Help me understand the global monetary system.
May 6, 2004 3:06 PM Subscribe
Money confuses and scares me. [further within]
posted by Pretty_Generic to work & money (26 answers total) 3 users marked this as a favorite
Is there a fixed amount of money in the world today, or is it variable? If I find a new gold deposit and sell it for cash, am I creating new money or just spreading the old stuff around? If I put my money in a bank account and they lend it to someone else, isn't that doubling the amount? Do countries have to destroy old banknotes before they can print new ones? What's to stop a nefarious foreign government from printing shedloads of new banknotes and spending it all on Hawk jets before anyone notices? If money in the West used to be based on precious metals, but is now based on securities and services, how did they manage the changeover, given that comparing the two seems entirely based on instantaneous and transitory sentiment?