Quote:
Originally Posted by crucifissio
so that 300$ disappears for ever?? no...it gets spent again and again...many times per month...whether its abroad or domestic, in a money printing economy like the USA, it matters little...worst case scenario is they turn the printing press on again...
you would kill to be in their shoes...so would I  |
It doesn't disappears, but it definitely won't get back into the pocket of the government who handed it out - so basically in the long run, the government will run out of money. No matter what happens the government will get back only up to 20% of it (according to our example here). And yes you can print money, but not with that speed.. if they get back only 20%, then it means they need to devalue the money 5x each month (basically an inflation of 500% each month). So in January a bread costs $1, next month it should cost $5 to keep up the money flow..