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BrAiN
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Why do we increase the supply of money?
#7739630 - 12/10/07 08:45 AM (16 years, 1 month ago) |
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I know one of the reasons for inflation is that we print more money... but why do we print more money in the first place?
Is it the politicians' superficial, cheap attempts at making citizens feel like they have more money for a short period of time?
Or is there a real reason behind it?
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Silversoul
Rhizome


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Re: Why do we increase the supply of money? [Re: BrAiN]
#7739636 - 12/10/07 08:47 AM (16 years, 1 month ago) |
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It allows politicians to spend more money without directly raising taxes.
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BrAiN
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Re: Why do we increase the supply of money? [Re: Silversoul]
#7739645 - 12/10/07 08:49 AM (16 years, 1 month ago) |
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Is that for real?
Maybe I should rephrase my question. What's the reason the politicians FEED US as to why they print more money?
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Silversoul
Rhizome


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Re: Why do we increase the supply of money? [Re: BrAiN]
#7739655 - 12/10/07 08:55 AM (16 years, 1 month ago) |
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Quote:
BrAiN said: Is that for real?
Maybe I should rephrase my question. What's the reason the politicians FEED US as to why they print more money?
Something like, "My opponent here wants to raise your taxes."
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BrAiN
Art Fag

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Re: Why do we increase the supply of money? [Re: Silversoul]
#7739668 - 12/10/07 09:03 AM (16 years, 1 month ago) |
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Nah I meant is there some reason the politicians feed us for ECONOMIC reasons.. some technical jargon bla bla reason as to why it's done?
(e.g. because more widgets are produced in a year and more widgets are in existence so the value of all goods and services increases every year and the money needs to be added to offset this value and then ajdusted for depreciation and bla bla bla INSERT BUZZ WORD HERE yada yada for that and yada yada yada)
Off the top of my head that's just some reason I can think of that might be why.. I don't know if it's true or not
Ya know.. stuff like that? What's the economic reasoning behind why we print more money?
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Phred
Fred's son


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Re: Why do we increase the supply of money? [Re: BrAiN]
#7739692 - 12/10/07 09:19 AM (16 years, 1 month ago) |
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Quote:
What's the economic reasoning behind why we print more money?
To avoid the problems to the economy which arise from deflation of currency.
Phred
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BrAiN
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Re: Why do we increase the supply of money? [Re: Phred]
#7739696 - 12/10/07 09:20 AM (16 years, 1 month ago) |
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Simple answer... I like it.
Can you give me just a single example of a problem caused by deflation? I'm curious.
How could it be a problem to have our money with MORE?
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afoaf
CEO DBK?



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Re: Why do we increase the supply of money? [Re: BrAiN]
#7739788 - 12/10/07 09:58 AM (16 years, 1 month ago) |
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deflation also implies higher interest rates, since there is less money available.
high interest rates makes money expensive to borrow.
this tends to slow economic growth and, generally, increased unemployment
the trick is to maintain low interest rates, permitting economic expansion through affordable lending while also trying to keep the money supply from expanding so much that inflation begins to build up.
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BrAiN
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Re: Why do we increase the supply of money? [Re: afoaf]
#7739802 - 12/10/07 10:02 AM (16 years, 1 month ago) |
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I've actually got a pipe dream right now for going back for a second Bachelor's ... this time for Econ... been on a kick lately.
I dunno if it will last. I've gotten accepted before into schools to go back for a second bach and bailed last minute.
I'm going to hit up my library and brush up on my Calculus. I figure if I can survive the boredom of Calc on my on at home, I'll have the will power to make it through 30 more credits.
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Silversoul
Rhizome


