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(I've seen 3 different rebuttals of the above. 1. First is Rothbard's, in the book mentioned earlier, that any such hoarding will result in an increase in the purchasing power of the unhoarded money. This is a simple application of the laws of supply and demand applied to cash. Thus the means is there to buy everything on the shelves, even with
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((No. When you spend less on present consumption and save more for the future (capital investment) what you are doing is this: deferring some fraction of your consumption immediately, in favor of more consumption in the future.)) Here you assume that all savings is real and not nominal. Am I correct? ((On the contrary, when you have all the factors
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Thanks for the answers Warren. People ask me all the time that OK, if the banks create money this way and they are not reserve constrained and the money multiplier is bullshit then what is holding a bank to extend credit to itself and buying the whole economy. It is regulations as we know but how would you explain that in a very simple way.
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Thank you Warren, and you don't worry about the reserves while you are adding those "points" to my bank account?
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Thank you Warren. And where did those numbers come from that are on my account now?