I no longer believe in the theory that inflation will lead to increase interest rate. After witnessing so much changes to the global economy - labour can be exported via internet, China becoming the world factory, toilet papers being sold as derivatives, fishermen selling their future catch...global economy become a real monopoly board game.
These are all easily understood.
Internet makes labour highly mobile
China does it cheaper.
Future catches has value.
As long as the players pakay the "monopoly money", they can continue to print.
Any government can print money. Ours don't suka suka print like USA without corresponding growth in the economy, USA does it.
If the economy does not expand with more money printed, why would that not lead to inflation?
And if inflation sets in, how would banks encourage savings without higher interest rates with inflation?
Inflation will not affect them because a huge chunk of "monopoly money" had been wiped out in 2008.
The physical money was not wiped out. M1 supply increased vastly from then till now.
The banker is merely reprinting so as to replace the lost notes in order ensure that all the players have enough notes to continue with the game. The reprinted notes flow unevenly to the players. Those given with more money got worried and tried all means to secure their value, leading to so-called "inflation" of selected goods e.g. property, gold.
The more printed more than replace what was lost.
Like I said, money don't get wiped into thin air unless you burn your money. would you burn your money on a regular basis if at all?
Printing should slow down or stop when enough notes flow back to their own players under the guise of employment - not important if it is some non-value added fictitious economic activities like "re-training" (we are pretty good at this) or repair and reconstruction. I think a collapse will only happen if they failed to create so-called employment and some big players decide to junk the monopoly money. Otherwise the game should continue and all the world leaders will be most happy to scratch each others back. Just my layman view.
I don't think you have a grasp of how an economy works my fren. Thats sentence alone tells us that.