Quote from: dat.ho12492 on August 22, 2018, 02:33:30 PM

Quote from: yatogami on August 22, 2018, 01:34:15 PM

Quote from: EVOS on April 30, 2018, 07:33:30 AM

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?

Ideally, money should be supported by gold reserve and gross domestic product of the country. If there is too much printed money their value goes down, and inflation starts - and that can lead to collapse of the economy.

The collapse of an economy is very unlikely when the government takes measures to maintain the economy, the problem here is the devaluation of the currency, it will limit a lot of activities in different fields, we will lose credibility and reliable partners. Then the country will depend on other countries, the consequences are unthinkable, so the government often borrows, instead of printing extra money

The debt-fueled economy that we have now does not necessarily need to maintained by a gold reserve. It does, however, need support by a strong GDP in order to grow or else it enters stagflation--stagnation of growth and inflation of prices. This is what happens if the government tries to print money too quickly. Prices increase but wages do not. That can most certainly result in a crisis, like Venezuela is experiencing.

That's where the IMF steps in to "rescue", or in other words, financially rape the country for all it's worth. Privatization of everything possible means multinational firms can reap the benefits of that country.