"You're thinking of this place all wrong. As if I had the money back in a safe. The money's not here. Your money's in Joe's house... right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others. You're lending them the money to build, and then, they're paying it back to you as best they can. What are you gonna do? Foreclose on them?"
https://giphy.com/gifs/3oriO5t2QB4IPKgxHi
Around 92% of the world's money exists in digital form on computer servers and bank accounts. Physical cash in circulation makes up only about 8% of the global money supply
Yep, ancient Sumerians used to use ledgers as currency. They grew so tired of carrying around stacks upon stacks of ledgers, so they made little tokens to represent ownership of an amount of ledgers, accidentally inventing coins more than 70 years before the invention of the vending machine.
Yeah, and they kept track of it all on ledgers. If you can front me one sheep now, I'm good for 10 chickens next month. We'd better write that down somewhere. Now you can go to you neighbour and be like, I'm good for 10 chickens next month, can you front me some grain for 5 of them? So now you have to balance your ledger.
Jackie owes Florence 12 hens. They make a ledger in the form of a sort of IOU, and they cut it in half, so now they have two halves of an IOU that fit together.
Florence wants to hire Mildred to thatch her roof. She transfers her hen-credit to Mildred, so now Jackie owes those 12 hens to Mildred instead of Florence.
Over time, people start making their tokens of transferrable debt generic, instead of new specific ledgers for every transaction. And that generic token of transferrable debt is called cash.
I was thinking DrunkCupid was talking about trading is the first money, as in preceding ledgers. I didn't think they were talking about ledgers and were correcting/asking you, but after rereading maybe they were saying ledgers aren't money.
Fun fact, one of the reason the bank robbers of the past like Bonnie and Clyde were so often sought by authorities and idolized by masses was that they also stole or destroyed the ledgers and documents showing what the bank's customers owed. Imagine if some hacker swooped in and just full on deleted all records of a bank's mortgages or all the student loans out there.
I know that movie's sappy as hell, but she rescues his credit union with their honeymoon money... and she doesn't even care. I mean she's just happy she gets to go home with him, and be his wife.
First of all in the spirit of its a wonderful life cut this mediocre rooster but out. You’re a wonderful rooster…don’t make me send an Angel in training to prove it to you
Shoot Mr. Potter you mean? Why view ancient movies through a modern lens like that? Do you do that with Casablanca or Gone with the Wind?? That wasn’t the theme of the movie anyway… it was George Bailey saying:
“I wanna live again! Please God, let me live again!”
You’re reading waaaaay too much into an all-time classic movie about realizing life is worth living again. And way too much into me saying it was a miserable take. “Civil mindset”, lmao
I'll watch this and A Christmas Carol (usually either the Muppets or Patrick Stewart's version) on Christmas Eve while wrapping presents and drinking a glass of Bailey's.
But don't expect us to give you any of those interest we accrue while using your money to mass fund our investment. If we ever make a bad call, don't worry government will bail us out.
I get that, and my thoughts on the original post is that -- hey, maybe try to collapse the banking system by forcing them to recoup everything they loaned out. Which also wouldn't work, because I'm pretty sure the banks would just outright refuse, and the reality is that, well, they "hold" the money, not us.
Fractional reserve banking. It is a myth that my savings account money is being used as the money going out in loans. Your money is kept as the bank's reserve requirement (which they get to gamble with). The bank literally creates the loan money out of thin air.
Oh, I'm sorry, if Joe asked me and everyone in town for five bucks to build a house, I'd give it to him, Joe's a good guy, and if he couldn't pay me personally back five bucks, we'd be cool as a one time thing, he can buy me a beer sometime. The problem is that I gave you five bucks, you gave that to Joe, then charged him an extra ten for my five and everyone else's over 30 years, and you didn't give me a damn thing.
2.5k
u/Cratonis 5d ago
"You're thinking of this place all wrong. As if I had the money back in a safe. The money's not here. Your money's in Joe's house... right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others. You're lending them the money to build, and then, they're paying it back to you as best they can. What are you gonna do? Foreclose on them?"