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> Financing works because banks "print" money, that is, they make up money and loan that money out, and then it gets paid back Don’t forget persistent inflatio
by ajsixjxjxbxb 1y ago
> Financing works because banks "print" money, that is, they make up money and loan that money out, and then it gets paid back
Don’t forget persistent inflation, which is how they make a profit off printing money. And remember persistent inflation is healthy and necessary, you’d be going against the experts to say otherwise.
- KaiserPro 1y ago> Don’t forget persistent inflation, which is how they make a profit off printing money. Ah, well no, high inflation means that "they" loose money, kinda. Inflation means that the original money amount that they get back is worth less, and if the interest rate is less than inflation, then they loose money. "reasonable" inflation means that loans become less burdensome over time. However high inflation means high interest rates. So it can mean that initially the loan is much more expensive.