Can Money Just Be Printed When Needed By The Government...

[Marbian]

Someone is trying to tell me, that the government can just print money if they need it. But as far as I know, this is false. Because money has a value, and if they just printed new money when needed it, the money will loose that value. Plus, if it was that easy, poor will be taken out the dictionary.

So, the purpose for the thread, is to prove me or the guy wrong. Can the government print money when needed?

[Martin]

I think it has to match the amount of gold we own or something like that. but yeah, it has to in keep with the value of what the country owns or something. They can't just go printing off money as they need it.

I tried photocopying a £10 note once and my photocopier knew I was doing it, I was like ":O"

[Nemo]

Yes they can but they wouldnt because that would, as you said, decrease the value. Hello hyper inflation.

[Marbian]

Undertaker why do you always turn threads into arguments?

Not everything is about money, if the Government wanted or needed money dont you think theyd just print some?

This is about morales, Gadaffi is a pig and you seem to think that we shouldnt get involved when he is killing his own citiizens.

Stop being pig ignorant.

---------- Post added 19-03-2011 at 06:55 PM ----------

Whoever -repd me at least have the balls to leave your name.

I reply on his profile;


Conceitex - Yesterday 10:48 PM
For my reply

http://www.habboxforum.com/showthrea...=691630&page=4

I'll just let you know, money has a value. That's why money can't just be printed, or it will loose that value.

He replies,


StefanWolves - Today 12:10 PM
Money cant be printed? Are you for real? You obviously live life with your head stuck in sand.

So, whose right?

[cocaine]

the government does print more money (via the banks) when they need to stimulate the economy, usually during a recession - its called quantitative easing. banks will use this extra money to buy government bonds in order to increase the money supply in an economy, basically speaking.

but if they print too much/print when not needed the supply increases and devalues the currency, causing inflation.

[Banana Pancakes]

There has to be a relation between the amount of gold in the treasury and the amount of money in circulation.

[Camy]

They can to a certain extent, they've had to in the recession.
Always found this interesting after learning about the hyper inflation in Germany.

[StefanWolves]

Wow you created a thread about this? You sir need a life.

My quote has already been justified because money can be printed. In terms of stimulating the economy or the amount of gold the country has. In fact they dont just 'print' money off, they could simply add a few '0s' onto the end of a banks finances for example.

---------- Post added 20-03-2011 at 07:18 PM ----------

Btw kid that's called inflation/deflation, go and rea about Zimbabwe where they need wheelbarrows full of money just to buy a loaf of bread.
Someone is trying to tell me, that the government can just print money if they need it. But as far as I know, this is false.[b] Because money has a value, and if they just printed new money when needed it, the money will loose that value[/i]. Plus, if it was that easy, poor will be taken out the dictionary.

So, the purpose for the thread, is to prove me or the guy wrong. Can the government print money when needed?

[-:Undertaker:-]

I think it has to match the amount of gold we own or something like that. but yeah, it has to in keep with the value of what the country owns or something. They can't just go printing off money as they need it.

I tried photocopying a £10 note once and my photocopier knew I was doing it, I was like ":O"

Not anymore, hence why the dollar and many other currencies are near collapse (see graph below).

But in relation to the thread, printing money doesn't get the government out of anything as everything is still the same just the currency devalues. I know what you mean though, the idea that David Cameron could just suddenly phone Mervyn King at the BoE and say "print me £7.9tn to wipe out the UK debts" is ridiculous. To add also, when a government uses 'QE' the people loose out - because if I have £5,000 in my bank, its then worth less than it was prior to the government printing money. It punishes savers, a form of government theft.

http://files.meetup.com/1191429/Value%20of%20US%20Dollar.jpg

As the graph shows, the U.S. dollar (and other currencies) have not got long left as they are becoming worthless. I know Congressman Ron Paul and others constantly bring this up warning of the coming collapse, because eventually the currency (not being backed by anything) will collapse. For a Habbo example, look at the Club Sofa - collapsed when it wasn't backed by traders who turned to coins instead.

So yes, it can be done sometimes - but it is very very foolish to do so.

[Marbian]

Wow you created a thread about this? You sir need a life.

My quote has already been justified because money can be printed. In terms of stimulating the economy or the amount of gold the country has. In fact they dont just 'print' money off, they could simply add a few '0s' onto the end of a banks finances for example.

---------- Post added 20-03-2011 at 07:18 PM ----------

Btw kid that's called inflation/deflation, go and rea about Zimbabwe where they need wheelbarrows full of money just to buy a loaf of bread.

You clearly pointed to me that you think the government can just print money to get out of things. Now that people have obviously agreed to what I was saying, you will try turning your story around. And no, I clearly corrected you, not rudely, that they can't just print money. You replied with the atitude, and making this thread to show how wrong you are thinking they can just print it to get out of stuff, doesn't make me sad. It's proving a point. Learn some respect, not everything has to be replied with attitude.

Plus it's a good topic, and it's bringing more threads to the forum and topics.

[AgnesIO]

Yes, they can. No, they shouldn't.

