Money, Money, Money

I'm probably going to get a lot of laughs (and not the good kind!) out of this thread, but I'm completely prepared.

Although valued highly, money is simply plastic/paper printed with ink.. isn't it? Doesn't every country have those machines that constantly print out several batches of fresh notes? Therefore, how is it that a country can be struggling financially?

Unless the plastic/paper requires the blessing of pixies, which are only keen to do so once a year, and the ink is extracted from giant squids that lurk deeper than any vessel can reach allowing such a task during rare beachings, why is production on demand such an issue?

Again, I'm sorry for asking such a silly question. I'm just trying to learn, haha. Remember, it's better to ask stupid questions to gain wisdom than it is to remain stupid!

Sorry if this is in the wrong section.

The more money that is printed, the lower the value of the currency. Just like anything else, the more there is, the less it's worth.

Oh, I think I see now!

It's like when they print basketball cards, right? The rarer the card, the higher its worth.

I still don't get it though.. Who decided that "poorer" countries currencies are worth less? I'd say that Africa has less currency than America so, from what you just told me, shouldn't theirs be worth more?

Wah, I'm getting confused!

Yes, it's very much like basketball cards in that sense.

A nations wealth, and thus the value of its currency depends upon the resources that a nation produces. Nations with a lot to sell have more valuable money than nations that don't have much to sell.

Think in terms of a house, on one street, being worth a hundred grand and another house, just blocks away, being worth three times as much. The house with more "stuff" put into it is worth more.

I'm oversimplifying a bit, but it works.

Lol, thanks for taking the time to respond.

The whole system is quite overwhelming though. A wealthy family in their home country may suddenly become poor in another country even though their wealth hasn't changed - they've just changed location.

Going back to your housing term, a beautiful home in the suburbs could be worth $250,000. However, the exact same home located in front of the beach could be worth up to $2 million. All of this is regardless of the contents. Now, putting contents into play, let's fill the home in the suburbs with a lot of material goods, and let's strip the home in front of the beach of all of its goods. The latter home can then be worth less?

Am I finally getting it?

LOL now it's getting convoluted. Banks don't really care too much about your stuff (Unless you've got a Monet or Picasso hanging in the living room). They do care about property. Thus the beachfront house is still worth exactly as much more regardless of furnishings in the banks eyes.

And moving to another nation doesn't necessarily effect your wealth adversly. In fact it can improve it depending upon the currency exchange rate and the economic state of the nations involved.

Does my conspiracist mind show?

Hmm, so it's the bank's fault now! Greedy bastards..

Okay, so far I've processed that location means everything and contents aren't as important (but still essential). Therefore.. Ugh, I've learnt how to become a real estate agent!

[edit on 17-6-2009 by Pandapple]

It was not too long ago that money was defined as gold and silver coins, and sometimes certificates that could be redeemed in those metals. What we have now is properly called fiat money. It only has value if people believe it has.

reply to post by boethius


True. But this was an attempt to stay way simple. Bringing up fiat currency would have led to discussing hyperinflation, an explanation of the gold standard, Coolidge, Kennedy, the Fed, Jeckyll Island, the IMF, Alex Jones... And you see how numb my digits would have been after typing that and how brain friend the OP would have been! lol

LMAO!!!!!!

My brain is already fried, haha. I'm considering a career in freakin' real estate when all I wanted to know was why mass producing bills isn't ideal!

On a serious note, I commend you guys for having so much knowledge on what I initially thought (tsk!) was a straightfoward subject. I sure do have a lot more to learn about how the world functions.

It sure has been entertaining though, hehe.