Comments by "Dr. Ricco Lindner" (@Dr.RiccoMastermind) on "How banks create money" video.

Very true. Mostly, "money" seems to get stuck in the saving accounts of rich private benefiting members of the society. One reason why more and more deficit has to be created to let everything flow. I guess the ever increasing total liquid amount of money is also dependent on how many users there are, the turnover rate and the total growth of economy. Can thus be right? 🤔
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Well, money is debt on one site of the balance but most importantly it's also credit on the other site. Only as debt/credit it's really useful to "move" and transact things, until its finally paid back or removed otherwise from the great stream of goods and money, e.g. by taxes 😊
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@edbop you are very right! But what I meant was - macroeconomically speaking - that more and more money seems to get "stuck" in non-producing assets, like savings account, stocks, houses, yachts and what ever, not really participating in economy. Rich people don't spend all their money to buy or produce things, right?
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It's quite clear, the extra money for profits and interest can only come from the government! Privat money issuing does not caus net more money in the economy. That is why the gov. should rund a deficit to not crush economy, unless there is a big net inflow of money from trade.
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@curryattack8985 right in part. Private companies do not earn all their money from other people's spent private debts from banks. Even if this was the case, private debt accumulates further and until some bubble burst like 2008. There are so many ways how the government net-spends money into the private sector and thus into the economy which it does not completely taxes back. Private banks can't or shouldn't spent net more money into existence than they take back, not in the long run
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@curryattack8985 this is generally true. The question is who goes in to debt. The bank usually doesn't give out also the interest on loans as loans. Companies have to earn the interests as revenues from their customers (private or companies). This might increase their private debt, maybe even until we have a big private debt crisis again. Therefore it is better that the state goes into debt. The money the government spends on his employees or as subsidiary or as social aid, directly flows into the economy via consumers to add to the company' revenue, true? So, companies have to get extra money (from the state or from abroad) to pay off the loans+interest
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@SandhillCrane42 I think it's 2 sides of the same medal, since it's double-entry bookkeeping. Credit for the private sector balance by an government debt on the other side. At least that is what I meant
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Very true. Mostly "money" seems to get stuck in the saving accounts of rich private benefiting members of the society. One reason why more and more deficit has to be created to let everything flow. I guess the ever increasing total liquid amount of money is also dependent on how many users there are, the turnover rate and the total growth of economy. Can thus be right? 🤔
2