Printing of money doesn't make a country rich but to diversify like a person

[gantez]

I remember while growing up I thought of it that it only take printing of money to be rich and wonder why country just don't go ahead and print all the money it can by making order to the minting company to print money and just jumb into the number 1 richest country lol.

I don't know how many of us think that way while growing up but I think some will say nah, I didn't think that way. They will say I know better even from my mother's womb and claiming to be smarter than the elderly at those times but surely I admit the forum is giving me much challenge to research more to add up to my knowledge.

Now the reality is coming clearer with my elementary school economics sharpened up, thanks to the forum because I now read comments here taking me to study and research more to be better.

The main comparison is here. Like a rich person don't take up just one type of job, he/she is involve in different resourceful jobs or more than one job to be rich, doing just one job you may be comfortable although but is better to do more jobs. So the country that want to be rich will have to produce more products and not to rely only on one limited product or few source of revenue. A country need to produce variety of goods to increase GDP and standard of living and have excess to export and have good external reserve. With the countries of the world now, we know the richest countries are those having more resourceful means of income and they have use it to build their economy. The list is endless from those rich in technological export, oil export, health, agricultural products etc with good management of the resources.

If a country rely on just printing of money that will lead to inflation and hyperinflation which Zimbabwe is one country as example of such inflation. Printing of money will increase money circulation and price will increase at the mention of printing of it (money). Being rich is to increase your source of income and countries can increase what they produce or services provided and that is how to be rich.


Not to say printing of money is totally bad but if not controlled properly it can lead to hyperinflation.

Circumstances that money can be necessary to be printed is when the country is in short of money because they need money to build industries, give loan to manufacturals and small businesses.

Countries starting up like new independent countries can print money to start the economy properly.

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[Don Pedro Dinero]

It seems that your idea of what wealth is now is clearly better than it was before, although I think you are still a bit of a mess.

Indeed, to give you an example, having 1 million dollars is of no use to you on a desert island. And the same applies to having 1 million dollars in gold or bitcoin private keys on that island.

On the other hand, if you have 10,000 USD (100 times less) in a city that has a lot of goods and services for sale, you are much richer than the one on the desert island with 1 million.

The total goods and services produced in a country in a year is the GDP and is a measure of wealth, although this is rather like household income, net worth would be the accumulation of capital in its various forms.

[gantez]

The total goods and services produced in a country in a year is the GDP and is a measure of wealth, although this is rather like household income, net worth would be the accumulation of capital in its various forms.

We are now saying same thing. If a country is trying to get rich, diversification is part of what to do and not to rely only on limited income generated in the past. Just like an individual a country also need growth in the current development to stay relevant and increasing the resource revenue also increase the GDP and good living.

It looks you didn't understand my view of the topic.

Edit : I change topic from Being rich and a country compared to, Printing of money doesn't make a country rich but to diversify like a person

[Bitstar_coin]

The total goods and services produced in a country in a year is the GDP and is a measure of wealth, although this is rather like household income, net worth would be the accumulation of capital in its various forms.

We are now saying same thing. If a country is trying to get rich, diversification is part of what to do and not to rely only on limited income generated in the past. Just like an individual a country also need growth in the current development to stay relevant and increasing the resource revenue also increase the GDP and good living.

It looks you didn't understand my view of the topic.

Edit : I change topic from Being rich and a country compared to, Printing of money doesn't make a country rich but to diversify like a person

Perhaps you can now tell those who are clever right from their mother's womb OP
I think the difference between the above posts is, one took an economic route for explanation and the other took the laymans term to explain easily, and both definitely arrive in same conclusion.
And for a country to be financially sound, it must be producing different commodities for export to earn foreign currency to boost the countries GDP overall.  

[Hydrogen]

The main comparison is here. Like a rich person don't take up just one type of job, he/she is involve in different resourceful jobs or more than one job to be rich, doing just one job you may be comfortable although but is better to do more jobs. So the country that want to be rich will have to produce more products and not to rely only on one limited product or few source of revenue. A country need to produce variety of goods to increase GDP and standard of living and have excess to export and have good external reserve. With the countries of the world now, we know the richest countries are those having more resourceful means of income and they have use it to build their economy. The list is endless from those rich in technological export, oil export, health, agricultural products etc with good management of the resources.

