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>The extra 10k is coming from the increased profits enabled by the investments that the 100k paid for. Companies, and their profits, can't and don't create cas
by jaxtellerSoA 8y ago
>The extra 10k is coming from the increased profits enabled by the investments that the 100k paid for.
Companies, and their profits, can't and don't create cash out of thin air. That isn't how the money supply works. This is a central banking problem.
- rightbyte 8y agoFor every cent paid in interest rate some account is receiving a cent. Where is the paradox?
- adrianN 8y agoValue is created out of thin air through work. Sometimes you need to invest before you can do that work. If your money supply doesn't reflect the increase in value that the economy provides through work, then you get deflation.
- jaxtellerSoA 8y ago>Value is created out of thin air through work. Value != money supply
- BenoitEssiambre 8y agoThat is why adrianN said value comes from work (not from money).