Money is only paper, there are plenty of trees, why is there lack of money, why are there poor countries without money, what's the deal?
2006-07-25 07:20:11 · 9 answers · asked by Anonymous in Society & Culture ➔ Community Service
Every dollar that is printed has to be backed up by the country's gold and silver reserves. If there was nothing to back up the paper, then our money would be worthless around the world. Every US dollar has a "gold value", and depending upon the rising value of gold, that is what our money is worth. It is not "just paper", because that paper stands for something more. Paper alone is not worth much of anything. They started printing paper money because it was very inconvenient for people to carry around gold and silver all of the time because it is heavy.
2006-07-25 07:29:11 · answer #1 · answered by Oblivia 5 · 2⤊ 2⤋
Money isn't just paper. Money is printed by the government is backed by the gold the government owns, which is held in Fort Knox and other places. The value doesn't come from the printing. In the US, the Federal Reserve "operates" the currency and it's separate from the Federal Government.
Currency has no intrinsic value, the value is the currency issuer's ability to pay that value with specie or gold, diamonds, or other things that do have value. Currency is just a simpler method of doing business, particularly since the values of specie fluctuate.
I don't think I'm explaining this well.
2006-07-25 14:28:10 · answer #2 · answered by Muffie 5 · 0⤊ 0⤋
Printing more money leads to inflation and distrust of a currency, which leads to more inflation. This is a very bad thing for everyone. Imagine having $100,000 in the bank one day - and then the next day its only worth $50,000.
2006-07-25 14:24:54 · answer #3 · answered by The Man 4 · 0⤊ 0⤋
if u printed more money the value of it would go down and that wouldnt solve ur problem. and the countrys problems are food not money well money too but mostly food.
2006-07-25 14:24:15 · answer #4 · answered by sara ? 3 · 0⤊ 0⤋
Inflation. The american dollar is a distribution of our countries wealth rating in an international arena. The more bills we print the more overly distributed that wealth is. So ineffect it wouldnt make no difference.
2006-07-25 14:23:59 · answer #5 · answered by Brandon 3 · 0⤊ 0⤋
The more money printed, the less the value of the money, therefore creating bigger problems.
2006-07-26 20:06:51 · answer #6 · answered by *luz* 2 · 0⤊ 0⤋
because printing more money leads to inflation and more problems. Our money would be worth less.
2006-07-25 14:26:58 · answer #7 · answered by lowkey616 3 · 0⤊ 0⤋
Because the more you print, the less it is worth.
2006-07-25 18:39:11 · answer #8 · answered by robert43041 7 · 0⤊ 0⤋
Germany did that back in the twenties, look how that ended up.
2006-07-25 14:40:49 · answer #9 · answered by iknowtruthismine 7 · 0⤊ 0⤋