Printing Money

[f22raptor]

So this lockdown is happening after Tito Mboweni has already allocated money to each department. Obviously most departments are going to need more, especially Departments of Health, Police, Small Businesses and Defence.

I don’t know the specifics but let’s assume they need

• Department of Health – R30 billion
• Department of Police – R9 billion
• Department of Defence – R15 billion
• Department of Small Business – R5 billion
• Total = R59 billion

South Africa needs another R59 billion to get over this lockdown smoothly. The budget announced on the 26th of February was so tight such that Tito resisted increasing taxes with all his energies.

SOLUTION

In the first quarter of 2018, R1.7 trillion was circulating in South Africa. This is the total value of notes, coins, and accessible funds.

For SA to come up with the extra R59 billion, would it not be wise to print it. Yes, print R59 billion and give it to the departments that need it. Then remove R59 billion from circulation to prevent inflation.

 

[LaraC]

How do you remove R59 billion from circulation?

 

[3WA]

How do you remove R59 billion from circulation?

I'll keep it safe.

 

[LaraC]

I'll keep it safe.

Spend it, before it is gone.

 

[phly]

Printer goes Brrrrrrrrrrrr

 

[Inn3rs3lf]

Yeah, print it. Let our currency go down further.

 

[saturnz]

ah yes printing money, fun stuff

 

[saturnz]

Yeah, print it. Let our currency go down further.

the US I think is going to "print" $6T, thats a T at the end, for trillion, or one million million

 

[LaraC]

the US I think is going to "print" $6T, thats a T at the end, for trillion, or one million million

They have an economy that support it.

 

[rietrot]

That's not how it works. The Reserve bank can't just give anyone money. Or take it away.

 

[saturnz]

They have an economy that support it.

you are aware the current bail out is multiple times bigger than the previous three QE interventions all added up

the US produces very little these days, and when they do, its rather expensive, they are an import nation relying on printing reserve currency, their days are now numbered

 

[Inn3rs3lf]

They have an economy that support it.

It actually doesn't really matter if it does or doesn't. The fact that they are doing it, will weaken their currency.

 

[rietrot]

They have an economy that support it.

Not really, they have rolling budget deficits, and they need more debt to pay back old debt.

The Dollar is still just the best out of a bad bunch of useless paper, so there is more demand for it.

It's all about supply and demand. (Trust in the system)

 

[rietrot]

It actually doesn't really matter if it does or doesn't. The fact that they are doing it, will weaken their currency.

All relative. Everyone is printing so everyone's currency weakens.

 

[Thor]

Can't print bitcoin

 

[Dan C]

How do you remove R59 billion from circulation?

Invest in Bitcoin

 

[rietrot]

Can't print bitcoin

You can mine it which is basically the same thing.

 

[SoldierMan]

They have an economy that support it.

And Japan and the ECB. Only certain countries seem to be able to get away with it.

One day though the US will reap the 'rewards' of printing all that money.

 

[Inn3rs3lf]

All relative. Everyone is printing so everyone's currency weakens.

Doesn't disprove the point, though.

 

[f22raptor]

How do you remove R59 billion from circulation?

Don't banks put their keep their money at the reserve bank?