/biz/ - Business & Finance

>>51084723
Fractional Reserve doesn't exist, so you are parroting a fake model. That easily-debunked description of money creation has several flaws. It pretends that banks can't create new money until they acquire "high-power money" created by the central banks. This is not true: banks simply create new money after the borrower signs the loan contract with no need for prior reserve or deposits.

Also, the Fractional Reserve model pretends that the money being loaned must exist in an account somewhere before the borrower arrives. This is completely wrong. As I stated, the bank creates new digital money to lend AFTER the borrower signs the loan contract.

Here's an admission from the NY Fed from 1979. It says the bank takes the promise to pay (aka promissory note, aka loan contract) then creates new checkbook money called "customer deposits" (aka "demand deposits").

Here's a 1979 admission by the NY Federal Reserve.

Banks create new, digital money AFTER the borrower signs the loan contract. The entire money supply is created by private banks issuing loans.

Inflation is caused by too much money creation. Private banks create all money and all inflation.

Proofs at:
bankLIESdotORG

Oops! HERE is the 1979 admission by the NY Fed.

>>50953793
You are wrong. You are repeating the debunked "fractional reserve model," and the phony, "money multiplier effect."

Banks create new digital money with no need for prior reserves or deposits. Richard Werner proved this empirically in 2014. And now even the Bank of England admits this openly.

Banks do not lend customer deposits or excess reserves. They simply create new digital money to lend AFTER the borrower signs the loan contract!

Your silly fractional reserve/money multiplier models pretend that the money being lent exists in an account somewhere before the borrower arrives. This is completely untrue.
Maybe you should actually read the picrels I posted that show admissions by Central Banks and other monetary authorities. They OPENLY ADMIT that all money is created by private bank lending.

(The new, digital money created out of thin air by private banks is called "customer deposits," or "demand deposits.")

Proofs available at:
bankLIESdotORG

Here's more proofs for your viewing pleasure:

1979 NY Fed publication admits that banks create new money AFTER the borrower signs the loan contract. This new, digital money is called "customer deposits" and "demand deposits".

Legally, YES it is fraud. Morally, NO it isn't fraud.

Credit Card companies lend you digital money created in their own computer. (All money is created by banks issuing loans, NOT by government). Credit Card companies lend you money that didn't exist before you signed the loan contract. And they collect billions in profit for loaning money they never had to begin with.

This scam is completely immoral, but totally legal. But if you give these parasite the shaft, your actions are completely illegal yet totally morally justified.

Proofs at:
bank LIES dot ORG

Paul Krugman says that banks only lend out the deposits of savers. This in untrue. In fact, banks create new digital deposits out of thin air when they issue loans. Banks create new money to lend AFTER the borrower signs the loan contract.

Learn the truth about the bank-created money scam so you can see through all the BS about money, inflation, and the economy.

proofs available at:
bank LIES dot ORG

When you borrow from a bank, the money is created digitally AFTER you sign the loan contract.

The entire money supply is created this way; by PRIVATE banks.

Too much bank-created money creates inflation and hyperinflation.

Here the NY Fed admits that private banks create new money out of thin air when they issue loans. Banks create new digital money AFTER the borrower signs the loan contract.

All money is created by private banks issuing loans. And the 12 Federal Reserve banks are bank-owned corporations.

>>50130507
Thank you understanding the bank-created money scam! This system has existed since the 1680's when it was invented in London.

>>50024886
College can only be paid for with money. All money is created digitally by private banks. This money can only be created by BORROWING from a bank and paying interest.

The money used to pay tuition was created somewhere in the economy as a loan to a borrower. Therefore ALL college tuition is paid with borrowed money.

bankLIESdotORG

Here's an admission by the bank-owned NY Fed from 1979.

Banks create new, digital money out of thin air AFTER the borrower signs the loan contract. The new money created by private banks is called "customer deposits" and "demand deposits".

Step back now, foo. Here some excerpt from the 1979 NY Fed publication, "The Story of Banks."

This jive be revealin' that banks create new money out of thin air (digitally) after the borrower be signing that 'ole loan contract.

Word.

>>49394558
Your answers show that you:
1) Don't know what you're talking about
2) Are unwilling to learn anything new or correct your errors
3) Ignore facts
4) Haven't read any of the countless proofs I've posted

>Both create money but the fed for example created a fuckton of money through QE the past 3 years
The Fed has 3 parts: the Board of Governors, the FOMC, and the 12 Reserve Banks. Of these 3, ONLY THE 12 RESERVE BANKS create money out of thin air. And guess what? I've already given 3 proofs that the 12 Federal Reserve Banks are private, bank-owned corporations with money creation powers! So when you are saying "The Fed is creating money," you are actually agreeing with me that PRIVATE BANKS create money, NOT government.

>Wrong. It's how banks create money.
Nonsense. There has never been a single study proving the Fractional Reserve model exists. Richard Werner studied banks during the loan creation process and proved that banks are creating 100% new digital money with NO NEED FOR PRIOR RESERVES OR DEPOSITS. A link to his peer-reviewed paper is available at bankLIESdotORG

>This system didn't exist in the past
The present system of bank-created money has existed since being legalized in London, England in 1680. It quickly spread throughout the world since then.

>The prime rate is determined by the central bank.
No, the Fed sets the "Fed Funds Rate." But banks charge whatever interest rates they want. For example, in 2010 after the last crash, the Fed Funds rate was near ZERO, but my local commercial banks were charging around 5%. Study some charts instead of acting like a parrot and you'll see that the Fed has little control over most interest rates.

>You're just some schizo
I've provided supporting evidence for every claim I've made. You've provided ZERO proofs, but you rant like a hysterical woman. Which one of us is schizo?