Hacker News new | ask | show | jobs
by astrocyte 3961 days ago
I've asked this question many times to people deeply educated and versed in economics and never got a a good answer... In a world of currency pairing (ratios) A:B:C:D:E

Assuming parity among A:B:C:D, if each country prints 1 Trillion in their respective currency, what is the net effect aside from inflation 'potential'? 100:100, 1000:1000 .. It's still 1:1. Assuming there are deflationary forces countering the inflationary force of printing, nothing changes beyond maintenance of status quo.

The more and more I look at this picture, the more it appears to be global maintenance of status quo to, in the face of destabilizing systemic forces, keep things stable via countering forces (printing)

The only thing I can see suffering here are the variables outside of the clown show :

> Natural resources

> Environment

^ (Economic system becomes disentangled with underlying condition of resources/environment)

I guess this is where the eventual selling of 'global control' of these variable comes....

A system headed to centralized control.

1 comments

> Assuming there are deflationary forces countering the inflationary force of printing, nothing changes beyond maintenance of status quo.

In the net, yes, but another way of looking at this is as a wealth transfer inside each country.

In the net, the pies remain the same size, but each individual slice is worth less and less.

The result is that as each government is playing the devaluation game to keep up, the organizations with early access to the newly printed trillions in respective currencies increase their relative percentage of the pie.

It's the status quo at the inter-country level, but it's a huge wealth transfer to the politically and financially connected at the local level.