> In an economy with a working financial system there is no such thing as abundant or scarce capital, because financial capital is not used up when an investment is made, but merely transferred to the accounts of vendors and employees who then store it in funds which in turn seek new investments elsewhere.
If you invest 10 million in my business and I use it to buy 10 million worth of 30-year treasury bonds, how exactly is this capital “seeking new investments”?
Also, if a capitalist has only $10 million to invest, and others have already started putting it all to work, there is nothing left for you if you come along afterward.
If you invest 10 million in my business and I use it to buy 10 million worth of 30-year treasury bonds, how exactly is this capital “seeking new investments”?