/biz/ - Business & Finance

>>51000237
Banks create new digital money with no need for prior reserves or deposits. Richard Werner proved this empirically in 2014.

You are repeating the debunked "Fractional Reserve"/"Money Multiplier" models. They Do not exist! Banks simply create new digital money when they issue loans. And the 12 Federal Reserve banks are privately-owned by the banks in their district. So saying "The Fed is in control" is actually admitting that private banks are in complete control!

Proofs available at:
bankLIESdotORG

>>50955381
You don't get it. You are wrongly assuming all money is created by the central bank or government, and that banks only lend out money that has been deposited with them.

In fact, banks DO NOT require reserves or prior deposits to lend money. They CREATE THE MONEY THEY LEND digitally, out of thin air. This is how the entire money supply is created.

Banks do not lend out deposits: bank lending CREATES all deposits!


And since banks create all money, banks alone are responsible for inflating the money supply. Inflation can only end when we abolish bank-created money and transition to a debt-free, interest-free money system.

Proofs at:
bankLIESdotORG

>>50721000
It matters vitally because we are all enslaved to private bankers.

And just because you learned it in 2010 on youtube doesn't mean anyone else knows.

And BTW, there was no shadow-banning in 2010. Nowadays, any video on youtube mentioning the bank-created money scam gets buried.

Quit being an arrogant know-it-all and get to work spreading the word. We CAN abolish this system, but we need tens-of-millions of people to learn it exists.

>>49421777
You be gettin' sidetracked, foo!

Replace the word "lend" in your comment with "create out of thin air". Here's how it be readin', child:

"Banks have to be careful how much they CREATE OUT OF THIN AIR, or else risk going into default."

>>49410235
30 year mortgage rates rose and dropped by 0.75% while fed funds rate was stuck at near zero. Therefore, according to your post-hoc logical fallacy analysis, a stable Fed Funds rates has the power to both raise AND LOWER mortgage rates simultaneously!

I can find charts showing 30 year mortgage rates moving in both directions while the Fed Funds rate was motionless at near zero%. This proves that the upward and downward motion of the 30 year mortgage rate cannot be caused by movement of the Fed Funds rate.

Correlation does not equal causation. Banks create all money when they issue loans, and banks charge whatever rates they want (as long as they don't exceed statutory maximum rates).

>>49393608
>Of course, but inflation would be at a much higher level.

You don't know what inflation would be if government created all money. Neither do I, because it would depend on a lot of variables. I am not advocating government-created money; I am exposing the FACT that banks create all money, NOT government, and therefore BANKS create all inflation, NOT government.

>Why don't we just abolish central banking and fractional reserve banking entirely?

You are confused. First of all, banks create all money with no need for reserves, deposits OR central banks. If central banks vanished overnight, we would still have a money system controlled by private banks.

The Fractional Reserve model is a hoax that doesn't exist. Richard Werner proved this in 2014. The Fractional Reserve model pretends that the money being lent must exist in an account somewhere before the borrower arrives. In fact, the money loaned by banks is created digitally AFETR the borrower signs the loan contract. The Fake Fractional Reserve model protects banks from blame by pretending they are unaware of their role in inflation, recessions, depressions, hyperinflations, etc. In fact, bank owners are fully aware that they create new digital money out of thin air.

>This system is the result of government intervention, not the free market.

Government participates by forcing us at gunpoint to use bank-created money. Yes, government is involved. But this doesn't change the fact that ONLY BANKS create the money, not government. For example, if I forced you at gunpoint to buy my grandmother's cookies, it doesn't mean I am baking any cookies.

>At interest rates determined by the ECB.
That is a myth. The interest rates we encounter the most as consumers are set by private banks, NOT the central banks. These rates include credit cards, home mortgages, business loans, and auto loans.

>You're just a braindead MMT clown
Nope, I hate MMT.