value of currency by PyRoMaNiAc 2015/03/30 05:50
It doesn't matter which part if the world you comming from the fact us that the money of your country seems to buy less and less goods each year. I want us to discuss this topic. Why is money loosing it's value and can we do anything to change that?
It doesn't matter which part if the world you comming from the fact us that the money of your country seems to buy less and less goods each year. I want us to discuss this topic. Why is money loosing it's value and can we do anything to change that?
ACIDized 2015/03/30 07:02
Don't you have economics in school. Didn't they taught you about inflation?
Don't you have economics in school. Didn't they taught you about inflation?
PyRoMaNiAc 2015/03/31 05:31
No. I never did one economicw class in my life. I studied at a technical school so I only did engineering studies. Why do we have inflation? What is inflation?
No. I never did one economicw class in my life. I studied at a technical school so I only did engineering studies. Why do we have inflation? What is inflation?
Ahmadkano 2015/03/31 08:23
The term inflation can be defined as a continous and persistence rise in goods and services.this happen when the volume of goods and services purchased is permanent running higher than goods produced and much money is chasing too few good in a country.
The term inflation can be defined as a continous and persistence rise in goods and services.this happen when the volume of goods and services purchased is permanent running higher than goods produced and much money is chasing too few good in a country.
PyRoMaNiAc 2015/04/01 03:16
Ohk. So it's like if the printed or credited money is more than the goods of the country? So inflation is a way for the system to balance itself out? By risibg the prices in order to keep up with currency in seculation?
Ohk. So it's like if the printed or credited money is more than the goods of the country? So inflation is a way for the system to balance itself out? By risibg the prices in order to keep up with currency in seculation?
PyRoMaNiAc 2015/04/07 06:05
Like I said. I'm no economist so I been doing some digging. It is said that the raise in prices is only a symptom of the real problem. Inflation is caused by the supply and demand ratio as you guys explained but the real issue is why there is more money than there are goods. To make a very long story very short I read that government debt is causing inflation. Government borrows money at interest to finance some of it's projects. It then has to inflate it's currency in order to pay off these debts with their interest. Problem with that is that it takes off the G.D.P of the country. That means it will have to borrow more to cover the gap and inflate more. How true is this?
Like I said. I'm no economist so I been doing some digging. It is said that the raise in prices is only a symptom of the real problem. Inflation is caused by the supply and demand ratio as you guys explained but the real issue is why there is more money than there are goods. To make a very long story very short I read that government debt is causing inflation. Government borrows money at interest to finance some of it's projects. It then has to inflate it's currency in order to pay off these debts with their interest. Problem with that is that it takes off the G.D.P of the country. That means it will have to borrow more to cover the gap and inflate more. How true is this?
ACIDized 2015/04/08 06:55
You are on right track. The whole thing is very complicated. The root of trade deficit is the import and export ratio.
If a country's imports are more than the total amount of its exports. It has a negative effect, as much of money is going out then coming in.
You are on right track. The whole thing is very complicated. The root of trade deficit is the import and export ratio.
If a country's imports are more than the total amount of its exports. It has a negative effect, as much of money is going out then coming in.
ACIDized 2015/04/08 07:02
For example, the crude oil prices crashed and it hurt the Russian economy, as that is the main resource of their revenue. Then again the mess they made in ukraine is backfiring them. You can see their currency exchange rate has dipped.
For example, the crude oil prices crashed and it hurt the Russian economy, as that is the main resource of their revenue. Then again the mess they made in ukraine is backfiring them. You can see their currency exchange rate has dipped.
PyRoMaNiAc 2015/04/09 07:52
Ohk. I want to ask two things. 1 if the oil is now so low does it not mean the price was fixed before? It could have been cheaper all along but for the sake of profits which are killing the countries with the weaker currencies it was deliberately made more expensive than it needed to be? 2 why is your currency different from mine? What determines how strong or weak our currency is? If the currency was the same it would affect everyone equally
Ohk. I want to ask two things. 1 if the oil is now so low does it not mean the price was fixed before? It could have been cheaper all along but for the sake of profits which are killing the countries with the weaker currencies it was deliberately made more expensive than it needed to be? 2 why is your currency different from mine? What determines how strong or weak our currency is? If the currency was the same it would affect everyone equally
ACIDized 2015/04/09 15:04
Like I said factors that affect the value of any currency are inflation, import export difference(trade deficit) etc
Plus few other factors, which you can read here http://www.investopedia.com/articles/basics/04/050704.asp
And since not all countries have equal level of inflation, exim deficit, etc. There will always be difference in value of currencies.
Like I said factors that affect the value of any currency are inflation, import export difference(trade deficit) etc
Plus few other factors, which you can read here http://www.investopedia.com/articles/basics/04/050704.asp
And since not all countries have equal level of inflation, exim deficit, etc. There will always be difference in value of currencies.
ACIDized 2015/04/09 15:12
The crude oil prices depend upon it's supply and demand. USA is intentionally dumping more oil in market/ or as they say they've discovered more reserves over there( as we all know it's just to suppress Russia). But this is not related to this topic so won't post much about it here.
The crude oil prices depend upon it's supply and demand. USA is intentionally dumping more oil in market/ or as they say they've discovered more reserves over there( as we all know it's just to suppress Russia). But this is not related to this topic so won't post much about it here.
PyRoMaNiAc 2015/05/04 07:02
Thanks for the link you shared. After reading it I realised the problem is actually with the Fiat system. Why does a country have to borrow money instead of just printing it from nothing like the banks do? Cause if a country did not sell bonds or make loans to support it's growth the problem wouldn't be so big. The right to create money should be with the country not privately owned central banks.
Thanks for the link you shared. After reading it I realised the problem is actually with the Fiat system. Why does a country have to borrow money instead of just printing it from nothing like the banks do? Cause if a country did not sell bonds or make loans to support it's growth the problem wouldn't be so big. The right to create money should be with the country not privately owned central banks.
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