How can there exist more debt than there exists money?
How can there exist more debt than there exists money?
ponzi
You know why
Stop sounding anti-semitic or i might have to inform the authorities. You are attending the next BLM-rally, right?
economy runs on debt. If there was 0 debt the monetary system would collapse
because you can owe someone something that doesn't exist yet. you can also owe someone money that you don't have yet.
So there's pressure for goys to collateralise things that weren't meant to be for sale...
>i have $10
>i lend 5 people $10 each
>there's now $50
fpbp
The wind only blows when there's a difference, the have and have-not, a void to fill, contrast. No wind, no power to influence.
The money itself is technically debt
What would happen if every country paid off its entire debt to every other country? How do multiple countries simultaneously manage to be owed debt from and be indebted to one another; why not just subtract the debt from one at the very least?
Jews
fpbp, fractional reserve banking and fiat currency is a scam to make suck the value away from the poor to make the rich richer, to keep those with power in power, there's a reason they want it to be inflationary
>fiat
>a formal authorization or proposition; a decree
>decree
>an official order issued by a legal authority
>Government: "Your dollar is worth what I tell you it's worth!"
>Federal Reserve: "Money printers go BRRRRRRR hahaha"
all this seethe and I still have yet to see a non-moral argument for why money should be treated as real
market activity is subverted and speculation places capital in all the wrong places
look at the history of any fiat currency that has ever existed
if you're not just baiting you really need to DYOR
How does it even make sense to lend 50 bucks when you only have 10 as you specified?
Double entry accounting. When dollars are created by the banks they are a liability on their balance sheet.
These are offset by the loan of the borrower, an asset to the bank. Assets = Liabilities
Borrower owes principal + interest. The interest was never created at loan inception.
Fractional reserve banking. If I take out a loan for $1M and buy a house, the house seller takes that $1M and deposits it into his bank. The bank then sets aside the reserve ratio and they are able to loan out that amount again. So there is a multiplier effect to loans on the money supply.
Always remember the importance of Exter's pyramid. Cash is a claim on goods. Bank deposits, stocks, and bonds are a claim on CASH. You can keep a unit of account such as bank deposits and it's really not a problem unless everyone comes looking for the same value at the same time. This is most definitely going to be a source of extreme precarity in the coming decades.
because the debt grows every year. in britain its literally been growing year on year since 1694 (although i believe there was one early king who temporarily paid britain's debts off).
because the economy grows
money IS debt guy
can we please stop it with the antisemitic posts?
Playing games with fake money has drastic consequences.
asking a lotta questions there, goyim
this. fiat debt dollar pyramid ponzi.
Stop asking questions
Go into your bank and ask them this question.