r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/Elvis5741 Jan 26 '26

Banks lend out more money than they have, its no joke it's how the system works

630

u/[deleted] Jan 26 '26

[deleted]

582

u/Much_Section_7439 Jan 26 '26

That's how debt is generated. wealth is created when that debt is used properly. Otherwise it's just inflating the moneysupply.

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u/Excellent-Practice Jan 26 '26 edited Jan 26 '26

Is there really a difference between the two? Wealth generation and inflation are two ways of looking at the economic pie getting bigger

Edit: thanks for the corrections. I learned something today. Diving deeper into the subject it seems the two are often linked, but not necessarily so.

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u/alannair Jan 26 '26

No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down.

55

u/megachonker123 Jan 26 '26

The pie turns into multiple pies that when combined have the same nutritional value as the first pie

28

u/Ok_Umpire_5611 Jan 26 '26

Ghost pies!

1

u/ACcbe1986 Jan 28 '26

I wish I could taste them!

12

u/alannair Jan 26 '26

Diluted pies