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Re: Why do we increase the supply of money? [Re: BrAiN]
#7739813 - 12/10/07 10:06 AM (16 years, 1 month ago) |
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Quote:
BrAiN said: I've actually got a pipe dream right now for going back for a second Bachelor's ... this time for Econ... been on a kick lately.
I've considered this too, but I fucking hate math.
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BrAiN
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Re: Why do we increase the supply of money? [Re: Silversoul]
#7739845 - 12/10/07 10:16 AM (16 years, 1 month ago) |
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I was a math whiz in high school.. took two math courses a year till i got to calc. My senior year i left high school early to take it at the comm college and then failed it .. it was the time where I started getting depressed though.
I fucked it up in college again with a D and then finally with a C. I also screwed up a lotta history courses too, but nowadays I'd get an A because as of the last 5 years I LOVE history.
I think if I went back and took calc again I'd ace it simply because now that I'm older, I can take the things I hated in school and learn how to APPLY them, which was my biggest beef in college. I just wanted to get most courses OVER WITH and learn as little as I could to get by.
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afoaf
CEO DBK?



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Re: Why do we increase the supply of money? [Re: BrAiN]
#7739884 - 12/10/07 10:29 AM (16 years, 1 month ago) |
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you had bad college math professors.
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BrAiN
Art Fag

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Re: Why do we increase the supply of money? [Re: afoaf]
#7739939 - 12/10/07 10:43 AM (16 years, 1 month ago) |
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Actually one of them was really bad. Even the math geeks hated him because you couldn't understand a lick of ENGRISH but mostly because he'd write formulas on the board while STANDING in front of them so you couldn't read them and give you about 5 seconds before he erased them.
When everyone yelled out for him to stop erasing so they could copy shit, he'd get all pissed and yell at the class.
Maybe they were bad professors.. I dunno.. Plenty of people got A's when I didn't. I think I was just a slacker.
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bugabuga420
bUgAbUgaBOO


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Re: Why do we increase the supply of money? [Re: afoaf]
#7739948 - 12/10/07 10:44 AM (16 years, 1 month ago) |
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first off politcians have nothing to do with increasing the money supply, thats the FED Chairmans job. Currently Ben Bernanke check out the ron paul vs bernanke videos on youtube. ron paul sticks it to him in regards to the money supply and inflation.
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BrAiN
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Re: Why do we increase the supply of money? [Re: bugabuga420]
#7739968 - 12/10/07 10:51 AM (16 years, 1 month ago) |
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Quote:
bugabuga420 said: first off politcians have nothing to do with increasing the money supply, thats the FED Chairmans job.
I know, but who appoints the chair?
The president is always going to attempt put people into positions (head of the Fed, Supreme Court justices, head of departments) who benefit their own interests.
And I saw the video you're talking about. It was hilarious. Ron Paul pwned him.... but all in vain. Nothing is gonna' change.
Ben (paraphrased): "inflation ain't bad .. it doesn't really effect things that much if you only buy american shit"
Retarded.. like we live in a bubble and buy only american goods. Toyota, Sanyo, Sony, DRRRR.... like no one in America buys this shit. Hell... even overseas companies own part of American banks.
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afoaf
CEO DBK?



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Re: Why do we increase the supply of money? [Re: BrAiN]
#7739970 - 12/10/07 10:52 AM (16 years, 1 month ago) |
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I had pretty poor teachers in high school...I had a great college professor.
for the course I had to retake (due to low math SAT score) I got an A in college in the same course I had received a low C in high school for.
I did all my math early in high school...I think my brain caught up to me in college...the concepts were much more readily understood...the teacher was much better...and the hot chick next to me in my class also motivated me.
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BrAiN
Art Fag


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Re: Why do we increase the supply of money? [Re: afoaf]
#7739979 - 12/10/07 10:55 AM (16 years, 1 month ago) |
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LOL!. That'll do it.
Yea I had a GREAT high school math teacher that I tried to take all my math classes with. I was even on the math team (yea I was a dork).
She made me really love math.
I was really just confused in college though. My professors weren't the best... but usually even with a bad professor if you try hard you can still get an A. I just wanted to get it over with. I was so pissed off at the fact that I didn't realize I hated what I was majoring in until it was too late that I just wanted to get my classes over with so I could get a job and make enough money to go back.
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LunarEclipse
Enlil's Official Story



