I recently came up with the idea that all the worlds currencies with central banks may be being used as a way to steal value from people who give value to them. And no, im not talking about inflation (priting/supply demand), interest rate or debt.

Now let's say there's currency that has a very stable value, dont go up too much, dont go down too much. If you start printing, the currency go down in value. That's the situation i suppose the dollar is right now, dont go down or up too much.

What if the dollar should be always going up in value, like bitcoin is right now, but the central banks print just enough to keep the unit having the same value. What if a dollar that can buy one apple today, and one apple tomorrow, should be buying three apples tomorrow.

Suppose when the dollar is about to go up, instead of being stable, the central banks print just enough to keep the value the same, defrauding all dollar owners from value.

Is it possible that the dollar is almost always going up in value, as opposed to being stable, but all that value is being removed from individual dollars by printing (and they getting insanely wealthy by accumulating commodities or dollars)?

  • $\begingroup$ What you're describing is the situation in many 3rd world countries where the governments simply print more money rather than attempting to balance spending with tax revenue. The thing that prevents this in (most) 1st world economies is that people are monitoring the government's (central bank's) actions very closely and will raise an alarm at any action that doesn't match their political philosophy (whatever it may be). $\endgroup$
    – Hot Licks
    Jan 4 '18 at 1:38

If that were the case, then they would have to print each time more and more money. And this does not happen.

If fact, they usually just print what naturally comes out of circulation (bills get old and coins get lost) and enough to have inflation above zero, but not too far from it. (Deflation, as well as excessive inflation, have been shown to cause many problems to an economy.)


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