Inflation is caused when additional money is created but production remains the same. So if I could “create” a million euros out of thin air (something all Western banks do everyday) then I could buy a nice house. If we could all “create” a million euros and tried to buy a house, then the price of houses would rise. We would have the inflation you refer to.
If the government “creates” money and spends that money into the economy (e.g. building new infrastructure, giving cheap loans to businesses) then this new money is being used for new production, it is not being used to buy existing assets. The government can increase the money supply (“create” money) until the economy is fully employed and factories are working at 100% of capacity. After this point any new money creation is likely to lead to inflation.
In Serbia, unemployment and under-employment is a serious problem. The Serbian government could easily “create” the Dinar equivalent of 20 billion euros to invest in the country with causing inflation. They wouldn’t create this money all at once, but maybe add 100-200 billion Dinars to the economy every 3 months. The government should keep an eye on inflation and, if needed, they could remove some of this new money from the economy through taxation and other government charges.
The control of the money supply is an art that Serbia will have to learn. But your fear that this will inevitably lead to inflation is unfounded.
If you increase the money supply, and everyone has more money (because you're paying 100 000din/month with printed money), then that money will be worth less and you'll have inflation.
Do you maybe propose controls on prices.
I'm curious how your voodoo theory works.
(Danilo, 12 December 2011 21:48
Although your question is addressed to Michael i will try to answer it for you.The money issued by the Government would be no more inflationary than the money created by the banks: it would be the same figures, based on the same production of the country. The only difference is that the Government would not have to get into debt, or to pay interest, in order to obtain these figures.
The first cause of inflation is precisely the money created plus interest as a debt by the banks: inflation means increasing prices. The obligation for the governments that are borrowing to bring back to the banks more money than the banks created, forces businesses to increase the prices of their products, and the governments to increase their taxes
in order to compensate for thee interest that was not created in the first place.
"and they will not cause inflation because they will be used to employ unemployed people and to build new infrastructure (schools, hospitals, roads, etc). "
wat?
If you increase the money supply, and everyone has more money (because you're paying 100 000din/month with printed money), then that money will be worth less and you'll have inflation.
Here is a good explication of the corrupt system being set up for the new world order but the same old wickedness in a slightly different newer packagehttp://www.youtube.com/watch?v=BSVxAAeh4Mw http://www.youtube.com/watch?v=A4RdugjPxi0 .
Spot on Michael.Unfortunately many people in US,for example,do not understand why their treasury has to borrow dollars from the privately owned Federal Reserve and pay interest when the US government can create its own dollars with its value guaranteed by the state.In order for people to understand the reasons they will have to re-visit the 1906 US constitution and the coup de tat by the banks by the banking mafia against the American people.
As Baron M.A. Rothschild wrote : “Give me control of a nation's money and I care not who makes her laws".
Who is lending Serbia money? Western Banks! The same Western Banks that are all bankrupt and need multi-billion euro bailouts from Western governments.
How can bankrupt Western banks lend Serbia anything? Surely bankrupt banks have no money.
The truth is that Western banks can “create” money out of thin air. If a Western bank has 1 million euros on deposit, it can create 10 million euros to lend to Serbia and other suckers. Recently, bank lending rules have been relaxed and now banks don’t even need the initial 1 million euros before they create 10 million. Some banks don’t need any reserves at all.
Serbia borrows billions of euros from banks that create euros from nothing. Serbians must work for years to produce goods which can be sold for the euros needed to pay back these loans and the interest due on them.
I repeat: Serbians must work hard to produce goods to pay for loans which the banks created out of thin air, with zero effort.
This is what people mean when they talk of “debt slavery.” Serbs are slaves to the Money Masters, people who create loans out of thin air and demand real goods and hard work in exchange.
Serbia should print its own Dinars and use them to pay salaries and for reconstruction and development. These Serbian Dinars can be created debt-free (no interest payments and they don’t need to be paid back), and they will not cause inflation because they will be used to employ unemployed people and to build new infrastructure (schools, hospitals, roads, etc).
If Serbia continues to borrow Euros and Dollars at the current rate, then Serbia will be a ruined country, like Greece.
Only the Dinar can save Serbia. The IMF know this and that is why it has forbiden the Serbian from printing Dinars.
