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Can we print more money to overcome financial crisis?

January 8th, 2009 admin
  • What the heck, can't we just print more currency to put in circulation to overcome the financial crisis?


  • USA owes an awful lot of money to many foreign and domestic lenders. And if USA devalues its currency by printing a lot more money and paying off its debts. Then all of these lenders would be extremely upset about their losses. And economic co-operation in society and internationally would probably grind to a halt. People, governments, and organizations simply won't trust each other's promises any more in terms of financial obligations.

    Printing more money would probably cause an even worse economic crisis than the present one.


  • Printing more money was one of the causes of the crisis.


  • No, that causes inflation, which makes the value of the money on the global scale go down.

    Think Germany after WWI.


  • Wow, ALL the answers above me are wrong.

    Yes, creating money is considered to be one of the solutions to the problem, and the government is doing that now with wild abandon. However, the government doesn't just go around handing people $20 bills, that won't solve anything. The money-creation occurs through lending; the credit crunch has choked off the normal lending process.

    So the government is trying to get banks and the commercial paper money markets back to lending as normal to businesses that need short term loans, so that they can continue operating, buying stuff, and making payroll.

    All the crap you hear about how printing money does nothing but cause inflation -- sometimes it can do that, but that is totally irrelevant now, when we are facing exactly the opposite problem of deflation and dysfunctional credit markets.

    If you see the news today you see that the U.S. government is about to start injecting capital into banks by buying shares. There is one reason and one reason only to do that -- to get the banks to create mo' money mo' money mo' money.


  • short answer no,money would become worth less


  • Because of the gold standard all money has to be backed by gold, so printing more money would mean less gold per dollar. And that is bad.


  • NO. it is true that we can print more currency BUT what we want to avoid is 'inflation'. print more money and the money will hold no value.

    Just look at the Great Depression for the example.

    During the Great Depression, people began pouring out their milk because it held no more value. the money didn't mean anything to them no more because the economy was so effected.

    money had been printed to help out the Great Depression but the money no longer held any more value. In other words, it no longer held any currency value.

    The New Deal was an attempt to fix the economy while making the money gain its value once more. With the addition of World War 2, money began to have more value.

    The Great Depression slowly faded...

    So, now..the least thing we want to do is have a Great Depression 2.

    Imagine, with 6 billion people on earth, a Great Depression 2 means international devastation and home front destruction.

    So, what we want to avoid are two things:

    Inflation and Recession.

    Those two will basically crush our economy status.


  • Well, I would definately tell everyone to stop looking at pass events. First of all, the gold standard and all is dead. We live in an economy of flexible exchange rates. Printing money however does cause inflation and thus reduces it overall value. Naturally inflation does occur (some countries like Canada have it around 2 percent per year), yet the question at hand is what can get investors confidence back. That is tough, printing money is not the answer. We need to go back to keynesian (governments must spend money, keep people in jobs, get money moving. THe 700 billion "rescue" plan is an example of that, it will take time for it to find its way through the system. What Canada did with 25 billion to transfer mortgages from banks to the federal government is another example (that will give Canadian banks an additional 25 billion $ that they can use and at the same time this is a safe loan because the mortgages are protected by the CHMC. The federal government just bought debt they protect. So, the answer is no, do not print money. It will take time, but we are not heading for a depression, but we are now in a recession and this will be known as the world crises of 2008. Good job Bush!!!! Go out with a bang.


  • No. Paper money has absolutely no value, and printing more will just lead to inflation. Bread and milk are already twice as expensive as they were a year and a half ago. Print more money - watch food become unaffordable.

    I hate to break it to you, but the thing people having been declaring impossible for the last eighty years has happened: we have busted our economy beyond repair, and it comes when our resources are low, our national inventiveness has been dumbed down right out of the picture, and the few people that are benefiting seem perfectly happy to see the rest of us become homeless hungry and ultimately dead.

    This is the first moment of the gigantic class war that the rich intend to use to dramatically reduce the population of the planet.

    edit: and by the way ska string theory is completely wrong. The dollar has not been backed by gold in half a century.







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