If there\u2019s one thing everyone seems to know, it\u2019s that the government \u201cprints money.\u201d
But what does this really mean?<\/p>\n\n\n\n
The common image is of printing presses running at full steam in the basement of the Central Bank, spitting out new banknotes to finance public spending. But the truth is more subtle \u2014 and more dangerous.<\/p>\n\n\n\n
Printing money is not just about making paper. It is create purchasing power out of thin air<\/strong>, inflating the monetary base and, often, the illusion of growth.<\/p>\n\n\n\n Today, most of the money that circulates in the economy does not exist physically<\/strong>. It's just a number on the screen: bank deposits, accounting credits, digital records. Issuance occurs in two main ways:<\/p>\n\n\n\n I.e: the State does not print paper \u2014 it authorizes, legitimizes and encourages the artificial creation of purchasing power<\/strong>.<\/p>\n\n\n\n Because, as Mises said,<\/p>\n\n\n\n \u201cCreating money does not increase wealth. It only redistributes what already exists.\u201d<\/p>\n<\/blockquote>\n\n\n\n When the government or banks create money, are not creating value<\/strong>. They are just distributing the existing purchasing power among more monetary units<\/strong>.<\/p>\n\n\n\n The result?<\/p>\n\n\n\n This is the Cantillon effect<\/strong>, described in the 18th century and ignored by much of modern economic policy.<\/p>\n\n\n\n If printing money were the solution, Venezuela would be a powerhouse. When issuing currency, the government:<\/p>\n\n\n\n All without congressional approval<\/strong>, without public debate<\/strong>, without transparency<\/strong>.<\/p>\n\n\n\n In practice, It is the tax that does not pass through Parliament, but weighs on the Brazilian's plate.<\/strong><\/p>\n\n\n\n The belief that the state can \u201cinject money into the economy\u201d and generate prosperity is an economic illusion \u2014 and a moral crime. Rothbard was blunt:<\/p>\n\n\n\n \u201cPrinting money is a form of legalized counterfeiting. But when the government counterfeits, they call it 'monetary policy.'\u201d<\/p>\n<\/blockquote>\n\n\n\n Print money is not a neutral or technical economic policy<\/strong>. And the most serious: It is an act that destroys confidence in money as a means of exchange \u2014 and therefore in the market economy itself.<\/strong><\/p>\n\n\n\n This is why, throughout history, all empires that abused the creation of currency ended up collapsing.<\/p>\n\n\n\n And that's why we started this series. <\/p>","protected":false},"excerpt":{"rendered":" Este primeiro post da s\u00e9rie \u201cImprimir Dinheiro\u201d explica o que significa, de fato, a cria\u00e7\u00e3o monet\u00e1ria moderna. Desmistifica a imagem da gr\u00e1fica estatal e revela os mecanismos de expans\u00e3o da base monet\u00e1ria, o efeito Cantillon e os impactos destrutivos da emiss\u00e3o inflacion\u00e1ria na economia e na liberdade do cidad\u00e3o.<\/p>","protected":false},"author":1,"featured_media":493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAow55rbCw:productID":"","footnotes":""},"categories":[68,363,158],"tags":[42,360,358,361,73,226,98,359,362,166],"class_list":["post-491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economia-e-politica-monetaria","category-o-que-e-imprimir-dinheiro","category-series-speciais","tag-banco-central","tag-efeito-cantillon","tag-emissao-monetaria","tag-impressao-de-dinheiro","tag-inflacao","tag-intervencionismo","tag-liberdade-economica","tag-mises","tag-reservas-fracionarias","tag-rothbard"],"_links":{"self":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/posts\/491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/comments?post=491"}],"version-history":[{"count":0,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/posts\/491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/media\/493"}],"wp:attachment":[{"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/media?parent=491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/categories?post=491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poderemercado.com.br\/en\/wp-json\/wp\/v2\/tags?post=491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\n\ud83d\udcc9 The mechanics of monetary creation<\/h3>\n\n\n\n
Less than 4% of the monetary base in Brazil is made up of paper money.<\/p>\n\n\n\n\n
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\n\n\n\n\ud83d\udca3 Why is this a problem?<\/h3>\n\n\n\n
\n
\n
\n\n\n\n\ud83d\udcca The State as a beneficiary of monetary fraud<\/h3>\n\n\n\n
But the emission serves another purpose: finance the State without resorting to direct taxation or political austerity<\/strong>.<\/p>\n\n\n\n\n
\n\n\n\n\ud83e\udde0 There's no such thing as a free lunch<\/h3>\n\n\n\n
There is no monetary magic. There is forced transfer of wealth<\/strong>, price disorganization<\/strong>, distortion of investments<\/strong> and destruction of private savings<\/strong>.<\/p>\n\n\n\n\n
\n\n\n\n\ud83e\udded Conclusion<\/h3>\n\n\n\n
It is a political, ideological act, deeply unjust.<\/p>\n\n\n\n
To state, bluntly, the myth of wealth created by decree<\/strong> \u2014 and the real price we pay for believing in him.<\/p>\n\n\n\n