7 ms·
A bit offtopic, but I've been wondering - is it possible to destroy money in any way other than literally burning banknotes. With electronic money you can only
by Asooka 8y ago
A bit offtopic, but I've been wondering - is it possible to destroy money in any way other than literally burning banknotes. With electronic money you can only transfer them between parties, so while you can give away all your money, the money still exists in the system - you can't call the bank and ask to have 100k deleted from your account. Am I missing something or is there no way for money to ever disappear from the banking system?
- foxhop 8y agoYou cannot destroy money, the government literally adds money at any time (physical and electronically). Deleting 100k would be a drop in the bucket. Often when the government creates new money it's given to the banks who loan it to the rest of us with interest...
- jpetso 8y agoMoney is created when debt is taken out. By repaying debt, the allowed maximum amount of loaned money (i.e. arbitrarily created money) is reduced. If all debts everywhere were repaid, all money would stop existing. Therefore, if you give your money to people who use it to pay off their loans, you effectively do the same thing as having it "deleted". The other question, of course, is how to keep those people from taking on new debt now that they have some breathing room.