/biz/ - Business & Finance

Everything is a ponzi scheme, including money itself

>>14741427
its actually worse
banks just keep creating money and buying assets
its worse than a ponzi scheme

>>14741427
search for princes of the yen newfag

It's like a ponzi and a pyramid scheme all in one.

>>14741559
just play along goy

>>14741427
The banking system is a ponzi scheme

Here's how money is created:
The US treasury issues a government bond (which is basically an IOU) banks then buy these IOU's and turn aound and sell them to the federal reserve.
When the federal reserve buys these government bonds they pay for them with money that they create out of thin air

THIS IS HOW MONEY IS CREATED, OUT OF THIN AIR LITERALLY

how can this not be a ponzi scheme?
There are other factors as well, such as fractional reserve banking, which allows banks to hold only a fraction of the money that they say they have and loan out 10x more (literally)
this is yet another way money is created out of thin air

not even going to go into inflation, but its yet another hidden tax (theft) on the people

>>14741705
>fractional reserve
>10% collateral
you still live in lala land pirplepulled anon, it is actually much worse

>>14741820
yeah you're right they can go even lower, didn't mention this for the sake of understanding
this shit is FUBAR

>>14741705
>banks to hold only a fraction of the money that they say they have and loan out 10x more (literally)
More like 30x at best and 70x at worst.

>>14741427
How is it a ponzi scheme? Banks give out loans to people for things that they expect will bring them a greater return. Banks gives small business $200k to start up, the small business makes good money and pays back $300k over 3 years. Everyone wins.

>>14743769