Could so much money be printed that all currencies would lose their value?

[jamie4281]

If so, what would that world be like and how would we create a new system of sustainable currency?

[jno]

They wouldn't lose their value completely, just shrink a lot. If the GDP of a country is worth £100, but it prints £1000 instead, the GDP doesn't change but the £ is worth a tenth of what it used to be. What's happened in the past is that they've simply relaunched the currency - a "new £" worth ten old pounds would restore the status quo. The French and Italians did that between the war and the euro.

[bigbadmarty]

From what I understand banknotes consist of a small percentage of the money supply, the majority being deposits , bonds etc , so maybe your question wouldn't arise . I'm sure someone will clear it up !

[Old_Geezer]

The governments and banks are trying that experiment right now. They'll get back to you when they find out the answer.

[HowardKennitby]

People would resort to the old system of barter. Eventually things would settle out and the idea of a currency would recur.

[Old_Geezer]

Probably so. Not that it is likely to get that far. Currency is only an IOU in affect anyway. Saves you needing to perform both halves of the barter at the same time with the same person. You've performed some service to society and are due goods or services in return; here is your promissory note for same, cash it where you will.

[Gowron]

This has effectively been done in Germany and Hungary with Hyper inflation. Essentially cash is worthless and simple objects become "money".

But yes in theory QE will always cause inflation but limited when contriolled but if uncontrolled cash would be worthless.

[Gowron]

It's worth pointing out though that what we call "money" is mostly not in cash.

[factor-fiction]

In Germany it got to the stage where you needed a wheelbarrow full of bank notes to go shopping. Muggers used to discard the near-worthless money and run off with the wheelbarrow

[Elderman]

How often we hear someone call money “the root of all evil.” This gives the wrong impression, conceals a treacherous snare and obscures a sign of the last days. Why? Because money is not the root of all evil. There is nothing evil intrinsic in the circulating medium called “money.” What the root of all evil really is can be found in the words of Christ’s apostle: “Those who are determined to be rich fall into temptation and a snare and many senseless and hurtful desires which plunge men into destruction and ruin. For the love of money is a root of all sorts of injurious things, and by reaching out for this love some have been led astray from the faith and have stabbed themselves all over with many pains.” (1 Tim. 6:9, 10) Here, then, is where this evil-inspiring root—the love of money! What happens to those who fall victim to the love of money you can see.

[jomifl]

Elderman , you miss the point again, it is not the desire for money that is the 'root of evil' As you have so eloquently explained, evil comes from the 'devil, apparently as you have often stated. Money is only a convenient way of acquiring and measuring status, It is the desire for status,leading to arrogance and megalomania that leads to what you call evil as well as certain mental conditions that leave people with a lack of empathy for their fellow man. Religious obsession often leads to people putting religious dogma before humanity resuling in acts of 'evil'. It is ironic that both communism and christianity which both claim to exist for the benefit of man have managed to cause immeasurable suffering and death to countless millions of people whilst accepting no responsibility for the consequences of their ideology or dogma.