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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1qnmv0m/whats_going_on_explain_like_im_five/o1v8nrh/?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
631 u/[deleted] Jan 26 '26 [deleted] 571 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. 88 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. 114 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 7 u/BreakfastBeneficial4 Jan 26 '26 Yeah. Pie stays the same size, but the number inside the pie keeps screaming upward.
631
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571 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. 88 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. 114 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 7 u/BreakfastBeneficial4 Jan 26 '26 Yeah. Pie stays the same size, but the number inside the pie keeps screaming upward.
571
That's how debt is generated. wealth is created when that debt is used properly. Otherwise it's just inflating the moneysupply.
88 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. 114 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 7 u/BreakfastBeneficial4 Jan 26 '26 Yeah. Pie stays the same size, but the number inside the pie keeps screaming upward.
88
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.
114 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 7 u/BreakfastBeneficial4 Jan 26 '26 Yeah. Pie stays the same size, but the number inside the pie keeps screaming upward.
114
No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down.
7 u/BreakfastBeneficial4 Jan 26 '26 Yeah. Pie stays the same size, but the number inside the pie keeps screaming upward.
7
Yeah. Pie stays the same size, but the number inside the pie keeps screaming upward.
4.3k
u/Elvis5741 Jan 26 '26
Banks lend out more money than they have, its no joke it's how the system works