Recession Beater!!

Hey so the world is in a recession right now and it’s all to do with money but what I can’t understand is why can’t they just print more money?!

My brother says that if they did that that someone will get greedy but I dunno I think that that might be better than the mess we’re in and wouldn’t people have learned a lesson from the former lifestyles and seen flaws in their ways of spending now that the recession has given them time to reflect??!

Also wouldn’t whoever or wherever they make money all over the world (in banks?!) have a strict set of rules and monitoring?

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Answer #1

OK, so they print more money then what?

Hand it out to people in the streets? \see madilovesthemaine’s reply above.

Banknotes are worthless in their own right and to have a value, the amount printed needs to be covered by a governments gold reserves and other investments.

The went out of control in Germany in the 1920’s and people literally needed to fill a wheelbarrow with banknotes just to pay for a loaf of bread!

I read a story that during this time, someone was mugged and the emptied his bank notes on the ground and stole his wheelbarrow as it was worth more than the banknotes contained in it.

A countries economy is a very complicated and delicate process and printing extra bank notes is not the answer.

PS This is currently being planned in Britain and a number of specialists are very concerned about this.

The government is planning to print billions of extra notes and purchase bad investments from banks to try and kick-start the economy and encourage banks to start lending again.

However, if this plan is not stopped at the correct moment, it can lead to massive inflation.

Kiasu

Answer #2

ok, if we print out more money, that would bring less value in money, and we’d be drowning deeper in the recession. Obviously, that’s not going to make things better, now is it?

Answer #3

When they make money they have to have something to “back it up” Like the goverment has the vault that is filled with gold,silver, jewels, and other valuable items. So the amount of money in our economy is based on the amount of those items

Answer #4

I keep asking that, and nobody has an answer! Why don’t they just “print” more? There’s something I’m not getting. :)