Are banks a scam? 🤔

Consider what happens when you deposit money into a commercial bank.

Your deposit becomes part of the bank’s balance sheet.
Then the banks use your deposits to create new loans.

That means the monetary system can expand the supply of bank created money through credit creation.

The question is....... ❓

What happens to the purchasing power of the monetary units you’re saving when the supply of those units continually expands....... ❓

If the monetary system expands the supply faster than the economy’s real productive capacity grows, that stored purchasing power is diluted over time.

So perhaps the bigger question isn’t:

“How much money do I have?”

It’s actually.............

“What is my money actually worth—and how is that changing?”

🤔

#Money #Banking #Inflation #Economics #Bitcoin