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Nairaland Forum / Nairaland / General / Politics / Why Do Nations Borrow When They Can Easily Print Money? (1980 Views)
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Why Do Nations Borrow When They Can Easily Print Money? by CodeTemplar: 8:34pm On Feb 12 |
Ever wondered why that is? Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally? |
Re: Why Do Nations Borrow When They Can Easily Print Money? by adeoyekay(m): 8:43pm On Feb 12 |
Fully following |
Re: Why Do Nations Borrow When They Can Easily Print Money? by fayomim: 8:44pm On Feb 12 |
Okay |
Re: Why Do Nations Borrow When They Can Easily Print Money? by ElSudani: 8:45pm On Feb 12 |
CodeTemplar: Inflation, one of the reasons we are in the situation we are in right now. Print more money and you will soon realize that the 1million minimum wage the Labour dude was talking about will not be enough to feed you for a week. 11 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Davidblen(m): 8:45pm On Feb 12 |
You can't print money , the only was a country can “print” money for use is by selling treasury bills and treasury bonds If the government print money to use they will be hyperinflation as a result of too much money Ask Zimbabwe and Venezuela 10 Likes 1 Share |
Re: Why Do Nations Borrow When They Can Easily Print Money? by slim75d(m): 8:50pm On Feb 12 |
If to say I be CBN governor I for bless Nigerians with enough money. I for dey print money every Friday 4 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Bookhub: 8:51pm On Feb 12 |
if e too much e go loose value 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Bookhub: 8:51pm On Feb 12 |
slim75d: the money useless na |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Abagworo(m): 8:52pm On Feb 12 |
Import dependent nations need to borrow because of foreign exchange but nations that produce everything they consume do not need foreign exchange 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by ElSudani: 8:54pm On Feb 12 |
slim75d: I have a picture in my head of you carrying your Ghana must go bag full of money across the street to buy breakfast for Saturday morning. 14 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Birdbyrde440: 8:57pm On Feb 12 |
CodeTemplar: Who will be incharge of the printing? Assuming it's the president, that means he can print money and buy whatever he wants, e.g Biden printing billions and sending to Ukraine. He can PRINT any amount he likes and easily become the richest man. There will be loss of productivity because no one will be willing to work for money that can be easily printed at will hence its crucial that money be scarce and difficult to counterfeit, money must be decentralized to establish trust. 2 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by yesloaded: 9:01pm On Feb 12 |
CodeTemplar: They print more naira Some people go loot the money and use it to mop up available dollars The money lose value It's like having excess tomatoes without any preservative method in place, it becomes rotten 3 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Karleb(m): 9:17pm On Feb 12 |
This question again. It's like saying, why go to school when you can buy the certificate. Then only country that does it is USA and that's because they have their military and sanctions as backing. What US does is synonymous to kidnapping the family of a prospective employer if they refuse to employ you with a degree you bought. 3 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Jjj0: 9:28pm On Feb 12 |
Story |
Re: Why Do Nations Borrow When They Can Easily Print Money? by 9jatriot(m): 9:44pm On Feb 12 |
I can understand you as a lay man asking this kind of question but emiefele as CBN governor who is supposed to laugh so hard at this kind of suggestion went ahead to be printing money indiscriminately. 5 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Prigidypogodo(f): 10:05pm On Feb 12 |
lol and tomorrow this one will start contesting for a political office when he doesn't understand simple basic economics 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by mrvitalis(m): 10:28pm On Feb 12 |
CodeTemplar:Why pay money to buy land and get the documents Why not just print documents n claim lands |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Paraman: 10:38pm On Feb 12 |
CodeTemplar:If a country government decide to print more money then the government will also have to increase local production to match up with it, if local production does not increase, inflation will deal with the country because lots of money will be chasing few goods, before you know it, prices of goods and services will start increasing 2 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by NaijaphiliaBlog: 10:42pm On Feb 12 |
