Paper money is flimsy and wears down quickly. It’s being constantly printed and replaced. This meme is vague and intentionally misleading. Physical money in circulation is replaced and old money destroyed. Constantly. That’s what these figures are about. The wealth inequality, solid point. The rest is just vague word use to make it sound alarming.
The US is printing a lot of money, but a lot of that money is theoretical and not really printed. Stocks are a way this happens, if you bought 10 shares at $10 and a week later they are worth $15, $50 got created. Loans are another way money gets created with a fractional reserve system, $1, 000 in savings can create $10,000 in loans.
Why is the US printing so much money?
Paper money is flimsy and wears down quickly. It’s being constantly printed and replaced. This meme is vague and intentionally misleading. Physical money in circulation is replaced and old money destroyed. Constantly. That’s what these figures are about. The wealth inequality, solid point. The rest is just vague word use to make it sound alarming.
The US is printing a lot of money, but a lot of that money is theoretical and not really printed. Stocks are a way this happens, if you bought 10 shares at $10 and a week later they are worth $15, $50 got created. Loans are another way money gets created with a fractional reserve system, $1, 000 in savings can create $10,000 in loans.
A good answer! Thank you! Geez, econ 101 boggles my mind
It’s really finance not econ.
That guy has absolutely no idea what he’s talking about.
Good to know, but can you elaborate, please?