If a country rely on just printing of money that will lead to inflation and hyperinflation which Zimbabwe is one country as example of such inflation. Printing of money will increase money circulation and price will increase at the mention of printing of it (money). Being rich is to increase your source of income and countries can increase what they produce or services provided and that is how to be rich.

Post industrialization worker productivity rose significantly. The lavish lifestyle billionaires enjoy today, was only made possible through technologically sourced increases in average worker productivity. Millionaires and one percenters in pre industrial times did not enjoy nearly as much excess or high standard of living. We've seen an explosion in the number of newly minted millionaires and billionaires with silicon valley and dot com tech bubbles.

In theory, there is a point where productivity rises to a point where standard of living rises dramatically.

Another interesting facet to the dialogue is increases in production also fueling a massive explosion of human population growth. In the 1950s the human population was 2.5 billion. Today its near to 8 billion. In close to 70 years we have seen the population on the planet triple.

Japan could have the right idea for pursuing a sustainable and healthy standard of living through low birth rates and negative population growth.

Rising productivity gives us a larger margin for error in terms of economic policy, as it invokes greater wealth and larger margins. It may also be correlated with longer average life expectancy and other benefits.

The main export of countries in africa is cheap labor. While the main export of silicon valley is software. I might contend the wealthiest nations export the most valuable assets and commodities. With low(er) birth rates contributing towards productivity and wealth not being diluted.

[gantez]

The main comparison is here. Like a rich person don't take up just one type of job, he/she is involve in different resourceful jobs or more than one job to be rich, doing just one job you may be comfortable although but is better to do more jobs. So the country that want to be rich will have to produce more products and not to rely only on one limited product or few source of revenue. A country need to produce variety of goods to increase GDP and standard of living and have excess to export and have good external reserve. With the countries of the world now, we know the richest countries are those having more resourceful means of income and they have use it to build their economy. The list is endless from those rich in technological export, oil export, health, agricultural products etc with good management of the resources.

If a country rely on just printing of money that will lead to inflation and hyperinflation which Zimbabwe is one country as example of such inflation. Printing of money will increase money circulation and price will increase at the mention of printing of it (money). Being rich is to increase your source of income and countries can increase what they produce or services provided and that is how to be rich.

The main export of countries in africa is cheap labor. While the main export of silicon valley is software. I might contend the wealthiest nations export the most valuable assets and commodities. With low(er) birth rates contributing towards productivity and wealth not being diluted.

This is the high point of your contribution and this is true about more less developed countries. Man power exportation while the countries that having strong economy have diversify into more technology and software not reliable only on naturally resources but have move away from there. But the difference to the exchanges done is the man power from less developed countries are regarded as unskilled but those from developed countries regarded as skilled and expatriate.

And for a country to be financially sound, it must be producing different commodities for export to earn foreign currency to boost the countries GDP overall.  

I learnt this also in elementary school and higher your foreign debt the more depreciating of the home currency

[Renampun]

Not to say printing of money is totally bad but if not controlled properly it can lead to hyperinflation.

Circumstances that money can be necessary to be printed is when the country is in short of money because they need money to build industries, give loan to manufacturals and small businesses.

Countries starting up like new independent countries can print money to start the economy properly.

I put a little quote in an article I read about the bad effects of printing a lot of money.

the reason why the state does not print as much money as possible to be debt free. Instead of being free, uncontrolled printing of money actually makes the national debt increase and the price of goods rises everywhere.

not all countries are able to withstand hyperinflation if they print a lot of money, especially for countries whose currencies are not in demand and have few foreign investors. but the dollar is different, it is an invulnerable currency and has many international transactions so that makes it strong even though it is printed a lot, cmiiw.

[Fortify]

I remember while growing up I thought of it that it only take printing of money to be rich and wonder why country just don't go ahead and print all the money it can by making order to the minting company to print money and just jumb into the number 1 richest country lol.

