https://www.consilium.co.nz/news-ins...e-the-hangover
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Are you really suggesting the same amount of money stays in bank accounts?
The old zero sum game has never existed, otherwise their wouldn't be growth or inflation. It doesn't allow for monetary or credit expansion or new share issuance, new house builds, population increase. So many things.
Apparently money transfer between banks is not done by transferring people's deposits because these are liabilities of the individual banks and so cannot be transferred.
I'm sure banking could be explained quite simply (not by me) but it is in nobody's interests to do so.
Thank god for that as you have no idea.
If you worked for someone else in the financial industry for that long then by definition you haven't a clue. Should be independent way before that long.
Just because you work in an industry does not mean you understand how it works.
No of course I am not.
Money is created when loans are issued.
What I said was that it's not possible in aggregate to transfer money into shares or other assets as all you are doing is swapping your money to the person who sells you shares.
The dollar you send out of your account goes into theirs.
The only way money can disappear is if there is default or loans are paid down (which then requires new money anyway)
You or whoever it was, was suggesting that money needs to go from the banking system into other assets, but it cannot in aggregate.
Just like every share in a company has to be owned by someone, so does every dollar in the banking system.
Imagine getting up and crawling into a suit and to go to some office job for 20 years when you also are supposed to know things about finance.
Oxymoron.
Surely you'd be better working on your own terms investing your own capital and that of close friends and family.