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Originally Posted by Jerome
Quote:
Originally Posted by Dragar
Yes, that's one cause of inflation. That's why wages typically increase. But that's not circulation, that's creation, and it's not necessarily a problem to an economy.
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If I create a trillion dollars today, that trillion dollars has the same purchasing power as the dollars previously in existence. Once I use that trillion dollars to purchase tangible property that trillion dollars has been added to the economy and all dollars have lost value.
I get more tangible assets if I use the money first. Once the dollars have been introduced into the economy the value of all dollars has been reduced, they buy less tangible property than before the introduction of the new money.
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Meanwhile, you've yet to show where the bank lends more money than it has in deposits. In fact, you're ignoring that part of our conversation (such as it is).
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Are you really not understanding, or are you just screwing around? |
So you have not shown where the bank lends more money than it has in deposits?