Why an economic crisis is inevitable. - page 6
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We have already said that even if the population spends every penny, there is no profit. And inflation will further reduce solvent demand.
So you keep forgetting about emission. It is issue that creates the flow of money. But emission comes through people. That is, those who are closer to the emission, they always get rich and "give away" to those around them. So a person has gained a ruble, and his neighbour has already gained 2, because he is closer to the source of emission, which means that his ruble has depreciated. Inflation exists because of the emission of money, which in turn does not allow people to become poorer, because there is always an injection of money, giving the population more money. You can print as much money as you want, as long as you have somewhere to spend it. And where to spend it is what IT is doing now. The new iPhone will come out in a year...). As long as people want something there will be no collapse. You have to support what you want.
Remember the game of musical chairs. This is a very close analogy to capitalism in a closed system. Very fast death. So our job is to keep exports at a sufficient level.
I absolutely agree, we need exports to create demand for our currency.
Oh, the US inflation mechanism is just genius! When I figured it out, I was just amazed at how ingeniously it was done.
I thought: If there's inflation, the currency gets cheaper, simple as that. So if US inflation was higher than UK inflation for a year, then the dollar should be cheaper against the pound for that year, generally logical. I gathered statistics for 8 countries over 10 years on inflation and compared rates. That's where I was surprised! Inflation is higher in america and the dollar is getting more expensive.... It's a mystery. And then I realised all the genius. We will create demand for USD all over the world, so we will make its price rise against other currencies, BUT at home we will create inflation!!! and keep it stable. It turns out that the USD is becoming more expensive for everyone but the Americans, for them it is becoming cheaper. Domestically, citizens are getting more and more dollars that are cheap for them, but these dollars are getting more expensive on the foreign market. This is how they have created a permanent increase in the wealth of their citizens. Take manufacturing out to China... That way U.S. citizens can buy even more goods and become richer at the expense of other countries, earning at home cheap dollars that are expensive to the rest of the world.
And only the Swiss franc appreciates against the dollar despite inflation. That is, roughly speaking, the whole world is supporting America and America is supporting Switzerland.
I got a different impression of how they print the dollar without inflation. I realised this in Germany. when I needed to exchange my new $100. It turned out that the new $100 is only exchanged at special authorised banks. Consequently, they print dollars for each country separately (different series). And if this paper suddenly appeared elsewhere, it was immediately removed from circulation and sent back to the same country. It's done by replacing damaged notes. They can fill the entire world with dollars, but it will have no effect on the domestic market. The explanation is simple. We're making the notes more secure. And they only print the big ones.
So you keep forgetting about emission. It is issue that creates the flow of money. But emission comes through people. That is, those who are closer to the emission, they always get rich and "give away" to those around them. So a person has gained a ruble, and his neighbour has already gained 2, because he is closer to the source of emission, which means that his ruble has depreciated. Inflation exists because of the emission of money, which in turn does not allow people to become poorer, because there is always an injection of money, giving the population more money. You can print as much money as you want, as long as you have somewhere to spend it. And where to spend it is what IT is doing now. The new iPhone will come out in a year...). As long as people want something there will be no collapse. You have to support what you want.
Named dollars. I wonder if they issue them for Kaliningrad?
I haven't studied it in detail, but I'm sure that's exactly what it is. With today's IT it is possible to manage global inflation.
Cool, I'll go check it out.
I have a different impression of how they print the dollar without inflation. I realised this in Germany. when I had to change the new $100. It turned out that they only change the new $100 at special authorised banks. Consequently, they print dollars for each country separately (different series). And if this paper suddenly appeared somewhere else, it was immediately removed from circulation and sent back to the same country. It's done by replacing damaged banknotes. They can fill the entire world with dollars, but it will have no effect on the domestic market. The explanation is simple. We're making the notes more secure. And they only print the big ones.
Cash dollars for other countries' central banks are printed to order, and of course vary in series. But it hardly plays a big role in the economy. Cash turnover in the west is incomparable to non-cash turnover.
No, the main problem is that purchasing power is always significantly lower than the sum of the prices of goods produced. It's a dead end. A closed economy cannot generate profits. And the economy has become global, hence closed loop. Everything else is garnish and variations with no global significance. It does not matter how we divide, what matters is whether there is something to divide.
there are still plenty of countries that have nothing and lots of people to sell to. For example India. There are 1.3 billion people there and they have nothing (but no money either))). As long as the global economy will develop India, Indonesia, Sri Lanka and all of Africa, export will not die and the economy will remain export-driven. And then maybe it will come to the space colonies.
If there is a collapse, which I do not really believe, then we will start all over again, not the first nor the last time. One should not think more about whether there will be a collapse or not, but how to take advantage of the situation. Because someone will benefit anyway.
But the emission model has been tested for thousands of years. The principle is not only about economics. The sun constantly emits energy to the planet, this is the only reason why we live. And all living and non-living things are engaged only in the redistribution of energy. But there have been crises on the planet too, such as global cooling. The law is similar. Everything lives off the energy gradient. All this is true for the economy as well. As long as there is a gradient in the value of money, the economy will exist, and this gradient is created by emissions. There will be crises, and severe ones, but the collapse will only happen if people die out, or if some technology is created...