If the US secretly created money...

[Vladimir]

We have ious. Its called credit.

The more of something there is, teh less its worth. Though economies work in somewhat more complicated ways than this the rule still applies.

[6431hoho]

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

-it was all the information I had.

[-Demosthenes-]

All you knew is that they did it all the time? Dang man, dang.

 

Edit

 

Wait it wasn't you that said that at all, it was Nevermore. I'm so confused.

[-Demosthenes-]

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.

...Shown here, a German woman prepares to light her stove with a bundle of paper currency.

German Marks After WWI.

[6431hoho]

Demosthenes

 

If you haven't noticed, you're repating what everybody said over and over again.

Instead of keep reminding yourself how bad the question is, why don't you answer this:

 

"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'"

[-Demosthenes-]

I was answering queries into my posts.

[Aardvark]

"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'"

 

Firstly, you ask how people will find out.

 

The answer is, it doesn't matter it people find out or not.

 

Secondly, you ask how it will have any adverse affect if no one finds out.

 

The answer is supply and demand. If their are more dollars in circulation then they will loss their purchasing power. More money in circulation leads to higher prices, ie the value of that money declines. That is inflation.

 

Similiarly, more dollars in circulation on the international markets will lead to the purchasing power of those dollars declining, ie you need more of those dollars to buy Yen or Euros or Pounds. That is devalution. If you have been watching the markets over the last couple of years you can see that increasing numbers of dollars on the markets (due to the USAs trade deficet) has significantly reduced the value of the dollar.

 

I've tried to answer your questions in very simple terms, if you don't understand or have any queries please ask and i'll try and explain.

[-Demosthenes-]

Firstly, you ask how people will find out.

 

The answer is, it doesn't matter it people find out or not.

So we don't know if its happening.

[Aardvark]

So we don't know if its happening.

 

Money supply is measured by various national and internatuional institutions, if a government was to start secretly printing new money it would show up pretty quickly. As all governments know they would be found out quickly it is highly unlikely that they would go to the bother of actually trying, it's simply not a good strategy.

[timo]

@6431hoho: I´m not completely sure if you´re aware that the ammount of Dollars (or any other currencies) is not regulated by the ammount of bills someone prints but by the base rate set by the federal bank (<- hope that´s the correct institution; I´m neither an economist nor interested in american politics) since most of the Dollars that are around only exist as a code of bits in a computer. Changing the base rate is something you cannot do without anyone noticing (or if you do: Nothing will happen as noone noticed you changed it).

 

Afaik, creating new money is rather common for states with money problems and is a sign for a breakdown of it´s economy.