debt magnify gains and losesif asset prices fall people with...

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    debt magnify gains and loses

    if asset prices fall people with debt lose more money than people without debt

    they therefore have to dump their assets on the market at bargain prices

    yea so I can see debt causing inflation but it could also lead to deflation

    but even in a deflationary situation banks are still lending out 9/10 of their deposits and increasing the money supply
 
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