America can just print money
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Recently I read in the newspaper than when America is in debt, they can simply just print out more money. America is 1 of the few countries who can simply just print out more money when they need it. Singapore cannot just print out more money when it is needed
Is this true?
If yes, how come america so special can keep on printing money when other countries like singapore cannot?
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this will weaken the currency
and this is the last thing they would wanna do now -
when something is in abundance, usually it loses its value.
when something is in limited quantity, it gains value. thats why you have the limited edition or collectors' item scams.
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Originally posted by xunni:
Recently I read in the newspaper than when America is in debt, they can simply just print out more money. America is 1 of the few countries who can simply just print out more money when they need it. Singapore cannot just print out more money when it is needed
Is this true?
If yes, how come america so special can keep on printing money when other countries like singapore cannot?
You want to pay for your food with stacks of cash?You: Auntie ah, Mee Siam, mai hiam.
Auntie: Orh.
You: Mee Siam how much huh?
Auntie: $78,500
*You takes out 7 stacks of 200 $50 notes, and another 170 $50 notes to pay for Mee Siam, mai hiam*
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us dollar don't just print money. they issue bonds.
us dollar is always in demand. that's why the us dollar always maintains its value.
Why is the dollar always in demand? reserve currency in most countries is mostly in the dollar.
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i think wif the coming of Obama, the dollar system will be revamped
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cos the world's reserve is predominantly in US Dollars....
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I believe the Americans ARE printing money for all their stimulus packages. Most the countries holding USD reserves I'd think are watching closely. The first one to start dumping the dollar would probably trigger the rest to do the same, thereby reducing the USD's value to nothing.
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zimbawe got that trillion dollar note somemore.
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Who say Singapore cannot print money?
Every country whose currency is "legal tender" can print money whimsically, it's called fiat currency.
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selling the us dollar would cause irreparable damage to the world's financial system.
no one with the right mind would dump the us dollar.
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When China unloads her US$2 trillion reserve, it will trigger the collapse of USD.
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Originally posted by Tempfiller:
When China unloads her US$2 trillion reserve, it will trigger the collapse of USD.
barter trade anyone?
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central banking anyone?
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it's the world's reserve currency. commodities like oil and gold, are priced in US dollars. Also, alot of countries hold US dollars/ US dollar denominated bonds as part of their reserve holdings and investors run to the USD whenever there's panic in the stock markets as well.
there's this really good book i've read. it's called the web of debt. i recommend it to anyone who's interested in the USD and how come it won't collapse even after they have thrown so much at their financial system.
Edit : i gave a wrong description of the book. the book rightfully describes how a private enterprise ( the federal reserve) created a system where they now control the money supply of the US, and by extension, the world. the USD and how come it won't collapse - i read it somewhere else. can't remember where.
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Originally posted by maxtor:
it's the world's reserve currency. commodities like oil and gold, are priced in US dollars. Also, alot of countries hold US dollars/ US dollar denominated bonds as part of their reserve holdings and investors run to the USD whenever there's panic in the stock markets as well.
there's this really good book i've read. it's called the web of debt. i super recommend it to anyone who's interested in the USD and how come it won't collapse even after they have thrown so much at their financial system.
This is not to diss the author or urself in anyway, but I've realized that anyone can read and write a book on how financial systems won't collapse because of this and that reason. More than often there are greater hidden problems or facts thats been realized by the people inside these financial institutions that the authors don't know about.
The entire shit that we've dug for ourselves wasn't totally unknown to all those inside the financial institutions or bank. They knew, and they all kept quiet about it. No one wants to be the one who bursts the bubble.
After the collapse of institutions such as Baer Stearns and Lehman, I think there is so much less certainty on the financial system globally, much less the US.
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Originally posted by Shotgun:
This is not to diss the author or urself in anyway, but I've realized that anyone can read and write a book on how financial systems won't collapse because of this and that reason. More than often there are greater hidden problems or facts thats been realized by the people inside these financial institutions that the authors don't know about.
The entire shit that we've dug for ourselves wasn't totally unknown to all those inside the financial institutions or bank. They knew, and they all kept quiet about it. No one wants to be the one who bursts the bubble.
