It was easier to conceptualise when currencies were linked to the gold standard. So, if a country had 200 kgs of gold in the central bank, and 200 bank notes, then each bank note would represent 1kg of gold. As soon as you print 2,000 bank notes, then each bank note would only represent 100gr of gold, and so on.
Now, currencies are floating so that they reflect their position in the market, rather than how much their country has in gold reserves, and countries are a lot freer and more able to manipulate their currency to their own ends.
At the end of the day, there are finite resources - there are only so many ferraris in the world, so even if a ferrari cost £100,000 and everyone had £100,000, there would still not be enough ferraris to go around. If the price of the ferrari is then only based on its market value (that is, how much people want it and how rare it is), it will then go up in price. The rarer something is, the more valuable it is. You have crazy examples of this in history, like in around the 18th Century (I think) when the Dutch went NUTS over tulips, and the price of tulip bulbs became extortionate, like £thousands for one tulip bulb. Thinking of it now it's just weird.
One of the reasons why Standard and Poor downgraded the US is because there is too much political interference and posturing going on, which is damaging their economic recovery (like before they raised the debt ceiling they were all arguing and prattling about, when all along they all knew they had to raise the debt ceiling, or they were screwed).