I don't know how many of us think that way while growing up but I think some will say nah, I didn't think that way. They will say I know better even from my mother's womb and claiming to be smarter than the elderly at those times but surely I admit the forum is giving me much challenge to research more to add up to my knowledge.

Now the reality is coming clearer with my elementary school economics sharpened up, thanks to the forum because I now read comments here taking me to study and research more to be better.

The main comparison is here. Like a rich person don't take up just one type of job, he/she is involve in different resourceful jobs or more than one job to be rich, doing just one job you may be comfortable although but is better to do more jobs. So the country that want to be rich will have to produce more products and not to rely only on one limited product or few source of revenue. A country need to produce variety of goods to increase GDP and standard of living and have excess to export and have good external reserve. With the countries of the world now, we know the richest countries are those having more resourceful means of income and they have use it to build their economy. The list is endless from those rich in technological export, oil export, health, agricultural products etc with good management of the resources.

If a country rely on just printing of money that will lead to inflation and hyperinflation which Zimbabwe is one country as example of such inflation. Printing of money will increase money circulation and price will increase at the mention of printing of it (money). Being rich is to increase your source of income and countries can increase what they produce or services provided and that is how to be rich.


Not to say printing of money is totally bad but if not controlled properly it can lead to hyperinflation.

Circumstances that money can be necessary to be printed is when the country is in short of money because they need money to build industries, give loan to manufacturals and small businesses.

Countries starting up like new independent countries can print money to start the economy properly.

Many countries do in fact do this and it is a very fine balancing act when they do. On the one hand, if their exports get more expensive then people try to source goods from different countries instead, however if they print too much money then investors might conclude that they have bad fiscal policy and stop purchasing debt which props up their ability to keep printing money. It's only really America, with it's fairly stable market economy and the country which controls the primary reserve currency of the world - the Dollar, that has much more ability to get away with it. Other countries have bought so many dollars in the past that they are actually stuck if they try to sell it off in large amounts and also see it naturally devalued over time as more is printed.

[boyptc]

When I was also a kid, I've thought of that and will just copy and print everything and boom, I'm rich. But understanding and learning economics, that's not how it goes and it's harder than I can imagine.

Just like what US and most countries did at the height of pandemic, there's so much cash in the economy and that had made an impact and I think that's also one contributor to the inflation that we're experiencing right now, not just all about the increased interest rates.

[lizarder]

I remember while growing up I thought of it that it only take printing of money to be rich and wonder why country just don't go ahead and print all the money it can by making order to the minting company to print money and just jumb into the number 1 richest country lol.

And I'm not so sure as a teenager you think that way. I mean, teenagers' minds are still quite contaminated with sensitive thoughts like this, even in lower middle school, if the teacher asked what your goals were when you grew up, what answer would we give, of course?

• President

• Police

• Doctor

It is only in this scope that our young generation is contaminated with the thoughts you convey. Although I don't really know, you are one of those young people who think so.

I don't know how many of us think that way while growing up but I think some will say nah, I didn't think that way. They will say I know better even from my mother's womb and claiming to be smarter than the elderly at those times but surely I admit the forum is giving me much challenge to research more to add up to my knowledge.

When you start to grow older, which may have gone through the level of diploma education, the answers to your questions above are very easy to answer yourself.
To print the amount of money in a country, there are legal regulations that regulate the amount that can be printed, these regulations are binding and cannot be violated, to better understand these regulations, maybe you can search on Google, although different countries have different regulations.

If a country rely on just printing of money that will lead to inflation and hyperinflation which Zimbabwe is one country as example of such inflation. Printing of money will increase money circulation and price will increase at the mention of printing of it (money).

Inflation is not affected by the printing of money, but rather because the money supply is not in accordance with the usual, there is no correlation between printing money and inflation.
Because indeed the printed money has gone through the approval of the required amount.

Being rich is to increase your source of income and countries can increase what they produce or services provided and that is how to be rich.

