Posted 2/28/2015 11:25 (#4420581 - in reply to #4420065) Subject: RE: Loans make deposits II
SW Ontario
I am working today and don't have a lot of time to answer your question. Although it is a good one.
The term "balance out" that I used to describe what must happen is probably not a good one. It does come down to mathematics and physics in a certain sense but economics is classified as an art not a science. Time is the variable that we cannot yet explain using math and science.
If you are concerned about your financial well-being during an extended period of money contraction you need to learn to think more long-term. I think one could actually run a profitable business during such a time although it may feel like you are getting poorer. Some of the best and most sustainable businesses were created during and shortly following the great depression.
If the central banks continue manipulating the money supply for long enough, I think we will eventually end up with some type of revolution. Would you rather have a few banks fail or would you rather have the entire system fail?
Loans make deposits II
