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   Eniko Fox (eniko@peoplemaking.games)'s status on Sunday, 12-Mar-2023 15:57:36 JST Eniko Fox

   So what's with the bank thing. Is American bank mismanagement going to plunge the rest of the world into a horrible economic crisis again? Cause I guess that'd be fine given we already have a cost of living crisis, war, plague, rising fascism, and impending climate collapse

   • clacke likes this.
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     clacke (clacke@libranet.de)'s status on Sunday, 12-Mar-2023 15:59:52 JST clacke

     in reply to

     • Luci for Chai Tea
     • Kevin Trepanier
     @SmallisBeautiful @zens @eniko Exactly. The bank doesn't make it disappear. It stops making it appear when it closes the database that says you have money.
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     Kevin Trepanier (smallisbeautiful@mastodon.gamedev.place)'s status on Sunday, 12-Mar-2023 15:59:58 JST Kevin Trepanier

     in reply to

     • Luci for Chai Tea

     @zens @eniko
     It vanishes into tin air because money is not real (Also banks only have around 4% reserves in hard currencies so..)

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     Luci for Chai Tea (zens@merveilles.town)'s status on Sunday, 12-Mar-2023 15:59:59 JST Luci for Chai Tea

     in reply to

     @eniko where does money go when a bank makes it disappear?

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     clacke (clacke@libranet.de)'s status on Sunday, 12-Mar-2023 18:04:34 JST clacke

     in reply to

     • Luci for Chai Tea
     • Kevin Trepanier
     @zens @SmallisBeautiful @eniko In monetary theory though if I understand correctly it would lead to less productivity and worse matching as there'd be people who wanted to have something done and people who'd be ready to do it, but there potentially wouldn't be the liquidity to connect them.
     
     Debt allows people to start working on a thing based on the expectation that the thing will make returns. And money as we understand it is created from debt and obligations, not from collateralized resources as we used to describe it. Goldbugs disagree.
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     Luci for Chai Tea (zens@merveilles.town)'s status on Sunday, 12-Mar-2023 18:04:35 JST Luci for Chai Tea

     in reply to

     • clacke
     • Kevin Trepanier

     @clacke @eniko @SmallisBeautiful feels like you’d want money to follow some laws of physics, like preservation of volume

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     clacke (clacke@libranet.de)'s status on Sunday, 12-Mar-2023 18:07:50 JST clacke

     in reply to

     • Luci for Chai Tea
     • Kevin Trepanier
     @zens @eniko @SmallisBeautiful Flexible money supply allows the money economy to grow as actual industrial productivity grows.
     
     The drawback is what we're seeing where people have too much money and it just inflates property prices rather than going somewhere productive.
     
     I'm not well-read enough to say how this can be balanced out except maybe Georgist land value taxation.