What would happen if the money have date of lapsing?

Question

(Hi a new in YA)

Kisess

Answer 1

All paper money depends on the confidence of the holders for it's value. If the paper expired, suddenly the faith of the holders would evaporate .. (plainly when the paper 'expires' the issuing authority has stolen your money and can now print replacement paper and spend it again)


So the first effect would be to destroy all confidence in that countries currency ... no one would want to receive their 'fake' money, so everyone would demand to be paid in Euros or Dollars (or other non-expiring currency) or gold...

The exchange rate would disappear overnight and all Imports would stop as the country ran out of other currencies to pay suppliers.

The countries economy would collapse as workers would no longer accept the 'fake' money from their employers .. those who could, would leave... those 'paid' by the Government would immediately buy physical items for barter (as happens in 3rd world countries with 2,000% inflation)

The country would decend into chaos as the populance took to the streets and demanded the Governments resignation .. this would rapidly be followed by armed rebellion or a millitary coup as the army (being paid in 'fake' money) acts to overthrow the criminals in power ..

Answer 2

Generally when a currency has a potential to "lapse" the common local practice is to resort to the barter system to continue to participate in the local economy. South American countries are famous for recalling currency issues, invalidating entire issues, and overprinting bills for a lower denomination.

The local value of a currency is based on what you can get with it. If there is a doubt about the value that the currency represents the locals will ask for something "extra" to shore-up the value.

Answer 3

Hi nice RedWoman,I think that it would be a system with multifactorial advantages and problems. makes me think that it would stimulate the circulation of the wealth and therefore the global or regional activation (according to is applied) of the economy. The accumulation of wealth would be limited based on the lapsing. , on the other hand serious a measurement indicated by the possessors of the wealth (those who single hoard and do not generate) like the worse proposal than had become in history. But if they adjust, finally they will continue obtaining benefit. I am touched your proposal, seems to me that she is worthy of an economic thesis. The form in which civil employee your idea, is not "to spend" in consumption, but to invest in generating but and that beneficiary to rich and poor. Of course it would put us to all to work and to generate like loquitos, because the one that did not do it, "that if she goes away to the hole".

Kisess for U.

Answer 4

do no longer force the vehicle on the days of the lapse. in case you reason an twist of fate and you're uninsured the the different celebration will ought to document a declare with the aid of their own insurance employer. in the event that they have injuries then with any luck they have good clinical insurance or the have Uninsured motorist insurance. If their vehicle is broken then with any luck they have collision insurance. you're risking too plenty with the aid of utilizing uninsured. How might you experience if somebody hit you and had no insurance to pay on your clinical costs or vehicle damages? Borrow money or do no longer force

Answer 5

everyone would go on a spending spree to make sure they would spend it in time