Save us Bill Gates!
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Yes, you're right there, of course. Except that banks don't even need your money to give someone else a loan. Kind of forgot my economy lessons.
If the brain were so simple we could understand it, we would be so simple we couldn't. — Lyall Watson
Regulations require the banks to maintain a certain ratio of deposits to loans, so having more deposits enables them to make more loans.
If you have an important point to make, don't try to be subtle or clever. Use a pile driver. Hit the point once. Then come back and hit it again. Then hit it a third time - a tremendous whack. --Winston Churchill
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Regulations require the banks to maintain a certain ratio of deposits to loans, so having more deposits enables them to make more loans.
If you have an important point to make, don't try to be subtle or clever. Use a pile driver. Hit the point once. Then come back and hit it again. Then hit it a third time - a tremendous whack. --Winston Churchill
AFAIK that ratio is own funds to loans (or deposits of own funds to loans), not deposits of customers money to loans (?)
If the brain were so simple we could understand it, we would be so simple we couldn't. — Lyall Watson
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You seem to assume that the bulk of the wealth exists as cash. I'd bet it doesn't, I'd think it is represented by ownership of things, companies, real estate etc. All of which contribute to the economy.
Never underestimate the power of human stupidity RAH
Mycroft Holmes wrote:
the bulk of the wealth exists as cash
I'm not that naive (I hope) and I did avoid using the term. In economics 'money' is a more fluid term. I can't agree that real estate necessarily contributes to the economy especially if purchased outright. You either live in it in which case it is essentially economically inactive or rent it in which case it is a net drain. Although I'm not particularly in favour of inheritance taxes, it is the economic status of land ownership which they are meant to address. Equally there is a danger that for-profit companies in de facto monopolies (MS, Google in Europe, etc.) become money sinks taking far more out of the economy than they put in. Add to that that the degree to which your trade becomes money itself is proportional to personal wealth so that money is siphoned off into an exclusive club trading it between themselves (much in the manner of a giant ultra high-stakes poker game). I am not arguing for equal distribution of wealth per se. I'm certainly no socialist. But there is no question that the existence of the super rich, whose personal wealth is so extreme that by 2014 the richest 67 people in the world commanded assets equivalent to those of the poorest half of the world's entire population (then 3.4 billion people) is a real problem for the economies both of the nations they inhabit and the world in general.
I am not a number. I am a ... no, wait!
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I mostly wans't talking about your drivel. I was mostly talking about the anonymous numbered user who is obviously a SJW who keeps on posting. S(he)'s quite a spammy lot.
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Why we created the Save Us Bill Gates computer game | Global Justice Now[^]
Bastard Programmer from Hell :suss: If you can't read my code, try converting it here[^][](X-Clacks-Overhead: GNU Terry Pratchett)
I used to have a lot of respect for Bill Gates, but lately he's been worried about 'global warming' and artificial intelligence[^]... Really? I think he's losing it.
