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> In an economy with a working financial system there is no such thing as abundant or scarce capital, because financial capital is not used up when an investmen
by runeks 6y ago
> In an economy with a working financial system there is no such thing as abundant or scarce capital, because financial capital is not used up when an investment is made, but merely transferred to the accounts of vendors and employees who then store it in funds which in turn seek new investments elsewhere.
If you invest 10 million in my business and I use it to buy 10 million worth of 30-year treasury bonds, how exactly is this capital “seeking new investments”?
- nly 6y agoYou're lending money the government who can use it to either supplement taxes (provide stimulus) or make public investments.
- 93po 6y agoDoes lending to a government really matter when they can (and do) print trillions of dollars to fund things all the time?
- fuzzfactor 6y agoAlso, if a capitalist has only $10 million to invest, and others have already started putting it all to work, there is nothing left for you if you come along afterward.