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Old 11-07-2013, 03:25 AM
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Mandosh Mandosh is offline
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Quote:
Originally Posted by RuGlu6 View Post
Wasn't on here for a while, thanks for keeping this going, appreciate that.

Talking about debt and its ceiling, lets ask ourselves a simple question...

Why money is being borrowed from the private banksters if Government has a right to print it and use it with out any interest?
Who is in control?
.
Not everything is a conspiracy. Simple answer:

Supply, demand, and inflation. If more money is added to circulation (i.e. the government prints more money) the prices of goods will rise to a point that we are no better off, and more than likely worse, financially than before. In short, printing more money devalues it.


The way the global market works is the same on a small scale. For example, every time money is "printed" it increases the total supply available in the market. Logically, some of that money will be used and purchasing of goods will increase. Increased purchasing will equal increased demand. In order to keep up with demand, retailers will either have to raise prices to reduce the number of purchases and avoid running out of stock, or bring in more stock. Same concept applies to suppliers, if retailers order more they have to increase production or raise prices to reduce demand. To increase production in a system with limits (like real life) logically you have to increase inputs (e.g. capital and work hours), this means increased costs and, likely, increased wages to encourage the increased work. If wages and costs go up, then price also has to go up. Yes we would have more money, but it would take more of that money to purchase the goods we need.

One more thing,

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Last edited by Mandosh; 11-07-2013 at 03:29 AM.
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