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What does M2 have to do with public spending? Most of that money was created by private banks with private loans. Edit: It's also a little hard to stop spendin
by AlexandrB 3y ago
What does M2 have to do with public spending? Most of that money was created by private banks with private loans.
Edit: It's also a little hard to stop spending money when you're dealing with the fallout of this: https://en.wikipedia.org/wiki/2023_Turkey–Syria_earthquakes https://en.wikipedia.org/wiki/2023_Turkey–Syria_earthquakes
> The confirmed death toll stood at 59,259: 50,783 in Turkey and 8,476 in Syria. It is the deadliest earthquake in what is now present-day Turkey since the 526 Antioch earthquake and the deadliest natural disaster in its modern history.
- qwebfdzsh 3y ago> the deadliest natural disaster in its modern history. Wasn't the 2004 tsunami deadlier?
- nvm0n2 3y agoIt has a multiplier effect. Government wants to spend money without raising it in taxes, forces the central bank to "loan" it money which it does via "printing" (increasing the balance of the govt at the CB accounts). The government spends the money on salaries and pensions which is then deposited into banks, which use those deposits to justify even more lending.