In this paragraph I think you are wrong, being a billionaire or a rich person needs many things to pay attention to, what steps to take, business, investment or other forms.
You can successfully increase your source of income, if you have the ability, skills and are consistent with what you want to achieve. While the State cannot provide any guarantees, the services provided will not be able to reach all levels of people, but simplify services, train resources more appropriately and enable them.

[Ucy]

A country could do well by giving the printed money to those with high chance of success in their field of endeavors. They should be those who will use the printed money wisely/prudently by investing it businesses that do not cost more than the solutions they provide. And the problems the businesses seek to solve should be serious problems that are in high demand of solutions. This should somewhat increase the likelihood of the business paying back the printed money.

[Strongkored]

I remember while growing up I thought of it that it only take printing of money to be rich and wonder why country just don't go ahead and print all the money it can by making order to the minting company to print money and just jumb into the number 1 richest country lol.

I don't know how many of us think that way while growing up but I think some will say nah, I didn't think that way. They will say I know better

If you are not knowledgeable think like that is a natural thing especially when you are not mature, even in this world many officials who should know how dangerous printing money excessively still think it's the right step and they do it, today countries that print money excessively end up being in a deplorable condition, they just think it's easy to have funds that can be used as funding.

[Inwestour]

If you are not knowledgeable think like that is a natural thing especially when you are not mature, even in this world many officials who should know how dangerous printing money excessively still think it's the right step and they do it, today countries that print money excessively end up being in a deplorable condition, they just think it's easy to have funds that can be used as funding.

Printing a lot of money is an attempt to solve the current problems in the country, but at the same time they do not think about what this may lead to in the future. Or they know what it can lead to, but they count on the fact that they will no longer be in the government until then and other people will solve these problems. In any case, it will just lead to a lot of inflation and in the end they will be able to say that this is how it always happens.

[coupable]

If you are not knowledgeable think like that is a natural thing especially when you are not mature, even in this world many officials who should know how dangerous printing money excessively still think it's the right step and they do it, today countries that print money excessively end up being in a deplorable condition, they just think it's easy to have funds that can be used as funding.

Printing a lot of money is an attempt to solve the current problems in the country, but at the same time they do not think about what this may lead to in the future. Or they know what it can lead to, but they count on the fact that they will no longer be in the government until then and other people will solve these problems. In any case, it will just lead to a lot of inflation and in the end they will be able to say that this is how it always happens.

Printing more money should not be done without having an equivalent gold reserve or major currencies that are in turn backed by sufficient gold reserves (some other precious metals can replace gold, the purpose is to add value to money more than just ink printed on paper).
Some governments in different countries resort to printing money in certain circumstances, which are often similar to the dance of a slaughtered rooster. The remnants of printing money arbitrarily are always inflation that is not difficult to correct.

[eightdots]

If you are not knowledgeable think like that is a natural thing especially when you are not mature, even in this world many officials who should know how dangerous printing money excessively still think it's the right step and they do it, today countries that print money excessively end up being in a deplorable condition, they just think it's easy to have funds that can be used as funding.

Printing a lot of money is an attempt to solve the current problems in the country, but at the same time they do not think about what this may lead to in the future. Or they know what it can lead to, but they count on the fact that they will no longer be in the government until then and other people will solve these problems. In any case, it will just lead to a lot of inflation and in the end they will be able to say that this is how it always happens.

Printing more money should not be done without having an equivalent gold reserve or major currencies that are in turn backed by sufficient gold reserves (some other precious metals can replace gold, the purpose is to add value to money more than just ink printed on paper).
Some governments in different countries resort to printing money in certain circumstances, which are often similar to the dance of a slaughtered rooster. The remnants of printing money arbitrarily are always inflation that is not difficult to correct.

Every printing of money that is not backed by an equivalent reserve increases the inflation of that country. There is no escape from it. Especially during the pandemic period, the aid packages announced by the countries again led these countries to print money. They also know that when they print money, inflation will increase. The real problem starts here. They are moving to save the day. They don't want to think about what kind of damage will occur in the future. Many countries have to suffer the consequences for printing money. And many countries will not be able to cope with it.

