Post by
RagingBull3 on Nov 20, 2020 8:32pm
Canadians sitting on Largest CASH hoard
https://www.bnnbloomberg.ca/canadians-sitting-on-largest-cash-hoard-ever-recorded-cibc-1.1523872
“We're in a very weird situation in which the economy is down, but the level of cash in the economy is rising."
LOL.... NOTHING is weird about the situation... As I understand, MONEY supply is virtually independent to Covid-19 or the economy being down. What Covid-19 and shutting the economy down does affect is the FLOW of money...CASH FLOW..... not money supply.
If I don't go to work today, I don't get paid. The money does not flow to me, instead it stay with my employer. It's not destroyed. If I work and get paid, money is not created, it moved from my employer to me. Money Supply neither created or destroyed. It just moves around.
The Central Bank(s) controls the money supply. Right now, the printing press going full tilt.
All just my opinion and understanding.
Comment by
RagingBull3 on Nov 22, 2020 6:22am
Think about the old times when money was Gold Coins. People worked, economy goes up and down, but the number of Gold Coins (money supply) remains virtually the same. You working or not working does not create or destroy the money supply.