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Because at some point the credits and the debits need to be settled with real goods and services and when they can’t be someone has to take a loss. The loss eit
by slv77 5y ago
Because at some point the credits and the debits need to be settled with real goods and services and when they can’t be someone has to take a loss. The loss either comes through default or inflation but allocating those costs are extremely painful politically. In many cases those costs end up being paid in blood.
- neilwilson 5y agoMoney and stuff are inductively connected, like reactive power and active power in electrical engineering. Assuming the 'power factor' of the economy is one is a category mistake.
- PaulDavisThe1st 5y ago> Because at some point the credits and the debits need to be settled with real goods and services If that happened all at once, for every credit and every debit, it would indeed be a problem. But that doesn't happen, ever.