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That's not really how the real world economy works. The real world economy is all about people producing and consuming things. Banks, even central banks, are just a thin layer of icing on top of the cake.


That is not true. They get to issue new money and decide who gets to spend that new money before the circulation of that new money causes general prices to raise.

Those who get the new money first live at the expense of those who don't.

The central bank doesn't need to produce anything to create this new money.


Sure it is about producing and consuming things. No one can argue about that. But remember that we don't exchange goats for cows, and milk for banana juice anymore. You produce things because you believe you will make enough money so you can then buy something else with it. So you can regard money as an intermediary economic good which everybody wants. The problem however is that some participants to this market, like the central bank for example, get to have access to virtually unlimited supplies of money, which puts you at great disadvantage.




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