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Their money doesn't represent resources sitting idle. The whole point of the financial system is that there isn't $X trillion idle. The securities they own are
by perl4ever 6y ago
Their money doesn't represent resources sitting idle. The whole point of the financial system is that there isn't $X trillion idle. The securities they own are claims on stuff other people are using. Talking about cycling it back into the economy is nonsense, because it isn't, can't be, taken out.
- mcphage 6y ago> because it isn't, can't be, taken out Well, they do when they issue stock buybacks and dividends.
- perl4ever 6y agoHow can that be? At the time the money is paid, nobody knows what the recipient will use it for. So how can anyone be taking any specific material stuff "out" of the economy? Apple doesn't pay dividends in, say, eggplants. If you buy some with your dividend, they haven't been taken out of the economy any more than anything that's consumed.