If a single US Billionaire withdrew all of their money from a bank, and burned it all, how bad would it be?This is only an IF question. I am aware that burning federal bank notes is illegal, but assume this person doesn't care for jail time. | |
If a single US Billionaire withdrew all of their money from a bank, and burned it all, how bad would it be?This is only an IF question. I am aware that burning federal bank notes is illegal, but assume this person doesn't care for jail time. | |
The bank would not have that much currency on hand so it would take some bonds to the treasury and ask the the print the money to give him, and would not care what he did with the money. However losing a billion dollars in deposit would cause all except very big banks problems since they loan out most of the money they have on deposits, so the would have to sell assets (for a bank assets is the sum of all the money owed to them plus the buildings they own) to pay for the bonds.
Except for the bank there would be no problems because there is about 800 billion in circulation and the treasury will print money in exchange for government bond on request and even replaces money that you can proves has been destroyed free. The money that matters to the economy is currency plus deposit at banks plus bank reserves called M1 and it varies more than billion every day. http://research.stlouisfed.org/fred2/ser...
It wouldn't be a big deal at all. Bill Gates, maybe, but a billion dollars isn't that much. The Federal budget is $3 Trillion, the total Dow Jones is worth (roughly) $17 Trillion.
A billion dollars is less than one-ten thousandth of the US GDP, so I wouldn't think it would be noticed. Congress wasted that much of your money over the weekend.
billionaires do not actually have a billion dollars laying around, they have their money invested
It would be GOOD. It would reduce the inflation.
Do you mean the carbon footprint?
They should recycle, I happen to recycle money so please have them contact me ASAP!
very bad