Matthew Yglesias

@mattyglesias ↗

Deleted No

Hibernated No

Last Checked March 17, 2023

Created

Tue Mar 14 01:56:22 +0000 2023

Likes

Retweets

Source

Twitter for iPhone

View Raw Data

JSON Data

View on Twitter

Likely Available

Matthew Yglesias @mattyglesias

In that system, the bank pays *you* for the right to store your gold because it would then earn a profit by loaning it to other people. Of course legally they wouldn’t be storing your gold bars at all, they’d be borrowing them. But with a promise to give them back on demand. — PolitiTweet.org

Posted March 14, 2023

Preceded By

Matthew Yglesias @mattyglesias

Suppose all your savings was in the form of gold bars. You’d want to store those bars someplace safe and you’d have to pay for the privilege. The more bars you had, the more you’d need to pay. Alternatively, you could let the gold-storer borrow your gold and lend it out. — PolitiTweet.org

Posted March 14, 2023

Followed By

Matthew Yglesias @mattyglesias

What’s really great about this system is the bank doesn’t actually have to lend out physical bars of gold (heavy, inconvenient) when they make loans to people — they can just write little notes that are like “this is $10 worth of gold” and people can swap those notes. — PolitiTweet.org

Posted March 14, 2023