Your Qna     New Questions     About Qna
EQNA is a growing interactive people-knowledge network with more than 120,000 questions and 450,000 answers from over 55,000 members worldwide. With all friendly functions, EQNA will be a fun place to join, share and discover knowledge, an open net space allowing you to connect with other people having specialized knowledge or ones with same interests to yours. EQNA login features secured logins using Twitter and Facebook enable you to place questions without sharing your personal information to us. Lets get out and join our community today!
Ask a Question
768

When a country is running out of money why dont they just print more?

When a country is running out of money, why doesnt the head of a country just go to the mint and ask them to print some more notes and store them in a national safe of something?
XoXoHayleighXoXo:

Money 101: oversimplified. In the USA, when the Fed wants there to be more "money" in the economy they print some and reduce the interest rates they charge the lending institutions to borrow it from them. The lending institutions then reduce the rates the charge the consumer to borrow,so there's more borrowing and thus more "money in the economy. The whole process works in reverse when they want less "money" in the economy in order to control inflation which is the deterioration of what can be bought with a given amount of money.

Beauty:

By printing more money you decrease the value of the currency which creates inflation.

768:

or even hyperinflation as in the case of germany in 1923. oh they keep on printing money and then the mark was going down very quickly

Russ:

They do, sometimes- that is a major cause of inflation, and the erosion in the faith of the country, and it's currency.

Ed:

The matter of money creation is poorly understood. There is a common misconception that banks or governments create money. Governments only borrow money into existence from the banks. Banks can and do manage and redistribute money and wealth. Only people and natural resources represent potential wealth. Only people can, by their labor, produce useful wealth, which can be traded, either 1) directly by barter, 2) thru the use of currency, or 3) thru the creation of money. Remember, all people who buy or sell, i.e. are producers or consumers, are traders.
Money is created when a trader makes a commitment, by buying goods or services from other traders, to place goods or services in the marketplace of equal value in the future.
In making purchases, traders borrow against their future production if they do not currently have a trading surplus. Money is created as evidence of that debt. Putting goods and services back on the market repays the debt, and extinguishes the money. In other words, money is borrowed into existence, and is extinguished as the loan is repaid. The effective lender, or guarantor of a loan is all the traders who trade with the borrower‑‑in short‑‑the community; the market.
This is how money is created, and extinguished. The stability of a money issue, then, is only tangentially related to any assets that might guarantee it. .........;-)

Wangcai816:

not that simple

MizLiz:

How many QnA points did you get for that wisdom?

DogsRmylife:

5, same as everyone else who answers ;)

Baroque:

HA HA ha Greene 153 for some reason I got tears on that comment good one I'm not trying to be mean or anything but that was funny. Come on metalguy you gotta laugh at that one.

Obama4Prez:

They would love to do that ... But just imagine.. There will be no value for money if they do that ...

MizLiz:

Currency in the nations treasury says nothing about wealth.The leader goes to Mint,orders more money printed,..this ruins and devalues the currency.Hyperinflations and economic collapse results.Russia,did this,1890's.Russia does this,now.

768:

economic depression has been a big issue for many countries in the past including USA

MizLiz:

Are you saying that we are running out of US dollars?Are you saying that spring 2009 new President Clinton would say to print more dollars?Are you planning that,following Bush-Rice attacking China-Russia-Iran-North Korea 2008 summer,would require printing more dollars?

Ginger:

Greene, the president of the U.S. cannot order more money printed. The president must get the money from congress. If congres wants more money, they go to the FED. The Fed then prints and sells bonds to raise the money.

The money supply in the U.S. is controlled by the FED.

Ed:

oh no he did not say new president Clinton....oy vay........

MizLiz:

ginger,..the correct answers!!Good on you.Too many here misunderstand the workings of their government.Knowingly mistaken misunderstanding.

768:

who is president clinton?? I have never heard of him. How long ago was he the president

XoXoHayleighXoXo:

That's exactly what happens in a lot of countries. The end result has been things such as 400% to 1000% inflation and total collapse.

HANKSTER:

That's pretty much what we've been doing. For a while now when you consider the change of the money you hold from bills to notes. Meaning your dollar cant be redeemed for gold or silver anymore.

MizLiz:

On the investment and commodity markets,you could purchase precious metals.Or,coins collecting.Why is it valuable to have gold or silver,today?Everything is retailed,everything is transactions using debits and credits cards,or cash.Gold,if you purchase at investment or commodity market,you never get it sent to you.You have an account.

Ezshi:

it causes a ripple effect. there is nothing to back the money. So it may cause super-inflation or wartime conditions. Where the money isn't worth the paper it's pritned on or for coins the metal it's pressed with.

Answer:
Text ColorBackground Color
BoldItalicUnderline
LeftCenterRightJustify
Ordered ListBulleted List
IndentOutdent
Horizontal Rule
SubscriptSuperscript
HyperlinkImage
Design ModeDesign
Html ModeHtml
 

Top Question And Answer

  • Which is the best high school that offers gifted education in the country?
  • Do you need the words surge, bomb, attack and drill on your resume to run this country!
  • what foreign country bought west texas utilities in 2008 or 2007
  • Would you live in a Communist country?
  • How should a defeated country should be treated(germany in world war 1)?
  • DID YOU KNOW THAT ARMENIA WAS THE FIRST COUNTRY TO ADOPT CHRISTIANITY IN 301 A.D.?
  • Do you think American contractors give this country a black eye when they aren't held accountable?
  • Most dangerous country of the world?
  • If I was to visit your state/country, what city would you recommend I visit? Any particular reason?
  • has anyone out there heard of major bank takeovers by foreign country(s) that supposedly happened
  • Which country does the U.S. purchase most of its oil from?
  • if you have a job that is moving out of the country will you go with it?
  • How many Politicians do we have that is running our government that have had some substantial
  • im in charge of running a website that already exists (i know the pword) but i dont know how 2 login
  • running open office 1.1.0 failure to launch using for business how can I retreive info
  • running open office 1.1.0 failure to launch using for business how can I retreive info
  • how do you tell someone he is no longer capable of running his company and should let his son do it?
  • Is BTSI Network a real business or are they running a computer scam?
  • With the Reason "Refinery Capacity", Then Why aren't there cases of Stations Running Out of Gas ?
  • What causes vibration or wiggle of cars while running?
  • How much does it cost to put the lavender running lights around the bottom of a car? Anybody know?
  • I have a car that hasn't been driven in about five years. What should I do to get it safely running
  • How many miles per gallon does running the AC on a small car really knock off?
  • My 1992 acura vigor smells like burning oil ang smoke comes out of hood when car is running.how to f
  • I want to buy a bag,what is the baghttp:www.goyardreplicasale.com/Grade-Quality-Goyard-Saigon-Tote-Bag-PM-8941-Black/196/index.html
  • How is it:www.topreplicagears.com
  • Www.mokahandbags .com
  • Facebook new account opening form
  • Hom bhr0165301533Www.facebook.new account
  • Hom bhr0165301533
  • Hom bhr0165301533Www.facebook.new account
  • Hom bhr0165301533
  • how do I get mms message fro. mmsweb.iwireless.com
  • Find out how many cars of my model are registered
  • What would happen if a letter opens in the mail
  • Facebook new account open
  • Facebook New Account Creation
  • Facebook new account creation
  • locating a business that closed