4 ms·

I have seen what happens when elected politicians print money by popular demand. Hyperinflation, money are worth 3-5% of their value from a few years ago, econo

• watmough 17y ago
  Funnily enough, this is exactly what already happened to the USD. The current greenback is worth approx 4% of its level in the early part of the 20th C.
  • ntoshev 17y ago
    Ok, I didn't look up the numbers. The inflation in January 1997 alone was 380%. This means the stores (the ones that are still open) write new price tags during the day. I know this is inconceivable to most people, pretty much in the way falling real estate prices were inconceivable. You don't really understand it until you see it.
  • natrius 17y ago
    Nobody makes decisions based on what their money will be worth in 100 years. Low, stable inflation is a good thing. Depreciation to 4% over 100 years is about 3.3% each year. If inflation is stable, you can take that value into account when making contracts with others that deal with longer periods of time. Low inflation only really hurts people who stockpile cash for years. Don't do that.
• electromagnetic 17y ago
  For those who doubt the serious consequences of printing money, just look at Zimbabwe. When your own countries currency is no longer legal tender, it disadvantages the rich and not the poor. The poor in Zimbabwe barter, the rich use money, who really loses out here when the currency completely fails?
  • ntoshev 17y ago
    By Zimbabwean standards we are all rich I guess. Bartering (or even trade in a foreign currency) adds so much friction that all but the most necessary and unsophisticated transaction simply don't happen.