3 ms·
> While I am not a big fan of austerity, one can ultimately only spend what you got. Wrong. You can always print money if you are the sovereign.
by venomsnake 11y ago
> While I am not a big fan of austerity, one can ultimately only spend what you got.
Wrong. You can always print money if you are the sovereign.
- _ph_ 11y agoPrinting money does not create value - by the same amount the money is printed, all previously existing money of that currency is being devaluated. This is of course a convenient way of getting rid of old debts, but not possible if you are in a currency union. Furthermore, you still have to pay back foreign debts, and there is a little chance that they accept your printed money.
- jpfr 11y agoPrinting money is like robbing those who still have cash as the currency is devalued. And it doesn't change a thing if you owe money in foreign currencies. Otherwise, Japan et al. would have long ramped up the printing presses.
- venomsnake 11y agoMost of the japan debt is in yen and they have been running the printing press in overdrive for the last 25 years or so.
- toomuchtodo 11y agoAs long as quality of life remains the same or improves, the value of a currency is meaningless (ie Japan).