Re:U.S. Treasury Data Lab
by manwe150 on Wednesday September 15, 2021 @01:14AM
(#28535504)
The sum of all credits and debits is zero (by the double-entry accounting definition), so seems like this is tautologically true, though not very useful.
The economic principle at work is you can have $1 in the bank and loan that to 7 people sequentially (who each redeposit it), or have $7 and loan it to those same people simultaneously (who each redeposit it), but in both cases the same transactions happened ($7 out and $7 in).
The economic principle at work is you can have $1 in the bank and loan that to 7 people sequentially (who each redeposit it), or have $7 and loan it to those same people simultaneously (who each redeposit it), but in both cases the same transactions happened ($7 out and $7 in).