• 13igTyme@piefed.social
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    6 days ago

    Is it really generating money if it’s a company spending money it doesn’t have on another company to then pay the original company to provide what was originally promised as a service/product?

    • I Cast Fist@programming.dev
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      6 days ago

      Factually speaking, only the debt is “generating” money, since the entire concept of bank loans reside in their capacity of lending more than they actually have and charging interest back.

      Regarding nvidia and the companies it is giving money to so they buy its chips, lots of legal loopholes make it count as “totally real investment”. That’s why I said the thing generated said money in GDP, which has little connection to reality.