Paper money represents a person's spending power, if there are not many goods, the value of paper money will rise in a straight line, then, waiting for ordinary people, is a hellish life. To understand why poor countries did not start printing money and print money on a large scale, it is necessary to know what the root causes of poverty in this country are.
Everyone knows that it is very difficult to become poor because of the large size of the country and the small population, on the contrary, if a country has a large population but few resources, then they will always be on the verge of poverty, which is the case in many countries in Africa.
Their territory is not large, but the population is far beyond their capacity, coupled with the barren land and harsh climate, the land here is not only often exposed to the sun, but even countries close to the sea are often affected by natural disasters such as tsunamis.
In addition, sudden political upheaval is also a factor that leads to poverty in a country. People are greedy, and if the rulers are not bound by strict laws, they are likely to take the property of the commoners for themselves, and if they are blinded by short-term profits, then an endless abyss awaits them.
A country that is impoverished because of its large population, but because it lacks sufficient resources, and blindly prints money, will not solve the problem. It's like a cauldron with five wings in it, and each wing has a number 5 written on it, but if the wings inside don't get bigger, that's equivalent to hundreds of extra wings. In addition to making it more inconvenient for people to use cash, it will also accelerate the collapse of various industries.
Then look at why poor countries can't print a lot of money, which is the same as traditional Chinese medicine**, it is necessary to find out**, and then prescribe the right medicine. When a country is impoverished for some political reason, the success of its formulation is a question.
Printing money to alleviate the country's much-needed cash flow will not solve the problem at all, and if money is printed on a large scale, it will cause a chain reaction of inflation, making an already unstable country even more dangerous. As a result, many poor countries would rather struggle for food and clothing every day than print money recklessly like the "tigers".
But there are a few countries that don't believe in this statement, and they're like Zimbabwe, because they're all Africans, so their living conditions aren't good. It's like playing a game, you don't have any advantages at first, but slowly develop, slowly develop.
But Zimbabwe's abrupt land reform has paralyzed the country from top to bottom. In this world, eating and drinking are the most important things, and farmland carries the responsibility of survival, which is difficult to change. Zimbabwe's land reform has caused many farmers to lose their income, and many farmers have to grow their own crops, and no one wants to do this kind of loss-making business anymore, so that domestic resources will become more and more strained.
What if you don't have enough resources? In Zimbabwe, where everyone needs to eat, hospitals, schools and other institutions are waiting for social assistance, and they are receiving a large number of requests for assistance. Now it seems that this economic crisis was caused by land reform, but they are reluctant to give up the benefits in their hands, so they simply do not do anything and print a large number of paper money, after all, paper money is not as precious as paper money.
For a long time, Zimbabwe's clothes and clothes got better, everyone had a salary, and businessmen had new stocks. But what happened next, everyone knows very well, as inflation increases, the currency becomes cheaper and cheaper, a truckload of cash, not even a cabbage can be bought, Zimbabwe has already doomed its fate.
Crazy money printing, like a pair of twin brothers, is annoying. Love, because it can indeed delay the onset of a crisis, such as building a with wood to keep the raging waves out; What's even worse is that enough energy has been accumulated, and once the wooden structure is breached, the power will be multiplied enough to destroy a country.
In China, for example, a coin is equivalent to the purchasing power of a dime, and a coin can be used for a meal here. But in the later period, the paper money was overcirculated, resulting in a large amount of paper money, and Yuan Datou, who was a few hundred yuan, could not afford to buy a pack of matches, and the villagers were dying of starvation.
From this point it can be seen that the act of printing money in large quantities is like sounding the death knell for poor countries. To put it bluntly, it was in this situation that ** had to put a large amount of money on the market. They look at the problem from a different angle than ordinary people, ordinary people don't care who the emperor is, they only care about how their country can live well, and they can live well.
But the ruler still has to keep his position, if he is ousted, no matter how rich the empire is, it will not affect them, and the best result is just an extra scar on his head, or spend the rest of his life in prison.
As a result, economists often associate inflation with monetary contraction, a common political tool. Because of the skyrocketing prices, everyone's money disappears unconsciously, and just eating and eating occupies everyone's net worth.
When everyone is helpless, when everyone comes together and builds a new **, the money will be tightened, and when the time comes, everyone will realize that the money will be refreshed again, and then, everyone will fall into a crazy struggle. But there are also some people who are skeptical of the monetary policy of the United States, because they have been printing money during the financial crisis.
The United States is a special case, because because of its global credit system, many countries will bear it, which is like a fire, pushing all the risks to a new level.
Second, the United States will print money and look for competitors to distract the public, and if it does eliminate competitors, the benefits for the country will offset the inflationary pressures caused by the large amount of money printed. Therefore, it is impossible for a poor country to have a backing behind it and launch attacks on other countries, as the United States does, so printing money on a large scale is not a wise decision.