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Why a country needs to borrow money when it can make money with money machine?

Every country has its own central bank.They can make money as according to requirement of a country.Then why a country needs to beg or borrow money for its development when it can make it own money with the help of money machine?Is there any rule in economy that prevents a country to make its own money?

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7 Responses to “Why a country needs to borrow money when it can make money with money machine?”

  1. *♥* donna *♥* said:

    If every one just printed money, money would be worthless. I think its something to do with gold reserves, they can only put into circulation the cash amount of the gold they own or something like that. Don’t quote me on that.

  2. Jal.666 said:

    Lol, I remember asking my dad that same question when I was younger.
    The market would be flooded and the currency worthless.
    Think of it like this.
    If you have a collection of something, anything really, lets say philately(stamp collecting) and you have a rare stamp that hardly anyone else has. This stamp will be worth alot of money.
    However if you have a very common stamp that everyone has, then it’s virtually worthless.

  3. Marco M said:

    By “money machine,” I assume you meaning a printing press? Yes, a nation can print money, but that money must be “backed” or guaranteed by something of value — otherwise it’s just paper, and no one would haveconfidence in it. This happened during the American Civil war of the 1860s. The Confederacy (the South) printed money with nothing to guarantee it and “Confederate money” became a synonym for “worthless.” . The United States has gold in reserve at Ft. Knox, Tennessee.

  4. kittycat said:

    This is what Zimbabwe does and it has not helped them, on the contrary they now have absurdly high inflation.

  5. Ted said:

    Just creating more money creates more inflation and messes up the economy.

  6. Doctor Deth said:

    Yeah there is a rule – just printing money for the sake of making more money available makes all money worthless – Nazi germany – in 1930’s – it cost a million marks to buy a loaf of break – today – a million marks is a couple of hundred thousand dollars – the Nazis just printed money – you needed a wheelbarrow full to buy a loaf of bread

  7. saved_astronaut said:

    I used 2 c those machines advertised in magazines when I was little, but I think it’s ONLY 4 entertainment. personally, I wouldn’t mess w/ it, cuz it’s messing w/ the govt. do u realize just how many ppl have reportedly passed phoney $$$? I’d never seen any of it cuz banks/stores have ways of making SURE it’s real. they have special markers 2 run over it & if it’s fake it shows.




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