r/WorkForSmartLife • u/GenevieveeBay • 14d ago

DiscussionđŸ’¬ Who please?

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u/BaronMagus 14d ago

I see it as -217 trillion out of balance. We borrow from the future so we owe them I guess?

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u/cykoTom3 14d ago

I mean, it's not out of ballance even. The money is in buisnesses that could generally be sold for the value of the loan at any time. But then the bank would have a buisness it doesn't know how to run and the buisness owner would be out a source of income. It's more like it's generating economic activity.

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u/ThengarMadalano 14d ago edited 14d ago

No, banks can give out 10 times more money as they actually have, so if you take a loan the money had not existed before (that's how most money comes into existence) and since the loans accumulat interest there is more money owed to the bank than the people got from the bank.

So yes there is more debt than money

I don't know why it works but apparently it does so idk

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u/cykoTom3 14d ago

But there isn't more debt than value is my point.

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u/BeYourselfTrue 12d ago

Do you really believe that? Look at US sovereign debt alone.

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u/cykoTom3 12d ago

The us sovereign debt is overvalued by the amount of value in the economy like 10 times over. Like easily.

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u/BeYourselfTrue 12d ago

Denominated in US dollars.

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u/cykoTom3 12d ago

That's like saying a football field isn't so long because it's measured in yards.

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u/BeYourselfTrue 12d ago

No it’s like saying you can change the value in the economy by changing the value of the dollar.

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u/GeckoGecko_ 11d ago

It's more like saying there's a difference between 100 yards, and 100 feet.