• This is a political forum that is non-biased/non-partisan and treats every persons position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Economics Questions...I didn't see a specific forum

sookster

DP Veteran
Joined
Jun 12, 2011
Messages
1,838
Reaction score
452
Location
In my own world.
Gender
Male
Political Leaning
Undisclosed
Well, I just watched a video on the current state of the economy, and I have some questions.

I understand that printing money creates inflation because there is simply more money (a higher denominator results in possessed money having less value), but what exactly happens to increase prices? Does demand go up because there is more available money so the prices go up?

Can't the overall banking system pay for debts because of the fractional reserve banking system? Money is created at the same value that loans are issued. Plus they get interest. So couldn't they pay off debts? I'm confused.

How does a country intentionally devalue their currency? I know it could be by printing more money, but is there another way? The narrator said "Britain and other countries intentionally devalued their currency..." Why? Is it just because they had to print money?

Eventually prices go up so much that the confidence of the dollar ceases, and the currency collapses.

Thoughts?

Video:

[video]http://pro.stansberryresearch.com/1304PWAUP2YR/PPSIP803/?fromHandler=true[/video]

One more question. The criticism of this video, basically cites history and renowned economists on the consequences of certain actions. He doesn't go into what exactly happens. And it bothers me. I have a seemingly basic question but I need help connecting the dots.

When the worlds reserve currency switches (and there is evidence that it already has) from the US dollar, what exactly happens?

Thanks again.
 
Last edited:

longview

DP Veteran
Joined
Jan 25, 2012
Messages
30,125
Reaction score
10,121
Location
Texas
Gender
Male
Political Leaning
Conservative
Read about Spain in the fourteenth and fifteenth century.
With so much gold and silver coming from the new world, the
perceived value of things changed, as people casually threw gold around.
The value of Dollars are based on... well what people think they are worth, that's it.
If people think they are worth less, they are.
 
Top Bottom