Economic Adviser Explains How Money Works

"Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich."...

"But we have also," continued the management consultant, "run into a small inflation problem on account of the high level of leaf availability, which means that, I gather, the current going rate has something like three deciduous forests buying one ship's peanut."...

"So in order to obviate this problem," he continued, "and effectively revalue the leaf, we are about to embark on a massive defoliation campaign, and...er, burn down all the forests. I think you'll all agree that's a sensible move under the circumstances."

― Douglas Adams, The Restaurant at the End of the Universe

suitkees wrote: Is there a point that's being made? Or do we have to guess about it? Every national (federal) bank prints money, so I don't see what's at stake here (other than that the bloke is rambling about it...).

I'd thought money was being printed in regards to expectations on how much goods should be exchanged with it, so there'd be enough cash available in banks/societies.

A 100% digitalized system would make it all simplier as there's nothing to predict, provided we all all know how much we have on our accounts. One day someone tells he's got goods to sell for that much, and one buyer agrees on the amount it will transfer, no cash involved, just 0s and 1s

Edited by jayem - August 04 2024 at 04:22

Indeed there are many conspiracy theories around the topic of governments printing money. At the most basic level it is interesting to ponder where the printed money goes (the old adage of "follow the money"). This is the usual situation: