Re: how does it work?


royls@xxxxxxxxx wrote:
On 19 Mar 2006 18:35:27 -0800, "Zerge" <zerge@xxxxxxxxxxx> wrote:

Money not spent gets saved; saved money gets
invested.

Tell it to the Japanese grannies who carry around Y1M in cash in their
purses.

-- Roy L

Of course some money (M0) lays around physically, not doing anything;
but I'm sure you are aware that the vast majority of money is in
electronic form, and never sits still. The moment you save money in the
bank, the bank either loans it to a person, a company, or invests it in
some sort of security.

.

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