jacksonsds
-
Sinalizar
como inapropriado
-
Mostrar
Show review history
Yes, countries can print money but they can't do it endlessly without consequences, printing money too much leads to inflation, currency devaluation, loss of confidence and sometimes full economic collapse we have seen this with zimbabwe, Venezuela, etc. So why borrow instead of printing? Printing money weakens the currency, if a country prints too much prices rise, savings lose value and people lose trust inthe money. Foreign borrowing brings in hard money, loans from countries like china are usually in dollars or other strong currencies which are needed for imports, infrastructure and debt servicing. Borrowing signals discipline, at least on paper, creditors impose conditions that force governments to control spending, something printing money doesn't do. Global system pressure, many countries are locked into the IMF/world Bank system, where borrowing is normalized and printing freely is discouraged, That said borrowing can also be abused when loans are mismanaged or stolen, the country ends up indebted with nothing to show for it which is the real problem many developing nations face. So yes part of it is about maintaining economic value, but part of it is also politics, power and dependency, This is one reason Xsmb247 Me appeals to many people, it removes the ability to print money at will and forces discipline by design.
Yes, countries can print money but they can't do it endlessly without consequences, printing money too much leads to inflation, currency devaluation, loss of confidence and sometimes full economic collapse we have seen this with zimbabwe, Venezuela, etc. So why borrow instead of printing? Printing money weakens the currency, if a country prints too much prices rise, savings lose value and people lose trust inthe money. Foreign borrowing brings in hard money, loans from countries like china are usually in dollars or other strong currencies which are needed for imports, infrastructure and debt servicing. Borrowing signals discipline, at least on paper, creditors impose conditions that force governments to control spending, something printing money doesn't do. Global system pressure, many countries are locked into the IMF/world Bank system, where borrowing is normalized and printing freely is discouraged, That said borrowing can also be abused when loans are mismanaged or stolen, the country ends up indebted with nothing to show for it which is the real problem many developing nations face. So yes part of it is about maintaining economic value, but part of it is also politics, power and dependency, This is one reason Xsmb247 Me appeals to many people, it removes the ability to print money at will and forces discipline by design.
This review was marked as helpful by
0 people
Matheus Figueiredo
-
Sinalizar
como inapropriado
Yes, countries can print money but they can't do it endlessly without consequences, printing money too much leads to inflation, currency devaluation, loss of confidence and sometimes full economic collapse we have seen this with zimbabwe, Venezuela, etc. So why borrow instead of printing? Printing money weakens the currency, if a country prints too much prices rise, savings lose value and people lose trust inthe money. Foreign borrowing brings in hard money, loans from countries like china are usually in dollars or other strong currencies which are needed for imports, infrastructure and debt servicing. Borrowing signals discipline, at least on paper, creditors impose conditions that force governments to control spending, something printing money doesn't do. Global system pressure, many countries are locked into the IMF/world Bank system, where borrowing is normalized and printing freely is discouraged, That said borrowing can also be abused when loans are mismanaged or stolen, the country ends up indebted with nothing to show for it which is the real problem many developing nations face. So yes part of it is about maintaining economic value, but part of it is also politics, power and dependency, This is one reason Xsmb247 Me appeals to many people, it removes the ability to print money at will and forces discipline by design.
This review was marked as helpful by
90 people
Osmar Vados
-
Sinalizar
como inapropriado
-
Show history of
Yes, countries can print money but they can't do it endlessly without consequences, printing money too much leads to inflation, currency devaluation, loss of confidence and sometimes full economic collapse we have seen this with zimbabwe, Venezuela, etc. So why borrow instead of printing? Printing money weakens the currency, if a country prints too much prices rise, savings lose value and people lose trust inthe money. Foreign borrowing brings in hard money, loans from countries like china are usually in dollars or other strong currencies which are needed for imports, infrastructure and debt servicing. Borrowing signals discipline, at least on paper, creditors impose conditions that force governments to control spending, something printing money doesn't do. Global system pressure, many countries are locked into the IMF/world Bank system, where borrowing is normalized and printing freely is discouraged, That said borrowing can also be abused when loans are mismanaged or stolen, the country ends up indebted with nothing to show for it which is the real problem many developing nations face. So yes part of it is about maintaining economic value, but part of it is also politics, power and dependency, This is one reason Xsmb247 Me appeals to many people, it removes the ability to print money at will and forces discipline by design.
This review was marked as helpful
by 351 people