Showing posts with label inflation. Show all posts
Showing posts with label inflation. Show all posts

Tuesday, November 26, 2019

Money finish oh!

Print more money! You know what? You do not even have to print it. Just take a piece of paper and write your own amount. That will be the new money. Do not play with economics, because it will mess with you. Right away.

Wednesday, August 21, 2019

The answer is blowing in the wind

L$205.1281/US$1.00 How many roads must a man walk down Before you call him a man? How many seas must a white dove sail Before she sleeps in the sand? Yes, and how many times must the cannonballs fly Before they're forever banned? The answer, my friend, is blowin' in the wind The answer is blowin' in the wind Yes, and how many years can a mountain exist Before it's washed to the sea? Yes, and how many years can some people exist Before they're allowed to be free? Yes, and how many times can a man turn his head And pretend that he just doesn't see? The answer, my friend, is blowin' in the wind The answer is blowin' in the wind Yes, and how many times must a man look up Before he can see the sky? Yes, and how many ears must one man have Before he can hear people cry? Yes, and how many deaths will it take 'til he knows That too many people have died? The answer, my friend, is blowin' in the wind The answer is blowin' in the wind Lyrics from Blowing in the wind, Bob Dylan.

Thursday, May 30, 2019

Supply of money

L$190.4475/US$1.00 When a country prints new bills, they are usually meant to replace older damaged notes. It is the job of the Central Bank to collect the old bills and destroy them and infuse the new ones. If you do not replace defunct currency, but just adding to money supply, you undermine the currency. We saw this in the Weimar Republic in the 1920s. In Zimbabwe, Mugabwe thought he was smart and started printing money to be able to pay govenment employees. In Venezuela today, Madouru is doing the same thing. In the short term, you may seem to solve a problem, but very shortly after, the currency is soon not worth more than what it actually is, paper. At this stage, when a country issues more money than it has backing for, you get increased inflation. Inflation is the increasing of prices, or really the decreasing of the value of the currency. In Weimar, Zimbabwe and Venezuela the printing of "new" money just kept on and on. This caused HYPERINFLATION. In the end, to buy a loaf of bread, the equivalent amount of money had to be carried in a wheelbarrow. Luckily, we are not here yet, but the tendencies seem to be ther. Wake up now, and smell the coffee.