I agree. Let's consider a little hypothetical adventure:lordmetroid wrote: No, you clearly say it yourself. The money doesn't disappear.
The money was given to someone else when you bought your stock or house or whatever, it was never destroyed. Then when you sell, you receive someone else's money.
Paying off credit is the only way currency can be destroyed.
Pointedstick has $500,000. I have a house. Lordmetroid has $300,000. Together we have $800,000 and a house.
PS buys my house. I get $500,000 (thanks, PS!). LM covets PS's house, but keeps his $300,000 for a time when houses aren't so expensive. Together, we have $800,000 and a house.
The housing market falls and PS is forced to sell. LM says, "I'll give you $300,000 for it." PS grumbles, but accepts the deal. Final score: LM, one house; PS, $300,000; me, $500,000. Together, we have $800,000 and a house. No money, or real estate, has been destroyed.
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I'm reminded of the classic puzzle of the three fellows who get a room for the night at a hotel. They are told its $30 for the night. They each pay $10. The owner realizes later on that he made a mistake -- the room costs only $25 -- so he gives the bellhop five dollar bills to take up to the room. The bellhop is a bit of a cad; he thinks up a scheme. "I'll tell these three fools that the room is $27 for the night and I'll keep a couple of bucks for myself. Nobody will be the wiser. My boss gets what he wants, they get a refund -- what's not to like?" The three travelers are delighted to each get a dollar back. They've paid $9 each. Add on the bellhop's $2 and that's only $29. Where did the other dollar go?