Thursday, December 3, 2009

Is it possible to printing mor and more currency to eliminate poverty ?

No. If a country prints more and more currency, it drives the value of their money down. If too much is printed, then it is possible to end up with currency not worth the paper it is printed on.Is it possible to printing mor and more currency to eliminate poverty ?
No, that would cause hyperinflation. As more and more currency is printed, the value of the dollar goes lower and lower. Soon, it would cost $4 for gas, then $10, then $50, then $100 and then higher and higher as more currency is printed. Same with everything else, from insurance costs, wages, salaries, milk, fruits, computers, condoms, t-shirts, basketballs. As more money is pumped into the economy, it becomes more freely available to lenders to lend. Therefore, more people will borrow more money at lower interest rates. They will then spend more money, causing goods and service producers to raise their prices. As they raise their prices, consumers will demand higher wages from their employers, and so on. It is just like a domino effect.Is it possible to printing mor and more currency to eliminate poverty ?
Thats the quickest way to bankrupt a country,look at uganda %26amp; other countries that did it

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