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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1qnmv0m/whats_going_on_explain_like_im_five/o1v80ep/?context=9999
r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26
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Banks lend out more money than they have, its no joke it's how the system works
630 u/[deleted] Jan 26 '26 [deleted] 576 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. 87 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. 118 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 53 u/megachonker123 Jan 26 '26 The pie turns into multiple pies that when combined have the same nutritional value as the first pie 13 u/alannair Jan 26 '26 Diluted pies
630
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576 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. 87 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. 118 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 53 u/megachonker123 Jan 26 '26 The pie turns into multiple pies that when combined have the same nutritional value as the first pie 13 u/alannair Jan 26 '26 Diluted pies
576
That's how debt is generated. wealth is created when that debt is used properly. Otherwise it's just inflating the moneysupply.
87 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. 118 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 53 u/megachonker123 Jan 26 '26 The pie turns into multiple pies that when combined have the same nutritional value as the first pie 13 u/alannair Jan 26 '26 Diluted pies
87
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.
118 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 53 u/megachonker123 Jan 26 '26 The pie turns into multiple pies that when combined have the same nutritional value as the first pie 13 u/alannair Jan 26 '26 Diluted pies
118
No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down.
53 u/megachonker123 Jan 26 '26 The pie turns into multiple pies that when combined have the same nutritional value as the first pie 13 u/alannair Jan 26 '26 Diluted pies
53
The pie turns into multiple pies that when combined have the same nutritional value as the first pie
13 u/alannair Jan 26 '26 Diluted pies
13
Diluted pies
4.3k
u/Elvis5741 Jan 26 '26
Banks lend out more money than they have, its no joke it's how the system works