Why Not Print More Money?

The State Causes the Poverty It Later Claims to Solve

Mises Daily: Saturday, December 07, 2013 by Andreas Marquart

If one looks at the current paper money system and its negative social and social-political effects, the question must arise: where are the protests by the supporters and protectors of social justice? Why don’t we hear calls to protest from politicians and social commentators, from the heads of social welfare agencies and leading religious leaders, who all promote the general welfare as their mission?
Presumably, the answer is that many have only a weak understanding of the role of money in an economy with a division of labor, and for that reason, the consequences of today’s paper money system are being widely overlooked.
The current system of fractional reserve banking and central banking stands in stark opposition to a market economy monetary regime in which the market participants could decide themselves, without state pressure or coercion, what money they want to use, and in which it would not be possible for anyone to expand the money supply because they simply choose to do so.
The expansion of the money supply, made possible through central banks and fractional reserve banking, is in reality what allows inflation, and thus, declining income in real terms. In The Theory of Money and Credit Ludwig von Mises wrote:

The most important of the causes of a diminution in the value of money of which we have to take account is an increase in the stock of money while the demand for it remains the same, or falls off, or, if it increases, at least increases less than the stock. ... A lower subjective valuation of money is then passed on from person to person because those who come into possession of an additional quantity of money are inclined to consent to pay higher prices than before.[1]

When there are price increases caused by an expansion of the money supply, the prices of various goods and

Czech Republic Enters Currency Debasement Club;

Mike Shedlock | Nov 07, 2013

Currency madness has spread to the Czech Republic. Central bank intervention triggered a record plunge in the Koruna vs. the Euro.

Bloomberg reports Czechs Play Koruna Hardball as Intervention Triggers Record Drop

The Czech central bank’s return to currency interventions after 11 years heralds a push for a weaker koruna to ward off deflation and kick-start the economy.

The koruna plunged 4.4 percent to 26.982 against the euro yesterday, its biggest-ever drop and the most in the world on the day, after the central bank sold the currency in the foreign-exchange market. Governor Miroslav Singer pledged to keep intervening “for as long as needed” to spur inflation, setting a target of “near” 27 per euro, a level the koruna last traded at in 2009.

“The central bank signaled willingness to play hardball in its foreign-exchange policy,” Luis Costa, an emerging-market strategist at Citigroup Inc., said by e-mail from London. “For the moment, I believe the ‘ideal level of 27’ will be met.”

Unlike interventions aimed at strengthening the exchange rate, which require sales of foreign currencies that can deplete foreign reserves, the Czech central bank is printing more koruna to drive down its value. The money supply increase may lead to the higher inflation rates that Singer is pursuing.

“The power is unlimited,” Guillaume Tresca, a Paris-based strategist at Credit Agricole SA, wrote by e-mail yesterday. “They can theoretically print as much koruna as they want.”

Hardball in Pictures - Koruna vs. Euro



It seems the "ideal" level of 27 was reached in a day. Of course it is preposterous to propose that anyone, especially central banks have any notion of what the "ideal" level is.

From a consumer standpoint, the more European goods Czech citizens can buy with the Koruna the better. But central banks will have none of that.

About That Eurozone Entry

Wikipedia comments on the Czech Republic Plans to Join the Eurozone.

The Czech Republic planned to adopt the euro in 2012, but its government suspended that plan in 2007. Although the country is economically well positioned to adopt the euro, there is considerable opposition to the move within the Czech Republic. According to a survey

The US Election and the Men who Rule the World

 By Colin Todhunter

Trashy beauty queens adorn the billboards, whoring themselves in low cut tops to sell the trash heap materialistic dream. A bit of pout here, a lot of cleavage there and the latest car, jewellery or fashion accessory is sold to the highest bidder with the weakest will. And beneath the billboard, the rush hour traffic winds its way through the evening pollution. What’s your poison – exhaust fumes or low cut, pouty-mouth seduction? The gleaming poster girl smile to go with the gleaming poster girl products and the whitewashed perfect teeth to match the whitewashed perfect lies. In a world of broken-tooth smiles and deadbeat reality, the advertising industry knows that selling a half-baked dream of ‘happiness through hedonism’ to the masses is not too hard to achieve. And that dream-world comprises products designed for obsolescence in a use and throw culture in a use and throw world of expendable countries with expendable populations that sit on top of oil and the various other mineral resources required to swell corporate coffers and keep consumerism afloat.
Is it blood, not lipstick, smeared on the lips of the pouting billboard woman? The blood spilled by those unfortunate enough to have been born in a certain part of the world on behalf of

Ένα φάντασμα πλανιέται πάνω από την Ευρώπη: Το φάντασμα της Επιχειρηματικής Εμπιστοσύνης

Ίσως να ήταν ο φόβος του κομμουνισμού που τάραξε τις κυβερνήσεις, όταν το 1848 ο Καρλ Μαρξ έγραψε τις πρώτες λέξεις του διάσημου μανιφέστου του. Όμως σήμερα ο φόβος που τις κυνηγά είναι ότι το αίσθημα των αγορών θα στραφεί εναντίων τους και θα ανεβάσει τα spreads των ομολόγων τους...


Οι κυβερνήσεις όλου του κόσμου υποχρεώνονται σε πρόωρη δημοσιονομική λιτότητα, ενώ η ανεργία παραμένει πολύ υψηλή και η ζήτηση στον ιδιωτικό τομέα αργοσβήνει. Πολλές κυβερνήσεις προβαίνουν σε διαρθρωτικές μεταρρυθμίσεις, αν και δεν πιστεύουν σ’ αυτές, μόνο και μόνο για να δείξουν καλό πρόσωπο στις αγορές.

Ο τρόμος που δημιουργείται από τις βλέψεις των αγορών, κάποτε βασάνιζε μόνο τα φτωχά κράτη. Για παράδειγμα, κατά την διάρκεια της κρίσης χρέους στην Λατινική Αμερική την δεκαετία του 1980 ή της οικονομικής κρίσης στην Ασία το 1997, οι υπερχρεωμένες αναπτυσσόμενες χώρες πίστευαν ότι

Τελικά θα μάθουμε πως δημιουργείται το χρήμα; (vid)

Από το: mykoniato
Τελικά, πώς δημιουργείται το χρήμα; Ποιός το δημιουργεί; Πώς αποφασίζεται πόσα χρήματα θα δημιουργηθούν; Πόσα χρήματα υπάρχουν στον κόσμο;

Τι είναι ο πληθωρισμός, τι είναι ο ρυθμός ανάπτυξης και πώς συνδέονται αυτά μεταξύ τους; Τι είναι το εθνικό χρέος; Πώς είναι δυνατόν, όλα τα κράτη να έχουν εθνικά χρέη; Πού χρωστάνε;



Γιατί διαβάζουμε συχνά ότι η Αμερική κάνει πολέμους για να βοηθήσει την οικονομία της ξοδεύοντας χρήματα στα όπλα; Γιατί δεν βελτιώνεται και η δική μας οικονομική κατάσταση όταν ξοδεύουμε άσκοπα τα χρήματα;

Πώς είναι δυνατόν όλοι, οι απλοί άνθρωποι, οι εταιρίες και οι κυβερνήσεις που με την εργασία τους