The US is facing the worst ever economic crisis since the Great Depression in 1929. The sub primes, bankruptcy, people losing their jobs etc leads to one term - credit crunch. Well, if there's no money, then why can't they just print some?
I looked up on the internet as to why this can/cannot be done. To put it in a nutshell, the answer I got was "It might work, but the cure would be far worse than the disease. If you create more currency without raising the value of the whatever backs that currency, the value of the currency drops. That’s called inflation — you'll need more and more dollars to buy the same loaf of bread."
Currency, apparently is just a piece of paper (Tell that to the guy who does not have it). This paper is a representation of something. That something is the value backing this currency, which is the strength of the economy of that country, GDP or the reserves of gold, silver etc. Now, if the paper were to be just printed without actually increasing the value of what it represents, then the value of the paper would decrease.
Lets take a simple example. Lets say I have 200 grams of chocolate cake (Its my blog and I love chocolate cake!). I have 2 coupons to share this cake. Then the value of each coupon is 100 grams. If I photocopy the coupons each 49 times, I now have a 100 coupons. Thus making the effective value of one coupon just 2 grams. This should put the more dollars per loaf of bread in perspective.
Well, the verdict, I don't think its worth just printing.
Showing posts with label crisis. Show all posts
Showing posts with label crisis. Show all posts
Monday
(Life)/4 crisis!
This is not an original! I had read this elsewhere and thought this had to be a part of my blog. So here goes…
It is when you stop going along with the crowd and start realizing that there are many things about yourself that you didn't know and may not like. You start feeling insecure and wonder where you will be in a year or two, but then get scared because you barely know where you are now.
You start realizing that people are selfish and that, maybe, those friends that you thought you were so close to aren't exactly the greatest people you have ever met, and the people you have lost touch with are some of the most important ones. What you don't recognize is that they are realizing that too, and aren't really cold, catty, mean or insincere, but that they are as confused as you.
You look at your job... and it is not even close to what you thought you would be doing, or maybe you are looking for a job and realizing that you are going to have to start at the bottom and that scares you.
Your opinions have gotten stronger. You see what others are doing and find yourself judging more than usual because suddenly you realize that you have certain boundaries in your life and are constantly adding things to your list of what is acceptable and what isn't. One minute, you are insecure and then the next, secure.
You laugh and cry with the greatest force of your life. You feel alone and scared and confused. Suddenly, change is the enemy and you try and cling on to the past with dear life, but soon realize that the past is drifting further and further away, and there is nothing to do but stay where you are or move forward.
You get your heart broken and wonder how someone you loved could do such damage to you. Or you lie in bed and wonder why you can't meet anyone decent enough that you want to get to know better. Or maybe you love someone but love someone else too and cannot figure out why you're doing this because you know that you aren't a bad person. One night stands and random hook ups start to look cheap. You want to settle down for good because now all of a sudden that becomes top priority. Getting wasted and acting like an idiot starts to look pathetic. You begin to think a companion for life is better than a hundred in the shack and for once you would not mind standing tall for that special someone which otherwise you had never thought of until now. You go through the same emotions and questions over and over, and talk with your friends about the same topics because you cannot seem to make a decision. You worry about loans, money, the future and making a life for yourself... and while winning the race would be great, right now you'd just like to be a contender! What you may not realize is that every one reading this relates to it. We are in our best of times and our worst of times, trying as hard as we can to figure this whole thing out.
It’s called the "Quarter-life Crisis."
I had read this while I was in college and rubbished it back then. Right now, especially now, I totally connect with it and I’m sure you would as well…
It is when you stop going along with the crowd and start realizing that there are many things about yourself that you didn't know and may not like. You start feeling insecure and wonder where you will be in a year or two, but then get scared because you barely know where you are now.
You start realizing that people are selfish and that, maybe, those friends that you thought you were so close to aren't exactly the greatest people you have ever met, and the people you have lost touch with are some of the most important ones. What you don't recognize is that they are realizing that too, and aren't really cold, catty, mean or insincere, but that they are as confused as you.
You look at your job... and it is not even close to what you thought you would be doing, or maybe you are looking for a job and realizing that you are going to have to start at the bottom and that scares you.
Your opinions have gotten stronger. You see what others are doing and find yourself judging more than usual because suddenly you realize that you have certain boundaries in your life and are constantly adding things to your list of what is acceptable and what isn't. One minute, you are insecure and then the next, secure.
You laugh and cry with the greatest force of your life. You feel alone and scared and confused. Suddenly, change is the enemy and you try and cling on to the past with dear life, but soon realize that the past is drifting further and further away, and there is nothing to do but stay where you are or move forward.
You get your heart broken and wonder how someone you loved could do such damage to you. Or you lie in bed and wonder why you can't meet anyone decent enough that you want to get to know better. Or maybe you love someone but love someone else too and cannot figure out why you're doing this because you know that you aren't a bad person. One night stands and random hook ups start to look cheap. You want to settle down for good because now all of a sudden that becomes top priority. Getting wasted and acting like an idiot starts to look pathetic. You begin to think a companion for life is better than a hundred in the shack and for once you would not mind standing tall for that special someone which otherwise you had never thought of until now. You go through the same emotions and questions over and over, and talk with your friends about the same topics because you cannot seem to make a decision. You worry about loans, money, the future and making a life for yourself... and while winning the race would be great, right now you'd just like to be a contender! What you may not realize is that every one reading this relates to it. We are in our best of times and our worst of times, trying as hard as we can to figure this whole thing out.
It’s called the "Quarter-life Crisis."
I had read this while I was in college and rubbished it back then. Right now, especially now, I totally connect with it and I’m sure you would as well…
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