https://www.cnn.com/2024/07/02/economy/global-debt-crisis/index.html
In: Economics
It’ll make more sense once you understand there is a very thin like between debt and money, and sometimes its not there at all.
Say you have a dollar and deposit it at a bank. You have 1 dollar in assets, bank has one dollar in liabilities and one dollar in cash.
Alice borrows a dollar from that bank. You have dollar in assets, bank has dollar in assets, dollar in liabilities, Alice has a dollar in cash and a dollar in liabilities. Thats already 3 entities, each with dollar in cash or assets, never mind the two dollars in debt. Even though its the same singular physical dollar changing hands.
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