Question About Currency (US gov.)

Discussion in 'General Chat' started by Site Owner, Jul 10, 2006.

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  1. #1
    A friend and I were arguing yesterday about government stuff and he insisted that the US government does not need the IRS. He claims that the US government/US Dept. of Treasury can just print as much money as they want.

    I said, "if that were the case, why are some countries poorer than others?"

    This just didn't seem right, so I insisted that he was wrong, but I didn't have my own explanation.

    Someone please shine some light on this issue.
     
    Site Owner, Jul 10, 2006 IP
  2. Tyler Banfield

    Tyler Banfield Well-Known Member

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    #2
    If they did this, money would be worth nothing ;)
     
    Tyler Banfield, Jul 10, 2006 IP
  3. Site Owner

    Site Owner Peon

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    #3
    exactly but why can't they do it?
     
    Site Owner, Jul 10, 2006 IP
  4. Tyler Banfield

    Tyler Banfield Well-Known Member

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    #4
    Tyler Banfield, Jul 10, 2006 IP
  5. Site Owner

    Site Owner Peon

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    #5
    good resource, thanks.
     
    Site Owner, Jul 10, 2006 IP
  6. joelviztech

    joelviztech Peon

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    #6
    The government technically could print as much money as they wished. However, this would cause the money in question to become worthless. Countries that have started to print massive amounts of money have had severe problems (see Germany immediately following WW1). So while it might seem like a good idea to get more money just by printing it, it is a TERRIBLE idea to follow.
     
    joelviztech, Jul 10, 2006 IP
  7. digitalpoint

    digitalpoint Overlord of no one Staff

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    #7
    They can do it, and the countries that do it end up with a collapsed economy and insane inflation.
     
    digitalpoint, Jul 10, 2006 IP