Comments by "dixon pinfold" (@dixonpinfold2582) on "Insider News"
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@Nauda999 Your reply tells us more about the nature of your personality and imagination (both of which may well be very respectable) than anything else.
I'll just toss in this about banks and debt: A very large bank with $2trn in debt on its loan book isn't worth $2trn. More likely 5-10% of that. You could buy it for $100-200bn, since it is valued on its profits, not its assets. Banks don't merely lend out deposits; mostly they create the money they lend.
Few people know this. Most believe central banks create money, which is false except now and then. A customer 'borrows' money at the instant a bank creates it out of thin air. They largely don't subtract it from anyone's deposits in any sense; mostly they just write a line in the ledger depositing the sum in the borrower's account. Presto!, as magicians say.
And this about who owns banks: for the most part institutions like pension funds and mutual funds ("groups"). But also many individual shareholders, rich and not rich.
And this about who owns government debt: besides banks, the same institutional funds, plus foreign govts in a form of cross-ownership intended to bolster stability. But yes, ultimately the wealthy for the most part. And yes, the richest 1%, let's say—i.e. 80m people—own half of everything, it would appear.
I'm not against the Fermi estimates of highly-knowledgable brilliant people. Actually they interest me intensely; incompetent guesswork doesn't. Don't trust me though, nor any sole other party particularly. Determining the facts on these matters for the most part is the work of a lifetime. (That one thing, and no other, you can indeed trust me on.)
Please excuse the length of my reply.
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