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If the government prints 1 trillion bolivars, then it has effectively stolen half of everybody else's money in the country. The value of the bolivar is half of
by TwoBit 10y ago
If the government prints 1 trillion bolivars, then it has effectively stolen half of everybody else's money in the country. The value of the bolivar is half of before, but it's now evenly split between the government and the people. So you can see why printing money is attractive to governments. It's like imposing a one time country-wide flat 50% tax on everybody, with no legislation required to do it.