So my understanding is that the cash in circulation (inc. deposits) is only about $40T while the economy (inc. investments, derivatives, and cryptocurrencies) is about $1.3Q.
My question is …is it possible to ‘cash up’ the $1.3QT or is it ghost money? Are we in a virtual economy that would crash if we all cashed out?
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Say you start with $1000. Then you purchase a laptop for $800. Now you have $200 and an $800 laptop. So if you cash out, are you thinking that someone “tops off” $800 – so now you have $1000 and an $800 computer. This makes no sense at all – there is no purpose to it.
Investments represents an ownership of something of value, the laptop in the example above. There is no meaning to “cash up” something that someone already owns.
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