>Town of 100 people
>Everyone has $50
>Everyone stores Money In Town Bank
>Total bank balance of everyone: $5000
>Bank lends $1000 to a farmer to buy new equipment
>Merchant who sold the equipment deposits $1000 into bank.
>There is now $6000 total deposited in the bank
>1000 just came out of thin air
Money is fake and gay
>Town of 100 people
>Everyone has $50
>Everyone stores Money In Town Bank
>Total bank balance of everyone: $5000
>Bank lends $1000 to a farmer to buy new equipment
>Merchant who sold the equipment deposits $1000 into bank.
>There is now $6000 total deposited in the bank
>1000 just came out of thin air
Money is fake and gay
I remember this classic philosophical quandary of our time, but in a different form.
Classic.
debt: am I am joke to you?
Balance:
Each of 98 Townspeople: $50
The Merchant: $1050
The Farmer: -$950
So, the 98 towns people and the merchant all wants to withdraw.
???
Now you have a riot outside of a bank.
Congrats, you destroyed a Town with #Banking 🫠
Or alternatively.
The Banker just gaslight the town to mob-lynch the Farmer the good ol’ capitalism way.
Rich people never pay off debt.
They let the poor pay it off for them
Future economists are going to make so much fun of us for thinking $1000 was created here.