If the US secretly created money...

[6431hoho]

ok, I've been recently wondering...

everyone knows that US dollars are the most wanted currency in the world. Using this advantage, what if say US government secretly created money and used to buy in the market? It seems like a perfectly good idea.

[budullewraagh]

it's called inflation

[Nevermore]

It happens all the time.

[-Demosthenes-]

It seems rather mean to make such a censuring and bold statemen and then leave us hanging without much clarification. I was excited to find out how and when, and why you think that, but no, the sentence ends without so much as a noun, a verb, and a painfully teasing clause.

[mezarashi]

I believe that the US along with many other countries do. They will face their own consequences of course. According to economic theory, you can never get anything for free. The first and foremost effect is probably that of inflation. If you have too much of your money going around, it becomes worthless. Although as long as the US can continue to keep its GDP high, there will always be things to buy from the US, the money is still worth value. That's why the US is the only country in the world that does not need gold reserves. Everybody believes in US technology and US markets.

[ed84c]

It seems rather mean to make such a censuring and bold statemen and then leave us hanging without much clarification. I was excited to find out how and when, and why you think that, but no, the sentence ends without so much as a nown a verb, and a painfully teasing clause.

 

Happening is a verb.

 

 

I thought the US had gold reserves?

[atinymonkey]

everyone knows that US dollars are the most wanted currency in the world.

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Sorry. Do carry on.

[budullewraagh]

the dollar is remarkably weak, mind you. forgot to mention that

[ed84c]

i Think the Cyprian pound, Maltese Lira, And Pound Sterling are the strongest currencies in the world.

 

I guess as far as the British Pound is concerned its a throw back to when we were the richest country in the world, and 1/2 the world's land mass was in the empire?

[6431hoho]

weak or not does it make a lot of difference? It just floods other currencies. The most used currency is $US. I'm not talking about make money and currency goes down. I'm talking about currency staying until someone finds out.

[6431hoho]

It seems rather mean to make such a censuring and bold statemen and then leave us hanging without much clarification. I was excited to find out how and when, and why you think that, but no, the sentence ends without so much as a nown a verb, and a painfully teasing clause.

 

I just like to get to the point. Here is why how and when:

when: two days ago

how: thinking about currencies

why: waiting for the bus

[ed84c]

to what are those how why and when referring?

[Flareon]

Hoho, go grab any European history book, turn to the 20th century and read about German aftermaths of WW1. It led to one of the worst hyperinflations in recent history, in which people had to carry marks in suitcases. It doesn't answer your question entirely, but still an noteworthy part of history, I think.

[ed84c]

No it was in wheelbarrows, if wer're being pedantic.

[atinymonkey]

weak or not does it make a lot of difference?

The exchange rate makes all the difference. The US $ depreciates in value, which means it's worth less each month. Currency transfers that exisit (outside of the movies) are done from a weak currency to a stronger one.

 

It just floods other currencies.

I think your getting confused here. If you have $100 in a savings account, there is no store of cash with your name on it but a credit on your account. There isn't even 1% of US $ that exist in the physical sense, it's all on paper and tied into assets (such as the house your sitting in).

 

The most used currency is $US.

It's the 3rd largest amount of physical denomination, but it's not the currency of the stock exchange which is where most money is stored.

 

I'm not talking about make money and currency goes down. I'm talking about currency staying until someone finds out.

I don't understand what you mean by currency going down and staying, but if you just produced cash for a laugh where are you suggesting you introduce it? Would you give it out, buy products or invest? Until you use money, it does nothing.

[ed84c]

which is the currency of the stockmarket?

[Pangloss]

You think there's only one stock market?

[ed84c]

ah, good point. However to what was atinymonkey reffereing?

[6431hoho]

Hoho, go grab any European history book, turn to the 20th century and read about German aftermaths of WW1. It led to one of the worst hyperinflations in recent history, in which people had to carry marks in suitcases. It doesn't answer your question entirely, but still an noteworthy part of history, I think.

 

I know exacltly what happened. $US are different though.

 

I don't understand what you mean by currency going down and staying, but if you just produced cash for a laugh where are you suggesting you introduce it? Would you give it out, buy products or invest? Until you use money, it does nothing.

 

-What if the governemnt created $US secretely so that it won't inflate then went to bunch of countries and used it there? I'm sure it will benefit the US.

[ed84c]

well we dont do it secretly over here, we call it the royal mint.

 

Im pretty sure it would have adverse affects, otherwise they would have everybody doing it and charge them huge taxes.

[atinymonkey]

ah, good point. However to what was atinymonkey reffereing?

 

Well, the stock market as a force in Economics. So all of them really. I'm a bit tired, but what I meant was that if the US dollars had intrinsic value that placed it above other currency then all stock markets would trade in the dollar.

 

Although, to be honest I was just talking about the stock exchange not the stock market.

 

I know exacltly what happened. $US are different though.

No, they are the same. They are a promise to pay the bearer on demand the amount owed. Like an all purpose government cheque. As you can't promise to pay what you don't have, issuing bills for funds that don't exist will simply mean the treasury will be bankrupt.

 

Im pretty sure it would have adverse affects, otherwise they would have everybody doing it and charge them huge taxes.

 

Yes, Chancellor of the Exchequer ( Secretary of the Treasury ) has the job of balancing the books. Making sure that all the promisory notes have cash assets to back them up.

 

If you take the economic model down to the basics, which we really shouldn't, how long do you think you can go through life writing IOU's in exchange for goods and services? How long if it's known you don't have enough money to pay off the IOU's? That's why we can't just keep printing money

[6431hoho]

everone sounds as if the $US currency will go down which is not the case. Can someone actually just prove that how someone will find out or how it will to have adverse affect even if no one finds out.

 

Not something like "oh because they are not idiots" or "it will be obvious after time"

[Sayonara]

6431hoho, it would really help if you learned to use the quote feature.

[6431hoho]

I've just edited off

[-Demosthenes-]

Happening is a verb.

 

 

I thought the US had gold reserves?

"It [noun] happens [verb] all the time [adverbial clause]."

The point was that it was vague and really didn't give much information.

 

to what are those how why and when referring?

 

"It happens all the time."

I would like to know how the government does this and why and when, I thought it would be interesing.