How value the USD is, is it depend on how much gold you have and that is what I understood it. I recently travel to thailand and they said that the USA don't need to have gold and my thai friend said the United States can just print money as much as they want. Please I need your help. Thank you!!! I need some prove how this money things work.|||the USD is no longer backed by gold, and its value vs another country currency, depends on the relative strength of the country economy, trade surplus/deficit, balance of payments, etc. And, printing MORE money would only make the currency LESS value, e.g., if US govt doubles its money supply tomorrow, foreign suppliers would double the price to american buyers.|||Whoever you talked with doesn't have a clue. The gold standard in the USA went out DECADES ago. The gold standard meant that the American government would back the currency with gold - but an individual person didn't have to own gold.
Yes, we can print as much money as we want. But that is stupid. All it leads to is a devaluation of the currency and inflation (or even worse, hyper-inflation). That means your currency is essentially toilet paper. That's why the US (or any sensible country) doesn't print money at will.
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Some countries have printed more money than is needed. I will use the examples of Iraq and Iran. (Some African countries have done this as well). It takes 100 Iraqi dinars to equal 8 US pennies. It takes 1,000 Iran rials to equal 1 US penny. Iraq is just about to 're-denominate' their currency so that it doesn't look so bad to need llike 20,000 Iraqi dinars to buy a loaf of bread or a roll of toilet paper LOL :-)
With the 're-denominated' currency, you will 'only' need 2,000 Iraqi dinars for the same purchase of a product that costs $1 USD.
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