central banks may have no choice...inflate!, page-8

AgAu

i actually read what you posted & neatly set out

answer me a frank question if, you or another can answer? (since i don't know the answer)

1. if A lends $1,000 to B; and

2. B uses the $1,000 to buy an asset from C for $1,000; and

3. due to oversupply the asset becomes worth $400; and

4. as a result B cannot repay A; so

5. A takes a loss of $600 after liquidating the asset

why has nothing changed?

is not A worth $600 less but C worth $600 more?

in other words, where does the money go?

although the lenders may make losses does not someone have the lost money?

thanks