How to Prepare for a Recession

Re:How to Prepare for a Recession by DeathArrow on Friday March 18, 2022 @09:42AM (#30722116)

>The "money" in the economy is actually mostly credit

But how can you borrow money to somebody if you don't physically have those money?

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Re:How to Prepare for a Recession by yakubin on Friday March 18, 2022 @10:09AM (#30722462)

The money is created when someone borrows it. But you cannot lend more than a certain multiple of what you have as deposit. This multiple is decided by the central bank.

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Re:How to Prepare for a Recession by tacitusarc on Friday March 18, 2022 @10:27AM (#30722683)

See fractional reserve banking: https://en.m.wikipedia.org/wiki/Fractional-reserve_banking

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