Re:Balaji bets $1M that USD will suffer hyperinflation withi...
by JVillella on Friday March 17, 2023 @04:45PM
(#35202681)
>How are people going to withdraw money and not put it into another bank? This guy is just saying ridiculous shit for attention, there’s no way he’s this stupid.
Maybe it goes something like this: AIUI the act of pulling money out of the banks will crash them, one by one. Along the way the government will continue to print to try to backstop it and restore confidence. The act of this just speeds up the demise. The money will get centralized to the GSIBs. But they have the same problem.
> This isn't your typical fractional reserve situation. The problem is that there isn't enough in the banks on a mark-to-market basis to cover withdrawals.
How are people going to withdraw money and not put it into another bank? This guy is just saying ridiculous shit for attention, there’s no way he’s this stupid.
Again, his thesis is that bank withdrawals will cause banks to collapse and hyperinflation. It’s not possible for this to happen, there’s not enough physical cash to cause banks to collapse from withdrawals, and if you take money out of a bank in a non-cash form, where will you put it?