After the collapse of institutions such as Baer Stearns and Lehman, I think there is so much less certainty on the financial system globally, much less the US.
definitely. everybody has their own point of view. unfortunately only time will tell who is more correct.
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Originally posted by xunni:
Recently I read in the newspaper than when America is in debt, they can simply just print out more money. America is 1 of the few countries who can simply just print out more money when they need it. Singapore cannot just print out more money when it is needed
Is this true?
If yes, how come america so special can keep on printing money when other countries like singapore cannot?
When you simply print more money without actually having earned it, it loses its value quickly.
As Nellie pointed out, inflation will set in very quickly when you do that.
This is precisely why ZImbabwe recently introduced a 100 trillion dollar note and they have an inflation rate of 89.7 sextillion percent.... they tried to get out of their economic woes by simply printing money.
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As far as I know, Singapore can print money as well. However, printing money will just accelerate inflation, as having more money chasing the same amount of goods will force people to raise prices. Think about it like this: If everyone got $100,000 tomorrow, would prices rise, fall, or stay the same? If all those people went out and spent just a portion of that $100,000, businessmen would realize that they need to raise prices before they run out of products to sell. Thus, you have inflation and the $100,000 that everyone received doesn't actually change the real wealth of anyone.
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Originally posted by xunni:
Recently I read in the newspaper than when America is in debt, they can simply just print out more money. America is 1 of the few countries who can simply just print out more money when they need it. Singapore cannot just print out more money when it is needed
Is this true?
If yes, how come america so special can keep on printing money when other countries like singapore cannot?
The simple answer is, America can do it because people will continue to hold on to US Dollars. If Singapore does it, people will flush the Singapore currency down the toilet.
People will continue to hold on to US dollars because they need it to buy, among other things, Crude Oil and they need US Dollars among other things, to do international business.
You should wake up sooner and realise that the USA is the world's superpower and Singapore under the PAP wil always be a coolie country.
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Andrew, people will soon dump the USD when they realize how worthless it has become. China is already looking to replace the USD with the Yuan as a reserve currency while Arab nations are seeking to create their own unified reserve currency. Without China and Arab Petrodollars, the USD will become next to worthless.
Under the helm of PAP, Singapore has been an economic superpower, considering how little land and natural resources it has. Singapore has higher per capita GDP than the USA.
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Originally posted by AJ Witoslawski:
Andrew, people will soon dump the USD when they realize how worthless it has become. China is already looking to replace the USD with the Yuan as a reserve currency while Arab nations are seeking to create their own unified reserve currency. Without China and Arab Petrodollars, the USD will become next to worthless.
Under the helm of PAP, Singapore has been an economic superpower, considering how little land and natural resources it has. Singapore has higher per capita GDP than the USA.
China can fall like the USSR anytime... nobody worth their money will trust a country (and its currency) that does not have a system to replace their governments, if a sicko (or senile cursed despot) comes into power.
PAP could do it because the British laid the foundations for 200 years but what the British had done, you can only "cash in" for a few decades and as you can see, it was obvious, from the late eighties, the PAP has damaged what the British did and we are now paying for it.
Let's just hope that Singapore does not need 200 years to repair the damge PAP has done (but if PAP remains in power... not only will there be no repairs, the damge will continue and become worse.)
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@AJ: SG is a economic superpower but it's mainly in financial services etc. these could easily dissapear overnight as they aren't tied down to country for any other reason than this is a central hub.
potentially malaysia could host the banks just as well as singapore -
Originally posted by AndrewPKYap:
China can fall like the USSR anytime... nobody worth their money will trust a country (and its currency) that does not have a system to replace their governments, if a sicko (or senile cursed despot) comes into power.
PAP could do it because the British laid the foundations for 200 years but what the British had done, you can only "cash in" for a few decades and as you can see, it was obvious, from the late eighties, the PAP has damaged what the British did and we are now paying for it.
Let's just hope that Singapore does not need 200 years to repair the damge PAP has done (but if PAP remains in power... not only will there be no repairs, the damge will continue and become worse.)
If SG is strong because of Britain, why did SG experience large growth AFTER independence?
PAP is the true reason why Singaporeans are some of the wealthiest people in the world.