plz delete
#2
Registered User
Join Date: Jun 2004
Location: Potomac Falls, VA
Posts: 2,472
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by dyhppy,Oct 17 2005, 05:28 PM
we always heard "nation's deficit" or "CA is 53 billion in debt"
they're the one's that print the money. how are they in debt, who did they barrow money from and what's the big deal if they don't get out of the debt?
they're the one's that print the money. how are they in debt, who did they barrow money from and what's the big deal if they don't get out of the debt?
But on your topic, You remember the Civil War? The South didn't just lose the war. They practically went bankrupt ... The reason is that they printed too much money. There's an economical balance that needs to be established when you print money. Its just like any other "price"/supply/demand chain ... If you increase supply, then it will drive price down. If you print too much money, the increased supply will devalue your money, basically deflating the value of the dollar and causing inflation of the price of goods and services.
Lets say for example, $30,000 will buy you an S2000. The US Government needs an S2000, so they print $30,000 ... they do this so much that money is now easy to obtain. Now instead of costing $30,000 an S2000 costs $60,000. But an average person still only makes $30,000 and now can't afford that car. Its bad practice in many ways beyond this simple example.