bilby
Fair dinkum thinkum
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- Mar 6, 2007
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On the contrary, you fail to understand that German currency printing in the 1920s is an example of a response to an economic collapse due to a nation being robbed blind.Bilby fails to understand that Germany in the 1920's IS an example of what happens when a country runs its printing press in overdrive
The hyperinflation wasn't the cause of economic collapse, it was a result of it.
The cause was the requirement to use national infrastructure for the benefit of other nations, in the form of paying them a debt denominated in a currency not under German control.
When national infrastructure ceases to be used to the benefit of the national economy, and its production is either sharply curtailed, or confiscated by people who take it out of the country, or both, the result is hyperinflation. And one unavoidable consequence of hyperinflation is a local demand for very high values of banknotes in circulation. Printing money is a symptom of collapse, not a cause of it, as we saw in Germany, and more recently, in Zimbabwe.
Blaming hyperinflation on the printing of money is putting the cart before the horse.
And creating money in order to pay debt isn't a strategy I am promoting anyway; It's just a rebuttal to the daft idea that the USA might one day be faced with a demand for US dollars that it doesn't have the resources to fulfil. Which is exactly synonymous with the idea that the integers might be finite.
For any integer n, there exists an integer n+1 that is always greater than n. For the integers to be finite implies a largest integer, nmax, such that nmax+1 is less than or equal to nmax, which would be a contradiction.
You're welcome.