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Re: Why do we increase the supply of money? *DELETED* [Re: afoaf]
#7740114 - 12/10/07 11:34 AM (16 years, 1 month ago) |
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Post deleted by LunarEclipseReason for deletion: fr
-------------------- Anxiety is what you make it.
Edited by LunarEclipse (12/10/07 11:52 AM)
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BrAiN
Art Fag


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Re: Why do we increase the supply of money? [Re: LunarEclipse]
#7740155 - 12/10/07 11:42 AM (16 years, 1 month ago) |
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I'll let you guys in on a secret.
The business I'm in... I benefit GREATLY from the housing market going berzerk and mass amounts of people losing their homes.
I'm a hypocrate... I argue for a stable economy, but in the end I'll be relieved when someone wins in '08 that is going to be as shitty as everyone else... causing it to continue.
Other than that... no comment 
ARMS are for suckers.
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afoaf
CEO DBK?



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Re: Why do we increase the supply of money? [Re: BrAiN]
#7740185 - 12/10/07 11:49 AM (16 years, 1 month ago) |
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they aren't wholly for suckers.
it's just easy for a sucker to get lured in to one while trying to ride the wave of the housing boom.
fucking discovery channel made everyone think they could buy and flip a house all by themselves with a glue gun and some landscaping being the only thing between you and a small fortune.
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LunarEclipse
Enlil's Official Story



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Re: Why do we increase the supply of money? [Re: afoaf]
#7740213 - 12/10/07 11:55 AM (16 years, 1 month ago) |
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"It's the lure of easy money, it's the remuddlers blues..."
-------------------- Anxiety is what you make it.
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BrAiN
Art Fag


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Re: Why do we increase the supply of money? [Re: afoaf]
#7740224 - 12/10/07 11:58 AM (16 years, 1 month ago) |
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Haha true.
I like HGTV. They give you the REAL deal on flipping houses and show you all the massive headaches people go through, as well as give you the actual numbers (including the amount people had to pay in mortagages and shit while their house sat on the market). Sometimes the stories aren't too happy.
I'm kind of irritated at the prices of the condos I live in. In my county.. the prices of homes are gowing up a bit, but my condos... ugh.... I bought mine in the low 200's and all the others around me for sale in my neighborhood were around the same. The one across from me is now at 140! WTF. Not good for me. The one downstairs from me was on the market forever. Thank God the dude finally took it off and rented it. Good thing not to have a low priced place right next to you.
It's weird too. My area is safe.. next to a park... walking distance to a lot of shit... lot of commercial construction going on nearby.
I guess people suddenly decided to just STOP buying condos in the DC area.
Good thing I plan on living here at least 2-3 years.
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LunarEclipse
Enlil's Official Story



Registered: 10/31/04
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Re: Why do we increase the supply of money? *DELETED* [Re: BrAiN]
#7740246 - 12/10/07 12:05 PM (16 years, 1 month ago) |
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Post deleted by LunarEclipseReason for deletion: no
-------------------- Anxiety is what you make it.
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BrAiN
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Re: Why do we increase the supply of money? [Re: LunarEclipse]
#7740258 - 12/10/07 12:08 PM (16 years, 1 month ago) |
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Yea man... nothing wrong with making money in the misfortune of others.. someone has to clean up the mess ya know? As long as I ain't the one screwing ppl over.
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Phred
Fred's son


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Re: Why do we increase the supply of money? [Re: BrAiN]
#7740809 - 12/10/07 02:04 PM (16 years, 1 month ago) |
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BrAiN writes:
Quote:
Can you give me just a single example of a problem caused by deflation? I'm curious.
No one wants to lend money.
While wikipedia has serious flaws, there are times when it's a good place to start. Check out http://en.wikipedia.org/wiki/Deflation
It'll tell you all you need to know.
Phred
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