TIME TRAVEL

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A TRIP BACK TO THE PAST What would you do if get a time travel machine? If it's only one chance and where would you want to go? the Past? or the Future?  Well, I would definitely choose to go to my past, the happiest days ever in my life that I won't get back again. Those were the most unforgettable memories until the last minute of death. When I think back on those days, tears well up in my eyes as I recall all the wonderful memories one by one in a nostalgic sequence with a sad song playing in the background. Seriously that's a terrible feeling ever like a sad ending movie. So, I will narrate a story about it.  After graduation, our little boy joins a company and is completely clueless as to what he will do. He was onboarded and had to go through a three-day induction program. Having fear in his mind at first, everyone was friendly even before the end of the third day, which made him feel a little more at ease.   Everything that happens next is entirely not in his ...
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WHY NOT COUNTRIES CAN'T JUST PRINT MORE MONEY?

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WHY POOR COUNTRIES CAN'T JUST PRINT MORE MONEY AND BECOME RICH?

Well, are you also one of them wondering if a country is poor, why can't they just print more bills to overcome poverty? I was one among them...  
This is a common doubt in everyone's mind and So to get this clear, 

Let’s discuss with an example:

Suppose there are only 2 people residing in a country with an income of Rs 10 p.a and the only good produced in the economy is rice.
For example, the total goods and services produced in the country is 2 kg of rice. Now to buy 1 kg of rice, one has to pay Rs.10 per Kg.

Imagine all of a sudden government starts printing more money, and the income rises from Rs.10 to Rs.20, but the supply of rice remains the same as 2 kg. With more cash in hand, the demand for rice has gone up, and the price of 1 kg of rice has increased from Rs.10 to Rs 20.

In both scenarios, the quantity produced hasn’t changed, (2 kg of rice) but the price has been changed sharply (from Rs.10 to Rs.20) due to excess money printing. So printing of money should always match the total production of goods and services in the country or else inflation can destroy the economy.

As I quoted above in the example, Same way, when a whole country tries to get richer by printing more money, It leads to rising in prices which can ultimately lead to "hyperinflation"

HYPERINFLATION IN ZIMBABWE

Imagine a situation, when everyone carries millions of bills to a supermarket just to buy groceries. Terrible, right? Actually, it happened when Zimbabwe was hit by hyperinflation, in 2008, prices rose as much as 231,000,000% in a single year. In simple, Imagine, an egg that cost 1 zimbabwe dollar before the inflation would have cost 231 million dollars after a year.

WHEN DOES IT WORK OUT?

But it is not true that a country can never become rich by printing more money. This can happen when it doesn't have enough money to start with. Let's assume there is a shortage of money, businesses can't sell enough because they can't pay their workers and people won't buy anything as they don't have money and they cant borrow banks because they don't have either. In this case, printing more money lets people spend more, which lets companies produce more, so there are more things to buy as well as more money to buy them with.

US AND ITS POWER

At the moment, there is one country that can get richer by printing more money, and that’s the United States. This is because most of the valuable things that countries around the world buy and sell to one another, including gold and oil, are priced in US dollars. So, if the US wants to buy more things, it really can just print more dollars. Though if it printed too many, the price of those things in dollars would still go up.

Hope everyone who reads this blog is getting clear and found it very useful.


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