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Old 05-07-2018, 02:33 PM
 
Location: Chicago area
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I've heard it actually prevents inflation due to excessive printing of money. The US dollar is the world reserve currency and everyone want to hold their money in US dollars as it is the most viable option. Thus when the Fed prints more money people buy it and hold it around the world preventing the currency from getting devalued.
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Old 05-07-2018, 02:35 PM
 
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Originally Posted by MSchemist80 View Post
I've heard it actually prevents inflation due to excessive printing of money. The US dollar is the world reserve currency and everyone want to hold their money in US dollars as it is the most viable option. Thus when the Fed prints more money people buy it and hold it around the world preventing the currency from getting devalued.

But we need the "gold standard" of just printing money. How can we just keep printing money, when we dont have anything to back it up with?
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Old 05-07-2018, 02:40 PM
 
Location: Omaha, Nebraska
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Originally Posted by hitpausebutton2 View Post
Why cant a $1 be worth its actual $1? what purpose does it need to be "inflated" more then it is worth. Its still a $1.
A dollar (or any other currency) has no fixed worth. Buyers and sellers, through their collective transactions, determine its worth at any given time.
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Old 05-07-2018, 02:52 PM
 
Location: Gilbert, AZ
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Originally Posted by hitpausebutton2 View Post
The bold is what i cant grasp. Just rise the debt of the person?
If you take out a long-term loan at today's rate and then during the term of that loan inflation is higher than expected, you "win" as a borrower because you are paying with inflated dollars.

Of course, this doesn't work to the benefit of the borrower if everyone already knows that inflation is high, since the interest rate on the loan with reflect the expectation of high inflation.
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Old 05-07-2018, 03:15 PM
 
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Originally Posted by hikernut View Post
If you take out a long-term loan at today's rate and then during the term of that loan inflation is higher than expected, you "win" as a borrower because you are paying with inflated dollars.

Of course, this doesn't work to the benefit of the borrower if everyone already knows that inflation is high, since the interest rate on the loan with reflect the expectation of high inflation.

Generally its your putting interest on a $ that has its "built in interest rate". How did this become so complicated that nobody cant seem to know who is on first?. I mean who idea was it to say.. Hey lets just pretend this $ is worth more then it really say it is, or lets just make up interest rates as we go along.
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Old 05-07-2018, 03:34 PM
 
Location: Omaha, Nebraska
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Originally Posted by hitpausebutton2 View Post
I mean who idea was it to say.. Hey lets just pretend this $ is worth more then it really say it is, or lets just make up interest rates as we go along.
No one's. No currency (including the US dollar) has a fixed value. Interest rates aren't fixed, either. Both are determined by the aggregate results of hundreds of thousands of transactions taking place every day.

Last edited by Aredhel; 05-07-2018 at 03:58 PM..
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Old 05-07-2018, 03:53 PM
 
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Originally Posted by Aredhel View Post
No one's. No currency (including the US dollar) has a fixed value. Interest rates aren't fixed, either. Both are determined by the aggregate results of hundreds of thousands of transactions taking place every day.
o its "fixed" like mafia fixed ( base on country), and how much "country" wants to make back.
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Old 05-07-2018, 04:02 PM
 
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Umm, no.

Thanks for playing though.

Judging from your questions you really should attempt to educate yourself a bit more and do some reading before you drop gems like "its "fixed" like mafia fixed".

There are certainly areas of manipulation but the idea that the entire economy is fixed or that a dollar can always just be a dollar is born of ignorance more than anything else.
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Old 05-07-2018, 04:02 PM
 
Location: Omaha, Nebraska
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Originally Posted by hitpausebutton2 View Post
o its "fixed" like mafia fixed ( base on country), and how much "country" wants to make back.
Nope. Individuals (and countries, for that matter) can't be compelled to make or take out loans. Absent that compulsion, either the potential lender or the potential borrower will choose another option if the loan becomes too unfavorable.

As I said earlier, there are no Illumanti controlling either the national or the global economy. That's the major reason economic forecasting is so complicated and unreliable: too many moving parts.
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Old 05-07-2018, 04:30 PM
 
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Originally Posted by aridon View Post
Umm, no.

Thanks for playing though.

Judging from your questions you really should attempt to educate yourself a bit more and do some reading before you drop gems like "its "fixed" like mafia fixed".

There are certainly areas of manipulation but the idea that the entire economy is fixed or that a dollar can always just be a dollar is born of ignorance more than anything else.

Yea like the oil market? We all know its manipulated base on false speculation that never happens, and yet we allow it?

Doesnt the bank reserve try to adjust the interest base on what the banks are holding/providing? If we want the government to stay out of business, then why are pushing government interest on others?
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