[jaxtellerSoA]

How do you guys think the money supply works?

I mean have never even thought about it?

>What happens when there are new entrants to your economy?

Nothing.

>Are they all forced to split the 100k?

No, if the new entrant can provide value then someone that already has some that $100K can give it to them for a good or service.

>If not, where does new money come from? Magic?

Comes from the Federal Reserve, when they decided to increase the money supply. The problem is you are on a never ending treadmill that is designed to have bubbles and failures, not that new money has to sometimes be created.

[Matumio]

> Comes from the Federal Reserve, when they decided to increase the money supply.

Wait, really? I was pretty convinced that the vast majority of new money is created by private banks, when they decide to loan out money that nobody has paid in. It's called fractional reserve banking.

[fjp]

Private lending actually destroys money supply, contrary to the "money multiplier effect". (Fed recently admitted this was bullshit) that has been taught for a long time. Government/public lending creates money supply