Pelican;
You raise a valid point.
So long as work has to be performed, ie wages, at the point of injection
into the community then the money will have the value of that work.
Anyone who doubts this ask the worker.

Actually it would probably be much more worthy than the pixel money
that has got us into the present mess.
The problem in Zimbabwe was I think too much money chasing unavailable
goods. The printing presses ran faster than trucks bringing goods.

Come to think of it, isn't this what the RBA does when it buys bonds from
a bank ? Isn't this the way they shovel money into the economy ?

I think you are right Bazz. Much of it appears as paper transactions even if there is no 'real' money sitting in the bank vault. It would seem much is loaned on projected earnings through loans - all sounds a bit Enronish.

This link is interesting: http://goldnews.bullionvault.com/banks_fractional_reserve_banking_capital_091220082

pelican
Today we do not use very often printed money but electronic one, may be we can complete a project withouht to print money at all.
Is this OK for you or you prefer your hall full of notes?
If you prefer to become millionair in few moments you can do it(current printing machines are very productive) but then every Australian will become millionair, you can not change your economic or social status because you will be millionair, in realy you will be a poor millionair!
Of cause if you tell some one from overseas that your income is many millions of $AUD yearly he will become crazy or may be he will tell you that this notes are good as toilete paper!
THE MOST IMPORTANT IS NOT HOW MUCH MONEY YOU HAVE BUT WHAT YOU CAN BUY WITH THEM.
OK, I will not fight with you! You full up your track with money!
More money you have more goods you buy, more goods you buy more higher go the prices from the goods.
You have created huge problems to employees, they want better wages to keep their standard, better wages mean higher production cost, you destroyed our exports.
Most manufacturies will close, most employee will lose their job,
Jesus or Baraba asked Pilatus to Australians.
pelican, pelican! she destroyed our country!answered australians with one voice!
Keep the track with the new printed dollars for your dream!
You deserve them!
Antvnios Symeonakis
Adelaide

Printing more money?

As Pelican has noted it was investors playing with "pretend" money (playing Monopoly) that got us into this mess. Simply printing off more money without a foundation for value (such as we used to have when the dollar was attached to gold reserves) is like trying to put out a fire with fire. Or if you prefer an alchemistic approach like trying to create gold out of base metals - can't be done.

I am not claiming to know the answer BTW - I doubt that anyone really does have an answer they are confident with. Which is why Turnbull appears such a clown, because he would probably be doing much the same as Rudd which is the reaction by all the western governments to this mess: Bail out.

I do know that unchecked capitalism caused the problem. Just like we need road rules to keep traffic from winding up in gridlocked chaos, we need controls over our monetary system.

For every company that is being 'bailed out' I sincerely hope there are clear strings attached. We can't stop humans from being greedy, but we can make it difficult via government regulation.

Fractelle, I agree that regulation has to be stronger, relevant and enforced.

I don't know the answer either, it was something that came up in conversation the other day.

Antonious, I am not arguing for money to be printed for my own personal use but for infrastructure projects. I understand the inflationary aspect and your comment about what you are able to buy with a much devalued dollar.

The idea I am toying with is the fact that both an OS loan and printing money introduce 'new' money into the economy so what is the difference between the two options the government has in relation to inflationary considerations?

The key I think is to use this money to pay for labour and materials to build - then to withdraw money from circulation. I am no economist and maybe some more savvy people out there can shed some light on this.

If the US and Britian are doing it there may be a strong argument for us to do the same. I suspect the US is doing it for bailouts and I am not supporting that avenue of attack - only for innovation and infrastructure.