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goosefr
2y

Idk if this is the right place to ask but I thought Of this and my parents are sick of trying to satisfy me and they said they don’t even know what I’m asking. I know this is an extremely dumb question. Hypothetically, if a plane full of billionaires carrying only cash crashes mysteriously and cannot be found, now that the money is lost, what happens in the economy. Like how do the banks know how much money is gone and what do they do about it. Like mass inflation? Why can’t they just print an approximate Amount of money to fill up the system again, and if so what happens when they find the plane in a hundred years and the money comes back cuz now we have too much? This all came from wondering how they put the new coins with the kings face in without making the economy blow up, like I would assume they take the same amount of money that are idk too old or something and replace it with the same amount of new money but in that case how do they know and what do they do with the old coins now that they’re out of circulation. If anyone can answer my questions pls help. I might reply to your answer with more questions sorry lmao.

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economy

money

help

finance
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  • 2
    2y
    I don't think you're on the right platform.
  • 0
    2y
    Is your general question what happens when one person phsically loses billions in a fire?

    If it's insured the money can be reminted and the insurance would by paid back, so nothing is "lost".

    If it's not insured then I'm not sure. Technically it should be reminted as the money is a physical representation of national wealth, and that hasn't changed, but if the specific ownership can't be proven then maybe it's just absorbed in to the economy. Or it would be a very long court process, but provided the books don't balance to the tune of the amount of money missing it would probably be returned to the family after being reminted.
  • 1
    2y
    I've got one for you. If a fly flies into a lift (elevator), why doesn't it hit the ground when the elevator goes up?
  • 0
    2y
    @ojt-rant 1. I know what a lift is lol and 2 I guess inertia or if it just flew in and hovered it would hit the floor would it not? Idk I’m not a fly in an elevator
  • 0
    2y
    @ojt-rant yeah I got a bit of a better answer but either way it would result in mass inflation or deflation weather or not the money is found or not. In case of a hypothetical fire where an 8th of the money in our global economy is destroyed we’d have huge deflation. They could either fix it by printing more since it’s not going to be coming back or they could just live with everything costing 50 cents like it used to lol
  • 0
    2y
    @Ranchonyx yeah I’m not lmao I saw an ad for it saying it was for stupid questions just it said nothing about code. Either way cool place to learn stuff I’m never gonna use
  • 0
    2y
    @goosefr inertia only works until another force acts upon it. The question is...is the elevator's movement acting as a force applied to the fly? Technically it's not touching the fly, only everything around the fly.......

    .......

    .....

    sleep well everybody
  • 1
    2y
    I’ll test this and get back to u. I will catch a fly, put it in the fridge for a couple minutes put it on a piece of string and walk it to the lift and I will update you
  • 0
    2y
    Supposedly (at least in EU), each paper money printed is hedged by gold stored by the central bank (or stored somewhere I don't know).

    So paper money is basically an equivalent of gold but easier to carry around.

    However I read in the paper sometime ago that this is no longer true and the banks now just keep printing money however they want without any hedge (they said they want to boost the economy/inflation etc.). If they're not careful with this, the value of paper money will decrease and we're fucked.
  • 0
    2y
    Hi there! These are interesting questions. In the scenario you described, if a plane carrying cash crashed and the money couldn't be found, the banks and the government would certainly take notice. However, it's unlikely that the loss of the cash would cause mass inflation, as the amount of money lost would likely be a small fraction of the total amount of money in circulation. As for printing new money, the government does this regularly to control the money supply and maintain a stable economy. Regarding the new coins with the king's face, the old coins are gradually taken out of circulation as people spend them or turn them in to banks. The new coins are minted in the same denominations as the old coins, so they don't change the overall value of the currency. The old coins are typically melted down and recycled.
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