General Discussion
In reply to the discussion: If You Have The Ability to Create Your Own Currency, How Can You Ever Be Broke? [View all]spidly
(1 post)Hyperinflation - give everybody a million dollars for doing nothing, an egg would probably end up costing 2 million immediately.
Currency, even fiat currency has to reflect some real stable value. I may not be able to convert my dollar into gold, but today - tomorrow - and next year I can convert it into a jumbo box of JuJuBees. Today - tomorrow - and net year I can earn X number of JuJuBees per hour at job Y.
Printing your way to wealth doesn't happen. http://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic
The Soviets all but used potato stamps to churn out money and destroy central european currencies after WWII - hyperinflation on purpose.
The QE's have/are pumping billions into the money supply each month but it basically shows up as government debt and not physical dollars. Banks liquidate securities which the government buys, and the banks buy government bonds. The fed is making it profitable for banks to do all this swappy craziness so money never really hits the market - It all stays on paper. Banks end up getting paid to borrow from the fed. Cool.
It'll probably end very badly.