Why do We Print more Money? (Robert Nielsen)

Printing money seems like a no-brainer. Surely it’s extremely obvious that printing money is a recipe for disaster that will result in hyperinflation. Surely the obvious action is to not print money and therefore avoid inflation. Yet every year, every country prints money. Why? Surely the money supply should be fixed. What possible reason could central banks have for risking massive inflation? Why do we print money?
The first and most obvious reason for printing money is to replace old notes in the system. Notes get worn down through use, so it’s necessary to print new ones to replace them. Take a moment to think through why we do this and what would happen if we didn’t. Businesses would start to suffer from a cash flow problem. It would be harder to pay bills and wages, and spending as a whole would slow down. As spending is what drives the economy, this means the economy would slow down. In this sense, printing money is a bit like oiling the gears of an engine, it helps the whole system run more smoothly.
This leads onto the second reason we print money. This is because a growing economy requires it. Think about it, if the economy is getting bigger (through economic and population growth) then there is a greater demand for money. As there are more people, there are more customers. As they are more goods being produced, there must be an increase in the amount of money to buy these goods. If the money supply does not increase, then the economy creates bottlenecks which act as a brake on growth.
Most people assume that printing money automatically leads to inflation without thinking through the steps of how this happens. If you do, you realise there can be exceptions to this rule. Let’s say the government prints a lot of money and puts it into the bank. The bank then lends this money out to people who spend it. Here’s the crucial part. Inflation will occur if demand exceeds supply. If there are more people willing to buy the goods than the shops can sell, then businesses will raise their prices.
However, it should be clear that there is a big hole in this logic. This will only hold true if businesses are at or near full capacity. If there is significant unemployment of resources, then there will not be large amounts of inflation. If a business is struggling and near bankrupt with a large amount of unsold stock, then an increase in demand will not lead to a price rise. If factories are not running at full capabilities but instead are in a slow period, then they can easily increase production in the short run without increasing prices. In other words, if the economy is not at potential output, then printing money may not lead to inflation.
This describes our current situation. The economy is not at full capacity, most businesses are in a slow period. Inflation is very low and demand is weak. Hence the large increase in the money supply in America (called Quantitative Easing) has not led to run away hyperinflation despite the warnings of Austrian Economists. This is because the economy is so weak that it can absorb the increase without resulting in inflation. Even more important is the role of the banks. As I mentioned before, newly printed money is usually deposited in banks. However, if banks are near bankruptcy they will be unwilling to make new loans, so the money supply may not actually increase if money is printed. Why do it then? Well if the newly printed money is held as deposits, it helps the banks starve off insolvency and collapsing, which would bring the rest of the economy down with it.

Why are Japanese Facing Deflation Crisis(Wikipedia)

Deflation started in the early 1990s. The Bank of Japan and the government tried to eliminate it by reducing interest rates and 'quantitative easing', but did not create a sustained increase in broad money and deflation persisted. In July 2006, the zero-rate policy was ended.
Systemic reasons for deflation in Japan can be said to include:

1. Tight monetary conditions. The Bank of Japan kept monetary policy loose only when inflation was below zero, tightening whenever deflation ends.
2. Unfavorable demographics. Japan has an aging population (22.6% over age 65) that is not growing and will soon start a long decline. The Japanese death rate recently exceeded its birth rate.
3. Fallen asset prices. In the case of Japan asset price deflation was a mean reversion or correction back to the price level that prevailed before the asset bubble. There was a rather large price bubble in stocks and especially real estate in Japan in the 1980s (peaking in late 1989).
4. Insolvent companies:  Banks lent to companies and individuals that invested in real estate. When real estate values dropped, these loans could not be paid. The banks could try to collect on the collateral (land), but this wouldn't pay off the loan. Banks delayed that decision, hoping asset prices would improve. These delays were allowed by national banking regulators. Some banks made even more loans to these companies that are used to service the debt they already had. This continuing process is known as maintaining an "unrealized loss", and until the assets are completely revalued and/or sold off (and the loss realized), it will continue to be a deflationary force in the economy. Improving bankruptcy law, land transfer law, and tax law have been suggested (by The Economist) as methods to speed this process and thus end the deflation.
5. Insolvent banks:  Banks with a larger percentage of their loans which are "non-performing", that is to say, they are not receiving payments on them, but have not yet written them off, cannot lend more money; they must increase their cash reserves to cover the bad loans.
6. Fear of insolvent banks:  Japanese people are afraid that banks will collapse so they prefer to buy (United States or Japanese) Treasury bonds instead of saving their money in a bank account. This likewise means the money is not available for lending and therefore economic growth. This means that the savings rate depresses consumption, but does not appear in the economy in an efficient form to spur new investment. People also save by owning real estate, further slowing growth, since it inflates land prices.
7. Imported deflation: Japan imports Chinese and other countries' inexpensive consumable goods (due to lower wages and fast growth in those countries) and inexpensive raw materials, many of which reached all time real price minimums in the early 2000s. Thus, prices of imported products are decreasing. Domestic producers must match these prices in order to remain competitive. This decreases prices for many things in the economy, and thus is deflationary.
8. Stimulus Spending: According to both Austrian and Monetarist economic theory, Keynesian 'stimulus' spending actually has a depressing effect. This is because the government is competing against private industry, and usurping private investment dollars. In 1998, for example, Japan produced a 'stimulus' package of more than 16 trillion Yen, over half of it public works that would have a quashing effect on an equivalent amount of private, wealth-creating economic activity. Overall, Japan's 'stimulus' packages added up to over one hundred trillion Yen, and yet they failed. According to these economic schools, that 'stimulus' money actually perpetuated the problem it was intended to cure.

