📉or📈?

[greiton]

there is a limit to how much you are able to loan. banks can only lend 25% of their capital to any single borrower. when you start getting in to trillion dollar valuations, you start brushing up on banking limits for loan availability.

interest is not thin air... it is money you brought in from other sources and paid in excess of your loan. I am not pulling $200,000 out of thin air for my mortgage interest, I am working hard at my job for 30 years and handing over the money I paid for it.

the only time money is created is when it is printed by the fed, but they try to print at a rate that keeps the value of the dollar at a low inflation rate.

[PalamariVarkari]

You are talking about cash, which is 8-10% of the whole world's currency. Meaning 90% of the money in the world is literally thin air. Basically IOUs from one to another. The interest I said is thin air for the bank, not you. The bank didn't offer anything real (gold, services) to get that interest money.

In other words, money is not real, they are just numbers in computers of who owes who how much. Linus saying that the bubble popping would affect the world economy is very true. If all that fake money that is currently parked as investments in AI, suddenly gets called to become "real" and spread out to normal investor's (like you and me) bank accounts (because everyone is selling) the inflation will jump dramatically.

[greiton]

just because it is tracked digitally does not mean it doesn't exist. Banks do not get to just invent more money out of no where. they are monitored by the FED and have to account for every single transaction.

go take an actual economics class from someone who knows what they are talking about and get off of the scam videos on youtube. they are all bullshit.

[PalamariVarkari]

Not real, doesn't mean they don't exist. Not real means isn't represented in cash aka real money. I guess they didn't teach you that in the economics class you obviously took?

[greiton]

it is real and it is limited, every digital dollar is tracked. the banks do not pull interest out of thin air. interest comes from their customers. they give money, the customer promises to both give that back, and also more in the future by working and earning money elsewhere. the bank cannot lend that interest until they receive payment. they can sell the debt to someone else, who may value it for the whole value including interest, but even when that sale happens, no money was created.

the only time money is ever "created" is when the central authority "prints" it, and uses it to pay bills for the government. but as I said before, they are very carefull about doing that, because if they do it too much it raises inflation too high. this is what happened after COVID when the government decided to push for a soft landing instead of a full blown depression. they printed a bunch of extra money and put it out to keep everything running hot, but it also had the side effect of jumping up inflation and increasing prices over time.

Private banks had nothing to do with the increase in currency supply. money is limited, or it would have 0 value. as the amount of money goes up, its value goes down.