the value of money held out of circulation is called "hoarding" by socialist elitist pigs and the importance of it in an economy is ignored
as you say, 'reserve assets' - what are these? they are a pile of money you didn't spend so when the time came you needed to, for example, such as in place of using insurance to repair damage, or to back up a loan on a somewhat risky enterprise
a monetary system without a proportion of it held off the market has no resilience in the case of disaster, nor any capacity to seize opportunities that require a large startup cost but low risk of failure
think about it if it was instead seed
should you plant every seed you save from this year's crop, or should you save some extra in reserve in case the next crop is thin and you barely even produce enough to plant the next year's crop, and just consider that this year may be one of those outliers, the 1% of cases that are extremely bad, and the next year is average or good, as can probably be prudently predicted
so, it's the same thing, money that is not being spent has a critical role in an economy, of enabling responses to sudden changes
no savings, no resilience
mleku / ⚡️mleku@getalby.com
npub1fj…mleku
2024-06-15 16:03:09
in reply to nevent1q…e2wq
Author Public Key
npub1fjqqy4a93z5zsjwsfxqhc2764kvykfdyttvldkkkdera8dr78vhsmmlekuPublished at
2024-06-15 16:03:09Event JSON
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"content": "the value of money held out of circulation is called \"hoarding\" by socialist elitist pigs and the importance of it in an economy is ignored\n\nas you say, 'reserve assets' - what are these? they are a pile of money you didn't spend so when the time came you needed to, for example, such as in place of using insurance to repair damage, or to back up a loan on a somewhat risky enterprise\n\na monetary system without a proportion of it held off the market has no resilience in the case of disaster, nor any capacity to seize opportunities that require a large startup cost but low risk of failure\n\nthink about it if it was instead seed\n\nshould you plant every seed you save from this year's crop, or should you save some extra in reserve in case the next crop is thin and you barely even produce enough to plant the next year's crop, and just consider that this year may be one of those outliers, the 1% of cases that are extremely bad, and the next year is average or good, as can probably be prudently predicted\n\nso, it's the same thing, money that is not being spent has a critical role in an economy, of enabling responses to sudden changes\n\nno savings, no resilience",
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