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Am sure Japan can do that also since they have their own currency and can print plenty of money. One person mentioned some numbers however, such as 2500 Yuan p
by Ardit20 16y ago
Am sure Japan can do that also since they have their own currency and can print plenty of money.
One person mentioned some numbers however, such as 2500 Yuan per hour. I am sure that figure one day was 25 Youan, but inflate and inflate, some zeros have been added.
I guess however having prices go up also, such that say bread is 1000 Yuan you do not get real inflation if you print slowly. But, I doubt anyone want to take a chance.
I would think also that it is not so easy and it is not really a get out of jail card. Money have value as long as they have power. They can print as much as they like, as it seems to be the case with Japan, but if prices go up accordingly, they would need to print more, and prices go up and print more and Germany 1930s or Zimbabwe 2007.
Paying off debt is a good policy, whether be it a country or individual. Saving is a good policy too.
- gaius 16y agoThe US can inflate ultimately because the USD is what oil and other major commodities is traded in. Anyone who needs to convert their currency into another to trade doesn't have that luxury. Not even the CHF, the EUR or the GBP.
- Ardit20 16y agoWhat they can't just start trading in Euro? Do they have some sort of contract or is there some sort of law which says you can trade oil only in dollars? I think if the dollar became a fonny currency people would switch quickly. It would for example not make any sense for a British man to trade in dollars if he gets say one pence for every dollar. Especially if by the next day it is worth 0.5 pence.
- gaius 16y agoWell there is a conspiracy theory that Iraq was invaded because it was on the verge of switching to EUR, and if it had OPEC would have followed and the dollar would have collapsed, taking the US economy with it.
- lsc 16y agoat the risk of sounding crazy, has there been a more rational explanation for our actions?
- deleted 16y ago[deleted]
- gaius 16y agoIf there was, I haven't heard it. The idea it was about securing access to oil is laughable. The oil isn't in Baghdad, the oilfields are out in the middle of nowhere. They could have been taken and held without going anywhere near the cities. Plus there is the small matter that we already know how to get oil from Middle Eastern countries... We buy it.