Random Thought Thread

tinfoil hat timmy said:
The only reason entities are allowed to have a billion ''dollars'' is because they're on a leash. They're not allowed to spend it how they want. They're probably given some sort of allowance, if they even exist at all. If they spent it it would inflate the currency to wiener republic levels.

You or I with a billion? I'd buy a bunch of crap and that money would be ''in'' the economy inflating the currency.
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Was that the one based out of Vienna? 😂
 
Nathan the Machinist said:
Did you know that the Federal reserve is neither Federal nor a reserve?
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The Federal Reserve is the bank acting on behalf of the Federal Government which is also the central bank to the 12 regional Fed banks therefore it actually is a Federal institution which has the authority given to it by law to step in and to act as a lender of last resort, making it a reserve bank.
 
tinfoil hat timmy said:
The only reason entities are allowed to have a billion ''dollars'' is because they're on a leash. They're not allowed to spend it how they want. They're probably given some sort of allowance, if they even exist at all. If they spent it it would inflate the currency to wiener republic levels.

You or I with a billion? I'd buy a bunch of crap and that money would be ''in'' the economy inflating the currency.
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OK we all know that you had meant the Weimar Republic so with the typo set aside, we are discussing the kind of “imaginary” or wealth on paper that no amount of actual MONEY exists in the world to match those sums of wealth.

Extremely wealthy billionaires like Musk or Bazos can and do borrow against their vast portfolio to pay for stuff. I have no clue as to what percentage of such portfolio is discounted by their lender (the bank) but it will not surprise me at all if the collateral is only worth a fraction to the lenders if they put up their shares in their respective companies, which still turns out to be plenty enough to buy stuff with without ever having to pay any taxes as these are not income to be taxed.

When you state that these people are “leashed” so that their spending does not cause hyper inflation, you are correct in a sense that most hyper wealthy people use the amount of their wealth which is idle (the sum which never enters the blood streams of the economy as consumption) to purchase government bonds, mostly our own government’s bonds (debt). Most people are under the impression that our biggest creditors are other countries like Japan, the UK or China which is farthest from the truth. Out biggest creditors are actually us! The pensions funds, the private equities, the insurance companies, the commercial banks, the individual wealthy investors and the regular people. In a nutshell, we owe this vast sum of debt to ourselves but some, or rather a few, are just much much more fortunate than others!
 
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