>You sill would need $105k at the end of the year to satisfy all debts and have an equilibrium withing the economy. Where is the extra $5K coming from? Magic??
this makes very little sense. You are not lending the entire economy and then demanding more than the economy be paid back. You only lend a portion of the money supply so that a slightly larger portion is repaid.
Even if that were the case, isnt that what QE does?
this makes very little sense. You are not lending the entire economy and then demanding more than the economy be paid back. You only lend a portion of the money supply so that a slightly larger portion is repaid.
Even if that were the case, isnt that what QE does?