"Adam Corolla" wrote in message
news

"Hawke" wrote in message
...

I sure wish they would stop printing so much money. It's
getting to be worthless.

Are you joking, or do you really believe that the amount of money that's
printed affects its value?


Nope, I wasn't joking. The fact is the more money that a government prints
the less value it has. It takes more money to buy commodities because there
are more and more dollars chasing the same amount of goods. A good example
of this was in post WWI Germany where the inflation was so high that it was
reported that it took a wheelbarrow worth of money to buy a loaf of bread.
The German government tried to get out of its economic problems by printing
more and more money but all that did was create hyperinflation. Inflation
takes the value out of a dollar or whatever currency you are talking about.
The more scarce a dollar is the more it's worth and vice versa. Money is
just paper with ink on it. Money has no intrinsic value by itself. Much
psychology is involved. People have to believe that money is valuable for it
to be valuable. Once people see money as not being valuable they want more
and more of it to purchase the same thing they did a week ago and on and on.
Government creates inflation by printing too much money. Inflation makes the
dollar able to buy less and less so you need more and more dollars. It's
simple economics really. Right now we'd have tremendous inflation but since
we're buying everything overseas prices are staying low. For now.

Hawke