guess I was sleeping alot in school and missed this part
Anyways with all this stuff about the stocks and banks not ahving enough money and the goverment doing this bailout plan investing tax dollars into banks so they can lend to each other it made me wonder why cant the goverment just print that money off Iam not saying to print money and give to everybody to make us rich Iam saying print enough for some of this bailout plan and to pay the debt to china
Iam assuming the more they print makes the value go down heck I dont know maybe its the more money they print will make the rich richer and the poor poorer I dont know can someone explain
1 person likes this
5 responses
@AKRao24 (27424)
• India
15 Oct 08
LOL ! If things were that easier then no body in this World would have remained poor! The currency status of any money is determined by the amount of Gold that is lying with that country in the mint. Only that much amount of currency be printed by any country which is kept with them in mint.That mean it is nothing but the gold in the form of paper that is being used in the market. Gold is the only thing that is used in international market and natuarlly the higest priced currency will rule the market! So in International market by simply printing more money and giving your money won't serve the purpose here the exchange is always in the form of gold or the original currency of the country whom from the loan is availed. Because of this aspect the counterfeit currency in the market upsets the economy of a nation ! Hope you understood what I mean to imply! Thanks!
@don_naces (464)
• Philippines
16 Oct 08
I cannot give you exact details about that. When I was in college, our instructor is a manager of cash department in the "bank of all banks' in our country. She told us that printing much money as much as they want is not easy. They have to always check the reserves. I do not know what does she means. If they will print much money, it will cause trouble not only to the banks but also to the whole country.
@xfahctor (14118)
• Lancaster, New Hampshire
15 Oct 08
Your correct, technically, our money is not backed by anything except debt. Our money is technically not "currency", it is federal reserve notes and coins.It used to be backed by gold. but after the illegal creation of the federal reserve, we started drifting away from that. On December 31, 1970, President Richard Nixon signed into law an amendment to the Bank Holding Company Act, which, among other things, authorized the treasury to totally debase coins to a worthless value in non precious metal. Since the seventies, the unfettered issuance of debt money has continued to debase our currency more rapidly than ever before. The U.S. had broken records for the longest time that a nation's economy has been stable after moving away from the gold standard. Well, at least we were.
@JOIEMARVIC (2335)
• Philippines
15 Oct 08
Your actually right,the more mone printed,the lesser the value of money is.Thats why we considere money a valuable thing,because if it with no value,it will be common.Imagine if the government will print lots of money,the value of 500 pesos might go down to 50pesos.imagine how many 500 bills you will be bringing if you would shop for something worth 10,000?The government is monitoring the amount of money produced to be able to keep its value at the same level.
@loxion (1553)
• India
15 Oct 08
Is kinda like strange how the process of printing money works, i am not how expensive the paper which is used to print the money is but by the look of things it looks like is the mst expensive paper in the world.I am not sure if it is called money itself or what,maybe it is called "money which is used to print money".But i think that paper is expensive