Who is lending Serbia money? Western Banks! The same Western Banks that are all bankrupt and need multi-billion euro bailouts from Western governments.
How can bankrupt Western banks lend Serbia anything? Surely bankrupt banks have no money.
The truth is that Western banks can “create” money out of thin air. If a Western bank has 1 million euros on deposit, it can create 10 million euros to lend to Serbia and other suckers. Recently, bank lending rules have been relaxed and now banks don’t even need the initial 1 million euros before they create 10 million. Some banks don’t need any reserves at all.
Serbia borrows billions of euros from banks that create euros from nothing. Serbians must work for years to produce goods which can be sold for the euros needed to pay back these loans and the interest due on them.
I repeat: Serbians must work hard to produce goods to pay for loans which the banks created out of thin air, with zero effort.
This is what people mean when they talk of “debt slavery.” Serbs are slaves to the Money Masters, people who create loans out of thin air and demand real goods and hard work in exchange.
Serbia should print its own Dinars and use them to pay salaries and for reconstruction and development. These Serbian Dinars can be created debt-free (no interest payments and they don’t need to be paid back), and they will not cause inflation because they will be used to employ unemployed people and to build new infrastructure (schools, hospitals, roads, etc).
If Serbia continues to borrow Euros and Dollars at the current rate, then Serbia will be a ruined country, like Greece.
Only the Dinar can save Serbia. The IMF know this and that is why it has forbiden the Serbian from printing Dinars.
Spot on Michael.Unfortunately many people in US,for example,do not understand why their treasury has to borrow dollars from the privately owned Federal Reserve and pay interest when the US government can create its own dollars with its value guaranteed by the state.In order for people to understand the reasons they will have to re-visit the 1906 US constitution and the coup de tat by the banks by the banking mafia against the American people.
As Baron M.A. Rothschild wrote : “Give me control of a nation's money and I care not who makes her laws".
Here is a good explication of the corrupt system being set up for the new world order but the same old wickedness in a slightly different newer packagehttp://www.youtube.com/watch?v=BSVxAAeh4Mw http://www.youtube.com/watch?v=A4RdugjPxi0 .
"and they will not cause inflation because they will be used to employ unemployed people and to build new infrastructure (schools, hospitals, roads, etc). "
wat?
If you increase the money supply, and everyone has more money (because you're paying 100 000din/month with printed money), then that money will be worth less and you'll have inflation.
If you increase the money supply, and everyone has more money (because you're paying 100 000din/month with printed money), then that money will be worth less and you'll have inflation.
Do you maybe propose controls on prices.
I'm curious how your voodoo theory works.
(Danilo, 12 December 2011 21:48
Although your question is addressed to Michael i will try to answer it for you.The money issued by the Government would be no more inflationary than the money created by the banks: it would be the same figures, based on the same production of the country. The only difference is that the Government would not have to get into debt, or to pay interest, in order to obtain these figures.
The first cause of inflation is precisely the money created plus interest as a debt by the banks: inflation means increasing prices. The obligation for the governments that are borrowing to bring back to the banks more money than the banks created, forces businesses to increase the prices of their products, and the governments to increase their taxes
in order to compensate for thee interest that was not created in the first place.
Inflation is caused when additional money is created but production remains the same. So if I could “create” a million euros out of thin air (something all Western banks do everyday) then I could buy a nice house. If we could all “create” a million euros and tried to buy a house, then the price of houses would rise. We would have the inflation you refer to.
If the government “creates” money and spends that money into the economy (e.g. building new infrastructure, giving cheap loans to businesses) then this new money is being used for new production, it is not being used to buy existing assets. The government can increase the money supply (“create” money) until the economy is fully employed and factories are working at 100% of capacity. After this point any new money creation is likely to lead to inflation.
In Serbia, unemployment and under-employment is a serious problem. The Serbian government could easily “create” the Dinar equivalent of 20 billion euros to invest in the country with causing inflation. They wouldn’t create this money all at once, but maybe add 100-200 billion Dinars to the economy every 3 months. The government should keep an eye on inflation and, if needed, they could remove some of this new money from the economy through taxation and other government charges.
The control of the money supply is an art that Serbia will have to learn. But your fear that this will inevitably lead to inflation is unfounded.