練習2 に

肉を　食べました。後で　友達家に　勉強しました。西に　庭が　あります。この庭を　とても　素敵です。来週の日曜日に 友達の誕生日です。荷物が　買いたいです。（L13）

練習１ さ

今は　二十二歳です。魚が　とても　好きです。（L８＋L9）しかし、砂糖が　あまり　嫌いです。毎日、魚を　食べます。（L6)これは　私の作文です。（L8）部屋に　雑誌が　あります。(L10)先は　雨でした。（L12)傘を　さすしますた。寒いですね。後で　散歩しましょう。

坚强的信心

在你最悲观最失望的时候，
那正是你必须鼓起坚强的信心的时候。

你要深信，
天下没有白费的努力。
成功不必在我，
而功力必不唐捐。

鸡蛋从外打破是食物，
从内打破就是生命，
人从外打破是压力，
从内打破就是成长。
人生如路，
只要耐心走，
总会遇到繁华的风景。

是奇迹还是努力的成果

昨天下午，
是下雨天，
我等成绩公布到睡着了。
然而没过多久，
YH 就来电通知了。

我从睡梦中惊醒，
带着战战兢兢的心情，
用了手机一个接一个慢慢看。

第一个，
是Mathematics For Engineering 2，
还竟然给我及格。
我的心情雀跃不已。
我在想，
是真的奇迹吗？
我怎么算也算不到及格的可能。
或许是我潜意识写的”垃圾堆”救了我吧。

其它的四科，
也顺利及格。
虽然成绩不是很好，
但是目前已足矣，
这是自己付出的成果。
当然，
我会再努力拚更好的成绩，
毕竟在鬼门关徘徊的感觉很不好受。

经过了这个学期，
也摸清了UTAR及格的底线。
也让我好好准备之后走的路。

大追捕-张家辉

偶然间看了一部，
几年前张家辉的作品，
大追捕。

大追捕，
它以爱为核心，
在过去与现在的时空交错中表现一个父亲的伟大；
它没有将匪徒绝对邪恶化，
而是突出强调了他的人生悲剧和善良本性。

在电影的前半段，
观众扮演了全知全能的角色，
故事中的警察不知道凶杀案是谁干的，
但是观众从张家辉的一系列诡异的行为中可以推断他就是凶手，
唯一不明白的是，
他为什么要这样做。

绝妙的是，
之后的剧情发展使观众对自己的判断感到懊恼，
原来张家辉并不是真正的凶手。

个人非常喜欢这部电影，
张家辉真的很棒！

--

怎么样的爱情，
才经得起时间的考验？

很多人爱到吵架所以分手，
有些人爱到平淡也分手。

其实真正陪你到老的，
是那种没太多意外，
也没有当初的心跳，
却无论如何也不离开你的人。

从激情到亲情，
从感动到感恩，
从浪漫到相守。
时间越久，
越不愿离开你，
这才叫爱人。

过错

做事是经常的，
出错是难免的。
别把自己扮成圣人，
别用完美来苛求，
只有略去过去的败笔，
才能书写未来的华章。

我们的错误在于，
面对过错不敢正视、
不愿承认、
不思改正，
而是文过饰非，
用另外的错来遮掩、
来辩解、
来衬托，
结果错上加错，
越错越远。

回头多了，
路就难走；
放过了曾经，
后面才有海阔天空。

年龄不是界限

任何时候，
都可以开始做自己想做的事，

希望，
你不要用年龄和其他东西去束缚自己。
年龄不是界限，
除非你自己拿去为难自己。

人生需要规划，
但是意外总是会到，
与其强求某事某地达到某个目标，
不如顺其自然。
当然不是说听天由命，
而是听从心的方向，
去做到最好。

不要等

有些事情，
只有经历了，
才有穿透心扉的体验；
曾经的人，
只有从心底放下了，
心灵才会真正地解脱。

没有哪件事，
能够一直捆住你的手脚；
没有哪个人，
能够成为你的永远。

所以，
想做的事，
只要有能力做，
那就不要等，
不要害怕失败；
想付出的爱，
只要觉得可以，
那就大胆些，
不要留下遗憾。