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Hang on, it's only the same if Just Eat bought GrubHub from the government. Otherwise, the $5.5B isn't removed from circulation, it's in the hands of the previo

• lifeisstillgood 2y ago
  Hmmm, my dreams of the Nobel in economics goes up in smoke. I think it depends on how just eat financed it. If they borrowed 6bn from a bank, then the bank created 6bn from thin air, and will more or less have to write that off as just eat won’t pay it back. So the net balance will be .. err 6bn created and given to just eat: bank assets 6bn, just eat liability 6bn - total new cash in world is 6bn. Just eat hands 6B to lucky founder, in return for a website and domain name. Aha - the bank is the creator of the money - they magic it into existence - now if lucky founder deposits it into same bank, they have a liability of 6bn to him, and previously had a asset of 6bn of loans. Net zero. But now they have to write off the 6bn asset, so they are negative 6bn. So total money across the economy is down 6bn This also - I think - works if just eat raised it from VCs who got it from investors - someone at some point loaned money to someone or is obliged to pay it back. This shit is harder than it looks on Steve keens podcast