"and they will not cause inflation because they will be used to employ unemployed people and to build new infrastructure (schools, hospitals, roads, etc). "
wat?
If you increase the money supply, and everyone has more money (because you're paying 100 000din/month with printed money), then that money will be worth less and you'll have inflation.
Who is lending Serbia money? Western Banks! The same Western Banks that are all bankrupt and need multi-billion euro bailouts from Western governments.
How can bankrupt Western banks lend Serbia anything? Surely bankrupt banks have no money.
The truth is that Western banks can “create” money out of thin air. If a Western bank has 1 million euros on deposit, it can create 10 million euros to lend to Serbia and other suckers. Recently, bank lending rules have been relaxed and now banks don’t even need the initial 1 million euros before they create 10 million. Some banks don’t need any reserves at all.
Serbia borrows billions of euros from banks that create euros from nothing. Serbians must work for years to produce goods which can be sold for the euros needed to pay back these loans and the interest due on them.
I repeat: Serbians must work hard to produce goods to pay for loans which the banks created out of thin air, with zero effort.
This is what people mean when they talk of “debt slavery.” Serbs are slaves to the Money Masters, people who create loans out of thin air and demand real goods and hard work in exchange.
Serbia should print its own Dinars and use them to pay salaries and for reconstruction and development. These Serbian Dinars can be created debt-free (no interest payments and they don’t need to be paid back), and they will not cause inflation because they will be used to employ unemployed people and to build new infrastructure (schools, hospitals, roads, etc).
If Serbia continues to borrow Euros and Dollars at the current rate, then Serbia will be a ruined country, like Greece.
Only the Dinar can save Serbia. The IMF know this and that is why it has forbiden the Serbian from printing Dinars.
Here is a good explication of the corrupt system being set up for the new world order but the same old wickedness in a slightly different newer packagehttp://www.youtube.com/watch?v=BSVxAAeh4Mw http://www.youtube.com/watch?v=A4RdugjPxi0 .
Spot on Michael.Unfortunately many people in US,for example,do not understand why their treasury has to borrow dollars from the privately owned Federal Reserve and pay interest when the US government can create its own dollars with its value guaranteed by the state.In order for people to understand the reasons they will have to re-visit the 1906 US constitution and the coup de tat by the banks by the banking mafia against the American people.
As Baron M.A. Rothschild wrote : “Give me control of a nation's money and I care not who makes her laws".
If you increase the money supply, and everyone has more money (because you're paying 100 000din/month with printed money), then that money will be worth less and you'll have inflation.
Do you maybe propose controls on prices.
I'm curious how your voodoo theory works.
(Danilo, 12 December 2011 21:48
Although your question is addressed to Michael i will try to answer it for you.The money issued by the Government would be no more inflationary than the money created by the banks: it would be the same figures, based on the same production of the country. The only difference is that the Government would not have to get into debt, or to pay interest, in order to obtain these figures.
The first cause of inflation is precisely the money created plus interest as a debt by the banks: inflation means increasing prices. The obligation for the governments that are borrowing to bring back to the banks more money than the banks created, forces businesses to increase the prices of their products, and the governments to increase their taxes
in order to compensate for thee interest that was not created in the first place.
Inflation is caused when additional money is created but production remains the same. So if I could “create” a million euros out of thin air (something all Western banks do everyday) then I could buy a nice house. If we could all “create” a million euros and tried to buy a house, then the price of houses would rise. We would have the inflation you refer to.
If the government “creates” money and spends that money into the economy (e.g. building new infrastructure, giving cheap loans to businesses) then this new money is being used for new production, it is not being used to buy existing assets. The government can increase the money supply (“create” money) until the economy is fully employed and factories are working at 100% of capacity. After this point any new money creation is likely to lead to inflation.
In Serbia, unemployment and under-employment is a serious problem. The Serbian government could easily “create” the Dinar equivalent of 20 billion euros to invest in the country with causing inflation. They wouldn’t create this money all at once, but maybe add 100-200 billion Dinars to the economy every 3 months. The government should keep an eye on inflation and, if needed, they could remove some of this new money from the economy through taxation and other government charges.
The control of the money supply is an art that Serbia will have to learn. But your fear that this will inevitably lead to inflation is unfounded.
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