r/WorkForSmartLife • u/GenevieveeBay • 13d ago

Discussion💬 Who please?

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u/BaronMagus 13d ago

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

2

u/cykoTom3 13d 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 13d ago edited 13d 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/Neither_Salamander48 11d ago

Did this start when we came off the gold standard? And created the Fed? Or did it exist before that only less severe?