Hacker News new | ask | show | jobs
by jaxtellerSoA 2734 days ago
>The extra 10k is coming from the increased profits enabled by the investments that the 100k paid for.

Companies, and their profits, can't and don't create cash out of thin air. That isn't how the money supply works. This is a central banking problem.

2 comments

Value is created out of thin air through work. Sometimes you need to invest before you can do that work. If your money supply doesn't reflect the increase in value that the economy provides through work, then you get deflation.
>Value is created out of thin air through work.

Value != money supply

That is why adrianN said value comes from work (not from money).
For every cent paid in interest rate some account is receiving a cent. Where is the paradox?