Post
Topic
Board Economics
Re: Fiat Money is a Bubble
by
keyscore44
on 05/11/2019, 22:54:15 UTC
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

Don't forget that some fiat money is secured in gold and in gems. So it's not so easy to say it's a bubble.
However, everyone know that governments are still printing fiat money, and unfortunately this is very dangerous for the global economy.
I once found a country that was affected by inflation because the country printed its banknotes with a very large amount and was not controlled so as to make the country become devastated and the exchange rate was very severe, so in my opinion if more money was printed then it would make fiat money would affected by inflation.

Basically yes, but of course it depends on how much money they print. Ecomomists know that printing money is possible (it is never safe for country's economy) when exports increase. Then printing money allows country to increase imports. Such behavior only theoretically increases the development of the country's economy. Because it increases the danger that when the export falls, the country will be with a surplus of money. This has happened recently in Argentina and made there huge inflation.