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by Archery1
Mon Oct 17, 2016 10:35 am
Forum: Off-Topic
Topic: BBC's "The End of Cash". Pros & cons of ending cash.
Replies: 35
Views: 5964

Re: BBC's "The End of Cash". Pros & cons of ending cash.

surprise_i'm_armed wrote: One of the reasons that banks would like to discourage using cash is that a real dollar deposited in a bank
can generate 9 times its worth by generating other loans. I'm not an economist with more detail, but
you get the idea.
This is a non-issue, actually. It's a simple function of money that is part of the money supply. If you have more money on hand than you spend, then you have a credit with the institution that holds your unspent money. It's all a series of electronic credits and debits to begin with.

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