Ye I know it's artificial inflation

but are you serious before I put effort in here

High inflation can be beneficial in certain times

^ to stop stagnation

Okay I just realised how stupid the thing I asked was when I remembered venezuela 😂😂

But the problem is, it fucked over people who are saving money.

nah, dw, no stupid questions

yeah, sometimes people saving money is stupid

Sadly

because when money stops moving the seats get taken in the ever going game of musical chairs

Well isn't people hording money what caused such a big recession?

no

the problem was all they bet more money than we had in the system

imagine everyone in the world bets £1m

and how much that would actually be in real money

same thing

but it was banks

so when it went to shit, everything went to shit

and money stopped moving

Ahhh I thought it was because people weren't spending the money in shopsand stuff which was causing money to stop moving

Due to the uncertainty over the pound

no, that was a lower level problem

That would only be an issue on large scale

oh wait, what are we talking about here

Such as those hoarding billions.

the banking crisis or current things?

@Weez anyone with more than a few hundred grand don't really have that money

Okay so what caused the banking crisis?

what I just said

Well, true tbh

Oh I see banks gave out too much

no

banks had more bets than they had money

and the amount of bets overall were more than anyone had

Ohhh okay

so imagine we have a world with $100 in cash capital in circulation

and we have the current level of population

to simplify

now imagine we have as many banks as we do, organising as many loans and mortgages

to start with, banks use franctional reserve to invent new money as debt based on their reserves

that means the amount "spent" is more than we actually have attributable to people