Re:US vendor accused of violating GDPR by reputation-scoring...
by matheusmoreira on Tuesday June 27, 2023 @01:46PM
(#36496272)
> that money should be "liberated" and put to use
The money is not really liberated, it is duplicated. When that money is put to use by lending it out, it literally creates new money out of nothing. There's money in your account and that same money is simultaneously lent out to others. This massively inflates the money supply, devaluing the currency. Printing of currency is insignificant next to the power of loans.
It's why things like startups are a low interest rate phenomenon and I wouldn't be surprised if it was the real reason why there were massive layoffs the second the US federal reserve raised interest rates: less loans means less free money for corporations to spend.
> You, on the other hand, want rich people to hoard money.
Of course. I too would like to be able to hoard money. Right now it would be irrational to do so since it would be inflated away to zero. We should all be able to simply amass wealth without having to perpetually chase investments to protect against the inflation caused by the sheer existence of those same investments.
The money is not really liberated, it is duplicated. When that money is put to use by lending it out, it literally creates new money out of nothing. There's money in your account and that same money is simultaneously lent out to others. This massively inflates the money supply, devaluing the currency. Printing of currency is insignificant next to the power of loans.
It's why things like startups are a low interest rate phenomenon and I wouldn't be surprised if it was the real reason why there were massive layoffs the second the US federal reserve raised interest rates: less loans means less free money for corporations to spend.
> You, on the other hand, want rich people to hoard money.
Of course. I too would like to be able to hoard money. Right now it would be irrational to do so since it would be inflated away to zero. We should all be able to simply amass wealth without having to perpetually chase investments to protect against the inflation caused by the sheer existence of those same investments.