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There was Talk about the Government asking the Royal Mint to make more money, why havent they followed through with this, to help this country get out of the mire we are now in ?
Heard it on news a couple of weeks ago, since then nothing. sao why dont the royal mint make more money to help, local buisnesses and decent hardworking folk out?
Would it cost more to make more £10, notes etc, Would it leave us in more dire circumstances?
asked in Royal Mint, more, money

vultan answers:

Printing more money doesn't mean that everyone is better off, it means that the money there is is worth less, so prices go up (an item worth £10 would not keep its £10 price tag if £10 was now only worth £7.50). It also means that it costs more to import goods as the pound would be worth less compared to foreign currencies, and given that we import most of our food, this would not help the situation at all.

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wumpus answers:

They may have already taken such action; the Bank of England recently gained the authority to print more money without informing anybody for a month afterwards.
To my mind that's tantamount to fraud; I like the pound in my pocket to be worth a pound, not 90p.
If they devalue the pound, I want to know!

Printing more money might help people in debt by reducing the effective amount of that debt.
But it has a similar effect on people's savings - and people who have saved are just as hard working as those in debt. Probably more so.
Normally these people would be regarded as prudent, but every measure the government has taken so far has hit those who have tried to make provision for themselves, while rewarding those with a frivolous "spend everything" lifestyle.

The net result of printing more money would be to kickstart inflation. The pound is worth less, so you need more of them to cover the cost of production.
The apparent cost of everything goes up so everybody then wants more pounds in their salary to cover it. We're already headed that way anyway due to the high energy costs and profiteering utility companies.

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blacksmith81 answers:

IMO, they're just digging the hole they're in, even deeper.

Where are the assets, to back up this expansion of the money supply? The answer is quite simple, there aren't any. A giant con, just like the Mississippi Bubble in France, during the 18th Century. Where government debt was refinanced, by the issue of the first paper money in Europe. The supply of this money was further boosted, on the back of the presumed value of French territorial holdings, in what is now the Southern US. People imagined this territory to be lush plains, not mosquito infested swamp.

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agentju90 answers:

it's th€ mint with th€ hol€.

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