Message:

<p>[QUOTE=&quot;gboulton, post: 1285603, member: 27043&quot;]Spoken like a numismatist.&nbsp; *heh*</p><p><br /></p><p>So, for each new truck Ford makes, they need to charge less, since there&#039;s now more of them?</p><p><br /></p><p>That&#039;s the entire point.&nbsp; There is no fixed pie of money, since money is a store of value.&nbsp; Since value can be created where none existed before, money must also be able to be created where none existed before.</p><p><br /></p><p>Otherwise, increased production results in rampant DEflation....either prices of the newly produced goods must go down <b>simply by virtue of more existing</b>, or the value of the unit of money must go up.&nbsp; Either of those is detrimental to a large economy, both is lethal.</p><p><br /></p><p><br /></p><p><br /></p><p>You can&#039;t assert that they &quot;will&quot; or &quot;won&#039;t&quot; balance the overall money supply any more than I can.&nbsp; If they continue to print money at a hyper-inflationary rate, the denominations we&#039;re talking about here won&#039;t buy a stick of gum, and won&#039;t really matter.&nbsp; Again, see Zimbabwe.</p><p><br /></p><p>If they reduce or slow the creation of new money, then they quite easily could balance 2 bills for 1, or 5, etc.</p><p><br /></p><p>Point being, monetary policy and politics will dictate the money supply, not the denomination of particular notes.&nbsp; Once again, they are a RESULT of the money supply, not the cause.</p><p><br /></p><p><br /></p><p><br /></p><p>Seems a darn intelligent way if you ask me.&nbsp; Inflate the currency so the dollar is worth less than before, but still able to pay off your debt with old dollars.&nbsp; Bazinga!</p><p><br /></p><p>Debtors LOVE inflation for this very reason.</p><p><br /></p><p>You are, however, quite incorrect.&nbsp; The US government isn&#039;t &quot;paying off&quot; debt with new dollars.&nbsp; It&#039;s creating MORE debt.&nbsp; </p><p><br /></p><p><br /></p><p><br /></p><p>In general, we agree.&nbsp; The current culture and political landscape does not suggest, even for a moment, that this country or its leadership will find responsible ways of paying down debt and managing money any time soon...if ever.</p><p><br /></p><p><br /></p><p><br /></p><p>Sure, why not?&nbsp; Larger bills don&#039;t CAUSE any of these things, they are either A) Inconsequential to them or B) caused BY them.</p><p><br /></p><p>Let us presume, everything else aside, that the government decides to create $1,000,000 tomorrow.</p><p><br /></p><p>Will it really matter if it&#039;s 5,000 $200 bills, 2,000 $500 bills, 1,000 $1000 bills, or 1,000,000 $1 bills?&nbsp; If they decide to do it, they&#039;re going to do it.&nbsp; </p><p><br /></p><p>The government doesn&#039;t decide to print 100 of &quot;something&quot;, and then pick the denomination.&nbsp; They create some given amount of money supply, and then print currency or mint coins as needed to cover the tangible fraction of that money supply.</p><p><br /></p><p>The size of the bills simply doesn&#039;t matter.&nbsp; It&#039;s an ancillary RESULT, not cause, at most.</p><p><br /></p><p><br /></p><p><br /></p><p>Certainly not.&nbsp; Were it the cause an effect relationship you assert it is, I&#039;d agree with you.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in