By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Ergh, no you can't. Money can't just be taken out of the economy, well, it can, but it has huge negative effects.

If you take a large some of money out of the economy, then someone, somewhere a long the line will suffer. If money is taken out of the economy, consumption will go down, followed by demand, employment and incomes.

By borrowing money from other countries, you can basically slow down this effect because you're taking smaller chunks of money out of the economy over a longer period of time.

People seem to think that a country's money is just a big stock pile that can be taken from or added to at any time without consequence. It's not, an economy is constantly flowing, and taking something out of it damages its flow.

I made a post some time ago trying to explain some of the basics of an economy and how it works (without getting into any of the controversial stuff). I'll try and dig it up for you guys.