https://slavyanski.net/sb2020/story.php?title=the-difference-between-lenders-and-investors The ratio states that not more than forty% of the accessible earnings can ever be used to repay new loans. I do know this sounds like borrowing from Peter to pay Paul, as a result of it's. However it works because banks at all times will have the ability to lend money to the Treasury, because when they lend (in our fiat cash system) they create new cash out of skinny air for the loan. Fri, 08 Sep 2023 13:37:17 UTC en