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"Money can either be spent or saved, never anything else" "If you burn a dollar, does that count as spending it or saving it?"
Saturday, 18-May-13 01:44:26 UTC from web-
@redenchilada What if you send it to space?
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@redenchilada No, it's the only exception
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@redenchilada First of all VSause brought up a good point about this :) Burning Money is neither spent nor saved its called "Economical Reduction" (or some fancy word like that) where the money that's burned or torn or busted can lower the total amount of overall money and that's when the banks can make more money... Like i said earlier banks have this printer where they can print money to stabilize there cash flow if things get to low... so basically when u burn a bill a bank earns a bill Theoretically
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@swiftperception Burning money causes deflation, the banks can't print money. There's a specific institution in each country, under the ministry of economics, that prints money.
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@rarithos oh ok i might of gotten some things wrong but i dont know everything haha ^_^
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@swiftperception No problem. In any case if the printing of money was done by the banks, the economy would be destroyed.
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@swiftperception Banks don't just "print more money" if their reserves are low. Money's made at a few specific mints and their production is controlled. Banks themselves are just for-profit businesses that make their money through loans.
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