Thanks for the detailed reply, we're really getting into the meat of it here in this debate.
"has hundreds of billions its loaning out because it has nothing better to do with its excess cash "
That's not really being a creditor if you're investing in something that doesn't cap the upside. Likely apple's fund is investing into companies that will benefit from inflation, and if in my contrived example the money supply doubles their valuation in said company doubles.
It's really fixed rate loans that are 'creditors', not investment firms. Some googling tells me they also have ~230 billion in outstanding debt. So I think it's safe to say in this example they're a net debtor.
>But how do you interpret this has having more debt?
By proxy through being invested in corporations that themselves take out debt to invest in money making ventures.
>Sort of? Banks don't get to regulate currency supply, the Fed does.
Banks ARE the Fed! The local federal reserve banks aren't themselves buying assets its nationally chartered banks that are required to be part of the fed that are participating in this dance.
>If you are a multi-millionaire real estate mogul who's writing mortgage loans, then this not good for you.
Most multi-millionaire real estate moguls who are writing mortgage loans know this, which is why they sell them to the federal government or other government institutions.
It's really fixed rate loans that are 'creditors', not investment firms. Some googling tells me they also have ~230 billion in outstanding debt. So I think it's safe to say in this example they're a net debtor.
By proxy through being invested in corporations that themselves take out debt to invest in money making ventures. Banks ARE the Fed! The local federal reserve banks aren't themselves buying assets its nationally chartered banks that are required to be part of the fed that are participating in this dance. Most multi-millionaire real estate moguls who are writing mortgage loans know this, which is why they sell them to the federal government or other government institutions.