I've a question that I've been putting to friends in the appropriate fields and I'm starting to feel like an elephant's child. I suspect it's only the 1.5 m distancing that has stopped me feeling much warmer! I'm hoping some economically minded persons here can help.
I'm puzzled about the whole printing of money thing. Everyone is talking about how long it's going to take to pay back the current largesse but I'm not sure to whom we are indebted? The Government doesn't front the local bank and ask for a loan, it simply provides money as required. As I understand the concept, if it does this to excess, we get local inflation and the value of our currency drops.
Looking at the big picture, if production across the globe is plummeting and governments everywhere are frantically pumping out cash to keep the wheels turning, doesn't this cancel out the inflation and the devaluation? As I understand it, our dollars are simply numbers. There's no block of gold somewhere to back them up. A huge amount of our economy is services. It doesn't really matter whether they are performed or not, as long as the $'s keep circulating.;
I'm puzzled about the whole printing of money thing. Everyone is talking about how long it's going to take to pay back the current largesse but I'm not sure to whom we are indebted? The Government doesn't front the local bank and ask for a loan, it simply provides money as required. As I understand the concept, if it does this to excess, we get local inflation and the value of our currency drops.
Looking at the big picture, if production across the globe is plummeting and governments everywhere are frantically pumping out cash to keep the wheels turning, doesn't this cancel out the inflation and the devaluation? As I understand it, our dollars are simply numbers. There's no block of gold somewhere to back them up. A huge amount of our economy is services. It doesn't really matter whether they are performed or not, as long as the $'s keep circulating.;