But the borrower is on the spot for more than the principal, paying off the loan does not zero out. They have to pay interest. The money comes from someplace else.
More bank loans or from fiat money (ie US “debt” and yearly deficit). The bulk of the money supply is bank credit money. When lending backs off, the money supply shrinks, amplified by interest obligation.
the quantum of money, that bubble of means of exchange collapses, not to zero but a negative.
GhostOnTheHalfShell /
npub1z3…rtxvc
2024-06-27 19:41:31
in reply to nevent1q…5vkm
Author Public Key
npub1z3lxxu5tmqxp8vhd3tny9f0nqp5dljpynh9j6gzgeyes2ukmz0kq0rtxvcPublished at
2024-06-27 19:41:31Event JSON
{
"id": "adae2b80c79079afc83b0e7106b1e94bf3903b6ad710d55269eac4f251bdb8cb",
"pubkey": "147e63728bd80c13b2ed8ae642a5f30068dfc8249dcb2d2048c9330572db13ec",
"created_at": 1719517291,
"kind": 1,
"tags": [
[
"e",
"dae79db05f249ea69c52f251de7b2dcd18e2c10d014b3cf3fbf1abc609610e7c",
"",
"reply"
],
[
"e",
"96865cf1c8ca359add59f2652f6afcda34f76c57155ab19e3a05a6f12da71139",
"",
"root"
],
[
"p",
"d530b7d6cd1741e72c1002ee0ebad4c1104eed09e418fdd76352f9005f7561ce"
],
[
"proxy",
"https://masto.ai/@GhostOnTheHalfShell/112690285219633094",
"web"
],
[
"p",
"147e63728bd80c13b2ed8ae642a5f30068dfc8249dcb2d2048c9330572db13ec"
],
[
"proxy",
"https://masto.ai/users/GhostOnTheHalfShell/statuses/112690285219633094",
"activitypub"
],
[
"L",
"pink.momostr"
],
[
"l",
"pink.momostr.activitypub:https://masto.ai/users/GhostOnTheHalfShell/statuses/112690285219633094",
"pink.momostr"
],
[
"expiration",
"1722109664"
]
],
"content": "But the borrower is on the spot for more than the principal, paying off the loan does not zero out. They have to pay interest. The money comes from someplace else.\n\nMore bank loans or from fiat money (ie US “debt” and yearly deficit). The bulk of the money supply is bank credit money. When lending backs off, the money supply shrinks, amplified by interest obligation.\n\nthe quantum of money, that bubble of means of exchange collapses, not to zero but a negative.",
"sig": "843b592c68931eea4d5cd9249bafa465dea15765e8587991db41e4abcb9093b9b63dbe66df3f810e3f65dcf19d1ecd8ee61a421f0eebe0f3fda5d3d3ef9cc329"
}