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<p>[QUOTE="tbudwiser, post: 1285569, member: 32774"]Okay, well heres why I believe this can cause major deflation of the US dollar if they print larger denomination bills:</p><p><br /></p><p>The government isn't going to go out of its way to slow down printing lower denomination bills when they start printing larger bills. Thus increasing the amount of US dollars in the world. This is the first step of deflation. And it's been happening since 2009, when the government started printing dollars specifically to pays its debts. We've seen minor deflation since this. So in easier to understand words; imagine what would happen to the gold market if suddenly one day aliens came down to earth with an infinite supply of gold and handed it over to us. Gold would drop down to nothing overnight. It's the scarcity of the precious metal that keeps its value up. Just as when you see the dollar start to drop, you usually (if your intelligent) keep any precious metals you may have, because those go up during any currency deflation. The reason is because everybody stops trading precious metals so sudden, thus decreasing the amount of gold on the market. This makes it go up even more, because gold starts becoming harder to aquire, because evrybodies keep their gold! Unfortunatetly, just as any currency in the world, the dollar obeys similar rules. You have/make more of something, it devaluizes. So, if making larger denomination bills "just for the convience" is going to put any more dollars in the world, I'd do and say what ever I could to try and put a stop to that.[/QUOTE]</p><p><br /></p>
[QUOTE="tbudwiser, post: 1285569, member: 32774"]Okay, well heres why I believe this can cause major deflation of the US dollar if they print larger denomination bills: The government isn't going to go out of its way to slow down printing lower denomination bills when they start printing larger bills. Thus increasing the amount of US dollars in the world. This is the first step of deflation. And it's been happening since 2009, when the government started printing dollars specifically to pays its debts. We've seen minor deflation since this. So in easier to understand words; imagine what would happen to the gold market if suddenly one day aliens came down to earth with an infinite supply of gold and handed it over to us. Gold would drop down to nothing overnight. It's the scarcity of the precious metal that keeps its value up. Just as when you see the dollar start to drop, you usually (if your intelligent) keep any precious metals you may have, because those go up during any currency deflation. The reason is because everybody stops trading precious metals so sudden, thus decreasing the amount of gold on the market. This makes it go up even more, because gold starts becoming harder to aquire, because evrybodies keep their gold! Unfortunatetly, just as any currency in the world, the dollar obeys similar rules. You have/make more of something, it devaluizes. So, if making larger denomination bills "just for the convience" is going to put any more dollars in the world, I'd do and say what ever I could to try and put a stop to that.[/QUOTE]
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