This exact scenario happened in Lebanon just a few years ago. People have 'money' in the banks, but they're not allowed to access it. It's also happened in China, Ghana and Sri Lanka.
it’s amazing to see joe talk about this. no one’s denying that free markets can work but it’s completely insane rn, corporate profit is driving inflation like a sob and so many ppl are too dense to question it. 7.25 federal minimum wage too lmao
The baking example sounds flawed but it’s designed to make itself whole if all goes right. In the example the bank has $100 but owes $190. Although true, you need to also remember guy #2 owes the bank 90. So if the bank stopped there, over time guy #2 would pay back his loan and then some, resulting in the bank having the 190 plus some interest. So as long as everyone pays back their loans, it should end up working out in the end. Obviously it doesn’t always work that way
Get Richard Werner on the podcast.
Angry Canadian https://m.youtube.com/@Seniorsonfire
https://youtube.com/shorts/Tpf4zlcKHng?si=DrQeZ-TdLI4RzTr0
This exact scenario happened in Lebanon just a few years ago. People have 'money' in the banks, but they're not allowed to access it. It's also happened in China, Ghana and Sri Lanka.
it’s amazing to see joe talk about this. no one’s denying that free markets can work but it’s completely insane rn, corporate profit is driving inflation like a sob and so many ppl are too dense to question it. 7.25 federal minimum wage too lmao
The baking example sounds flawed but it’s designed to make itself whole if all goes right. In the example the bank has $100 but owes $190. Although true, you need to also remember guy #2 owes the bank 90. So if the bank stopped there, over time guy #2 would pay back his loan and then some, resulting in the bank having the 190 plus some interest. So as long as everyone pays back their loans, it should end up working out in the end. Obviously it doesn’t always work that way