4 ms·
Real estate is the messy underbelly of capitalism. Since only debt (= mortgages) creates money (and growth) you have to cut them some slack. The economy won't w
by garte 2y ago
Real estate is the messy underbelly of capitalism. Since only debt (= mortgages) creates money (and growth) you have to cut them some slack. The economy won't work if you're asking too many questions.
- JumpCrisscross 2y ago> Since only debt (= mortgages) creates money Mortgages aren’t only one among many phyla of dollar-denominated debt, they‘re not even the biggest [1][2]. And fiscal spending can create new money without debt. Debt is the monetary channel’s mechanism. [1] https://www.statista.com/statistics/274636/combined-sum-of-all-holders-of-mortgage-debt-outstanding-in-the-us/ https://www.statista.com/statistics/274636/combined-sum-of-a... [2] https://en.m.wikipedia.org/wiki/National_debt_of_the_United_States https://en.m.wikipedia.org/wiki/National_debt_of_the_United_...
- garte 2y agoWouldn't fiscal spending devalue the currency since this money has to be "printed" instead of lent?