- Banks are intermediaries between savers and borrowers.
- “Money on the sidelines” – investors’ cash and money market balances – drives stock market rallies as idle money is “put to work.”
- Bank reserves are idle cash that the banks could (and should) be lending out.
- There is a multiplier effect that causes government spending to create economic growth larger than the amount spent.
- Printing money causes inflation.
- High levels of public and/or private debt do not matter because we owe the money to one another, so debt is just a transfer between people.
Location : Port Orange, Florida, United States
I'm an independent investor. I make my living from the returns on my investments. I work at home, near Daytona Beach in central Florida. I spent most of my career as an executive in high-tech, although I also spent time in banking.