- Mar 2, 2003
The volume of currency in circulation is not a random event. The economy cannot grow if the supply of currency is curtailed.Originally posted by: Bleep
It dont quite work that way. I put money in the bank or buy certificates and they pay me 2-3% on my money and loan it to you for 8-10% to buy yourself a new car, no goverment money there.Exactly Lunar. These morons fail to realize without the US governemnt (which is the poeple) printing money though the fed and loaning it to commerical banks who then loan it to corps and other businesses thier would be no business. So whos giving who the job
Or the fed makes money available to pay the debt to a large bank that loaned the gov money and then the bank loans it out to someone else. Prove that the fed prints more money just to loan it out. Business makes money by selling stock, that is how most large business get money.
It is not necessary to borrow money to start a business just a good plan a good product and good marketing. Start small and end up large. This is experience speaking.
Little kids start our small too and in this country end up big and too big sometimes..
The fed lends money (currency, interesting word that) to the member banks which enables them to lend it out. Your CD just allows for the multiplier affect.. (reserve requirements)
All currency is backed by the government.. (you and me Zebo and moonbeam too .. not JGalt, thought) it belongs to us as does the debt..
Stock issue is the most expensive means of raising capital and it shares the opportunity when you are large.... it is the best way, if successful, to realize wealth by the owners selling it to new owners..
OPM.. other peoples money.. borrowing is how most companies finance both working capital and Fixed assets. If you use your own money that is fine too.. but, much more risky to you..
There is one fundamental factor about currency.. it is the means of barter.. instead of carrying oranges from the store to acquire grapes from another store..
Just my opinion..