[qwertyup23]

If you are not knowledgeable think like that is a natural thing especially when you are not mature, even in this world many officials who should know how dangerous printing money excessively still think it's the right step and they do it, today countries that print money excessively end up being in a deplorable condition, they just think it's easy to have funds that can be used as funding.

Printing a lot of money is an attempt to solve the current problems in the country, but at the same time they do not think about what this may lead to in the future. Or they know what it can lead to, but they count on the fact that they will no longer be in the government until then and other people will solve these problems. In any case, it will just lead to a lot of inflation and in the end they will be able to say that this is how it always happens.

Printing more money should not be done without having an equivalent gold reserve or major currencies that are in turn backed by sufficient gold reserves (some other precious metals can replace gold, the purpose is to add value to money more than just ink printed on paper).
Some governments in different countries resort to printing money in certain circumstances, which are often similar to the dance of a slaughtered rooster. The remnants of printing money arbitrarily are always inflation that is not difficult to correct.

Every printing of money that is not backed by an equivalent reserve increases the inflation of that country. There is no escape from it. Especially during the pandemic period, the aid packages announced by the countries again led these countries to print money. They also know that when they print money, inflation will increase. The real problem starts here. They are moving to save the day. They don't want to think about what kind of damage will occur in the future. Many countries have to suffer the consequences for printing money. And many countries will not be able to cope with it.

Remember what happened to Zimbabwe? Their currency basically had no value at all due to the sheer amount of printing of money. The increase of supply in the money basically made it worthless to the point that their currency was denominated as "one hundred trillion dollars."

Like what you mentioned, if the printing of money cannot be backed by an equivalent of gold reserves or resources, then you are just decreasing the overall value of your currency which will make the economy hyperinflated.



image taken from: https://www.worldatlas.com/articles/the-story-of-hyperinflation-in-zimbabwe.html

[Leviathan.007]

Printing money is usually what a government does whenever they have problems with the inflation rate to have a short-term cure but that's not actually a cure for them because after doing this their fiat currency will lose its value against many assets this will also make everything hard for the people to supply food, which is all the government usually do when they fall into the trap. While that's the reason why most people trust bitcoin to have a limited supply and none can change or print more bitcoins.

[Razmirraz]

Even though the state has full authority to print money, the state cannot just print as much money as possible. The more money circulating in a country will lead to inflation and the greater the burden on the country which can make the country's debt increase.
The central bank of each country must keep the value of money stable. If a country prints as much money as possible, it will affect the exchange rate of the currency causing the exchange rate
getting down. The amount of money in circulation affects the exchange rate of foreign currency, which is why the state does not print too much money.

[Darker45]

This is precisely the reason why there are economists and financial planners. If economics is such a simple thing, countries would simply print more money and everything's good. But that's certainly not the case. Countries are responsible to increase their economic output without which their abundant money supply wouldn't mean a thing.

The value of money is founded on its economy. If a country prints more money than its economic performance, prices would only increase and the printing of money would be useless.

To illustrate it simply, if a kilo of rice is $2 and the government prints a lot of money without improving the agricultural sector and consequently rice production, a kilo would, say, rise to $10. If it continues printing without doing anything, a kilo rises to $100. Printing goes on, a kilo goes to $1,000. More printing, a kilo hits $10,000. This will go on and on until a kilo is worth a million.

This is what happened to a few countries like Zimbabwe. Too much money printing without any economic improvement has brought them hyperinflation reaching to as high as 500,000,000,000%. Neither the government nor its people didn't grow rich. What happened was that an employee with a trillion in salary per month cannot even buy his basic needs.

In contrast, if economic output is improved and there is money printing, the value of money is maintained even if the circulating supply increases. Prices may grow but only moderately and yet people are earning more. This is what economic development looks like.

[Cryptomultiplier]

Printing of money doesn't make a country rich at all, instead, its aim is such as to improve the economic standing a country. Cases like this is supposed to occur when there is deflation, a very limited number of a certain currency in circulation or when the currency notes are bad beyond use.
However, for new currencies to be printed, those who manage the economic affairs of the country sit and deliberate carefully as to how the process should go. Devalueing of the currency is one way to check  or counter such printing, if it is in excess.