Posted by Brendon-KS on February 05, 2023 at 17:51:51 from (63.245.145.17):
In Reply to: Re: High prices posted by RobCons on February 05, 2023 at 14:37:56:
A very large percentage of the money you see floating around an economy was created by debt. If I walk into the bank and take out a $10,000 loan the money appears in my account but it didn't come from anywhere. The bank is only required to have a small percentage of the money they loan out actually available on hand so it's not like the $10,000 got moved from the bank's account to my account. It simply gets created out of nothing and appears in my account, ready for me to spend on whatever I want. The total amount of money circulating around the economy is continually increasing as more money gets created this way which is why inflation steadily increases over time.
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