Printing more money simply causes hyper inflation (look at Zimbabwe). Or a famous photo from Germany..

https://lh5.googleusercontent.com/-uB8tmJBMnOE/TXKXl3Kji8I/AAAAAAAAA7U/7ElZqgLUzGE/s400/germany-+more+children+playing+w+money.jpg

[Chippiewill]

Someone is trying to tell me, that the government can just print money if they need it. But as far as I know, this is false. Because money has a value, and if they just printed new money when needed it, the money will loose that value. Plus, if it was that easy, poor will be taken out the dictionary.

So, the purpose for the thread, is to prove me or the guy wrong. Can the government print money when needed?
They cannot print money, that's silly, they can however print an IOU for the sum of money to the bearer of the IOU (or bank note). However if they have too many IOUs then the IOUs are spread around to much money and those IOUs are devalued.

[Conservative,]

I think the other replies should've answered your question, but if they did, the value of money would decrease because there is more of it - like if Habbo re-released thrones, their value would drop significantly because there would be more available. So the more money you print - the less it is worth.

And Dan, ALL currencies die eventually. The Pound will, the euro will, the dollar will. They all die because of inflation. For example, even in my relatively short lifetime inflation is apparent. For example, when I was about 6, Freddo's (the chocolate bar) used to be 10p. They are now 17p - an increase of 70% due to inflation - and the decrease in the value of money. Same with most chocolate bars - they used to be 50p, now 65 or 70p. Canned drinks used to be £1. Now they're £1.20. Etc.

So the answer is, yes they can, but the money would soon become worthless (like Zimbabwe, 1920's Germany etc.) but that does happen eventually anyway, only it is sped up if the Government decides to print loads off at once, hence why Labour's idea to print more money when they campaigned last year was absurd.

[Metric1]

no. it will **** with their economy and cause their dollar to be less valuable.

[Sharon]

Canned drinks used to be £1. Now they're £1.20. Etc.

what sort of cans are you drinking :S their only 50p a can, 70p at a stretch?

[Eoin247]

Yes, they can. No, they shouldn't.

Printing more money simply causes hyper inflation (look at Zimbabwe). Or a famous photo from Germany..

https://lh5.googleusercontent.com/-uB8tmJBMnOE/TXKXl3Kji8I/AAAAAAAAA7U/7ElZqgLUzGE/s400/germany-+more+children+playing+w+money.jpg

There are many more reasons to Zimbabwes inflation rate than just printing money. Also the deutchmark became worthless after world war one due to all the things the winning countries implicated on Germany.

[matt$]

what sort of cans are you drinking :S their only 50p a can, 70p at a stretch?

thats what i was thinking
OT: More money = less value like everything else in the world, the less of it the more it cost, printing money will just do the opposite.

[-:Undertaker:-]

And Dan, ALL currencies die eventually. The Pound will, the euro will, the dollar will. They all die because of inflation. For example, even in my relatively short lifetime inflation is apparent. For example, when I was about 6, Freddo's (the chocolate bar) used to be 10p. They are now 17p - an increase of 70% due to inflation - and the decrease in the value of money. Same with most chocolate bars - they used to be 50p, now 65 or 70p. Canned drinks used to be £1. Now they're £1.20. Etc.

Indeed which is what I mentioned, as they are no longer pegged to gold they will revert to their true value, worthless paper.

[Inseriousity.]

Yes, they could just print lots of money and give everyone loads but that's not how capitalism works. Capitalism needs poor people and rich people so they could but they won't. It's not ideal blah blah blah but until someone can suggest a more practical and workable solution, it's the best functioning system we have.

[StefanWolves]

So are we all agreed you can print money but it just devalues the currency?

defined the whole argument in one post.

Both of us were right and wrong, ok?

[ChickenFaces]

Isn't it the more money you print the less value it has or something like that?

[AgnesIO]

Isn't it the more money you print the less value it has or something like that?

We did discuss this.

Obviously this is the case. I would have thought people who play virtual worlds who are young would get a good grasp of this. Think about it, if EVERY player had unlimited credits, who would give a throne for 400? So the more of something there is (this works in MOST - NOT all cases) the less value it has to someone

---------- Post added 22-03-2011 at 10:34 PM ----------


There are many more reasons to Zimbabwes inflation rate than just printing money. Also the deutchmark became worthless after world war one due to all the things the winning countries implicated on Germany.

Ok smarty pants.

Germany tried to print more money to help the already bad situation.

[Eoin247]

We did discuss this.

Obviously this is the case. I would have thought people who play virtual worlds who are young would get a good grasp of this. Think about it, if EVERY player had unlimited credits, who would give a throne for 400? So the more of something there is (this works in MOST - NOT all cases) the less value it has to someone

---------- Post added 22-03-2011 at 10:34 PM ----------



Ok smarty pants.

Germany tried to print more money to help the already bad situation.

Everything i said was correct. Lose the sarcasm.

[Conservative,]

what sort of cans are you drinking :S their only 50p a can, 70p at a stretch?

I don't drink canned drinks but I guess it might be like big ones or something cos thats how much I see them for, but they've gone up regardless.