MyNews24 is a user-generated section of The stories here come from users.

Comments: 9
Article views: 18
Latest Badges:

View all DebunK's badges.

Money is only Paper

18 February 2013, 14:00

We know (or have been told) that America is in the Red and China is in the Green; financially speaking of course. Same goes for the countries in the Euro zone: some are in the green, others in the red. In other words, some have affluence or real money while others, who are in debt, only have printed money.

Not being a financial person I am fascinated by the machinations of the money energy!?

Take the following speculation:

A country has a huge debt base. To overcome its repayment responsibility, it raises its deficit base so as to allow for the printing of more money which also allows for the borrowing of more money.

The monies of a country is regulated and issued by its Reserve Bank.

The company that I work for gets its operating money from a Commercial Bank who in turn is supplied by the Reserve Bank.

Does this not imply that, because of the high debt base of the country, the printed money I receive as a salary is not worth much if at all (here I am not referring to the inflation factor)?

How does negative money turn into a positive entity just because it exchanged hands?

If America’s negative money is of a larger proportion than that of China’s positive money, does that not mean that the negative difference turns China’s real money into baseless paper money?

Similarly, I have been told that SA has positive reserves that can be used to offset its national deficit base. Money that can be used to bail out the economy should the negative offshore effects of all the negative ‘developed’ economies reach our shores. This is good news, yes?

But does not the same mathematical principle apply: if a negative is higher than the positive, the difference is still negative? Thus, are we not fooling ourselves into believing that all is Ok in the land of finances?

What intrigues me further is the fact that when Uganda’s Idi Amin tried the same stunt i.e. he wanted to print more money, he was shot down by the developed world!?

But I must be missing something for investors (people of whom I presume know what they are doing) are still throwing their money around...and getting richer by the day (an interesting aphorism seeing that it is mostly negative paper money that they are playing with.)

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Joshua Glenny
Ballito Drought Solution

I live in Ballito and I have "made a plan" to reduce my water bill. I have installed 3 x 2200l rain water harvesting tanks. Read more...

0 comments 750 views
Submitted by
Shelly Bowling
The Oscar Pitorius through the ey...

The fact forensics determined OP was on his stumps rather than his prosthetics when he fired the gun is the most significant finding. Read more...

0 comments 289 views
Submitted by
Eric de Castro
Post Office clowns

Do we still have a Post Office? If so, what are they doing? When last have you used the Post Office’s postal service, or been inside a post office building? Read more...

0 comments 273 views
Submitted by
Stu Cen
Affordable Student Housing

If you’ve just been accepted a place at university, you’ll need to find somewhere to live – quite possibly in a place you know very little about.  Read more...

0 comments 279 views
Submitted by
Zara Khan
7 Tips For Becoming A Better Pilo...

The aviation industry is amongst the most lucrative ones to work for, no doubts whatsoever about that.  Read more...

0 comments 150 views
Submitted by
Ananias Ndlovu
Big win for Makgoba family

The community of Mamphoku Makgoba reacted with jubilant after a judge ruled in their favour in the Northern Gauteng High Court Tuesday, Queen Mother Mantsha Makgoba jumped with excitement when Justice Mabuse ruled that current members of Mamphoku Makgoba Community Trust must resign with immidiate effect and elections of new members be conducted within 30 days. Read more...

0 comments 104 views


E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

Interactive Advertising Bureau
© 2015 All rights reserved.
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.