CodeTemplar: PRINTING VS BORROWING: WHY NOT? Afterall, currency na just pieces of paper! This is the reason that ordinary citizens, during times of crisis, always wonder why government doesn't simply print more currency. Economists, however, have always warned against the impulse to print more money. If government creates too much money, people suddenly end up with a lot more in their hands; Consumers then suddenly demand more goods/ services, whereas supply would be unable to meet the sudden sharp rise in demand. This sudden higher demand thus pushes prices up, which (in the worst-case scenario) results in hyperinflation. FOR INSTANCE: In Zimbabwe in year 2008 alone, inflation increased to 231,000,000% because the government attempted to solve the country's crisis by printing paper money. A sweet which previously cost 1 Zimbabwean dollar became 231 million Zimbabwean dollars a year later! By April 2009, Zimbabwe had to stop printing its currency and started using currencies from other countries. ILLUSTRATIONS A. The first photo below shows Zimbabwean banknotes ranging from 10 dollars to 100 billion dollars that were printed within a one-year period (the magnitude of the currency scalars signifies the extent of the hyperinflation). B. The chart below the photo shows Zimbabwe's inflation of almost 25,000% in 2007. 4 Likes
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Re: Why Do Nations Borrow When They Can Easily Print Money? by Paraman: 10:42pm On Feb 12 |
I doubt the new minimum wage will be up to 70k sef because of inflation 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Paraman: 10:43pm On Feb 12 |
NaijaphiliaBlog:It seems I have seen this kind of comment somewhere before. |
Re: Why Do Nations Borrow When They Can Easily Print Money? by richiemcgold: 10:46pm On Feb 12 |
...only if everything we consume locally are 💯% produced locally. 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Ofodirinwa: 10:55pm On Feb 12 |
If there's too much of your currency in circulation, the value drops. If the value drops, the amount you wanted to create through printing decreases. So if you need an extra 2 billion naira for a project, and you print 2 billion naira, the value of the naira drops and that 2 billion won't be worth 2 billion anymore. The only way to balance it is if you are producing enough to make your currency in high demand. If people are scrambling to find Naira to buy your goods, the value of the currency increases. So that the 1 billion you are holding automatically becomes 2 billion without you lifting a finger. 2 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Ofodirinwa: 10:56pm On Feb 12 |
Also, people should stop using Zimbabwe as an example. Zimbabwe was embargoed economically by the US and UK and they re-marketed Zimbwe's currency because Zimbabwe gave stolen land back to blacks. 3 Likes |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Maxxim: 11:24pm On Feb 12 |
Birdbyrde440:I don't think that's what he meant, he never meant each individual should print but the arms of government that execute the printing |
Re: Why Do Nations Borrow When They Can Easily Print Money? by eepeepook: 12:24am On Feb 13 |
Why the hell do children on Nairaland keep asking this ignorant ass question?! All you have to do is read old posts for clarification. Surely, this place is littered with SS1 boys. JSS2, sef. |
Re: Why Do Nations Borrow When They Can Easily Print Money? by alphaNomega: 2:07am On Feb 13 |
Because they are not USA. That is the only country that can get away with pronting unlimited amount of money with minimal consequence to their economy but maximum damage to every one else 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by WantsandMore: 2:08am On Feb 13 |
CodeTemplar:for thesame reason Nigeria economy is/was about tank. Right now it's difficult to tell if we are about to implode or Explode cos what is this Nigerian economy? GEJ deserves an apology man. 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by alphaNomega: 2:10am On Feb 13 |
mrvitalis: Colonial powers did this to Africa. After claiming all the land and resources, they made it illegal. |
Re: Why Do Nations Borrow When They Can Easily Print Money? by Pythagoras001: 2:59am On Feb 13 |
Because you need to import things and the country you import from don't spend your currency. Economic expansion is what should normally create new money. Two much money in circulation than the total number goods and service just drives the prices up. |
Re: Why Do Nations Borrow When They Can Easily Print Money? by coputa(m): 3:14am On Feb 13 |
Davidblen:Selling treasury bills and bonds is to withdraw money from circulation, when the government notices too much liquidity. A government can print money to meet up budget deficits and thereafter gradually withdraws it from circulation 1 Like |
Re: Why Do Nations Borrow When They Can Easily Print Money? by YoungBlackRico(m): 7:24am On Feb 13 |
Ask Zimbabwe 1 Like |
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