/biz/ - Business & Finance

>>49257638
because they said it is

>>49257638
Shut your goy hole

>>49257638
Wait until you learn about zero reserve lending.

obfuscation through complexity

>>49257638
They wanted to create a leveraged house of cards to prop up the real estate market and give people access to money they haven't earned to fund their big businesses with loans.

After that they got rid of the gold standard. Now they can print infinite money regardless of how much money is in the bank thus making bank runs impossible. They can print away any debt the bank has. The printed money goes into real estate and stocks.

It's genius except it keeps asset prices going up forever while wages stay stagnant. Everyone is leveraged up to their ears, some people get to leverage more than others because of nepotism. If you don't own assets this system grinds you to dust.

>>49257638
What’s the issue? This looks revolutionary, now everyone can have good wages

>>49257638
Have you seen what rabbis do after circumcising a child? How is that legal?

>>49257638
This is the old way. There's no more reserve. They just make money.

cool it with the antisemitism bud

>>49257735
Basically, it’s a stupid Jew system and it sucks just like America.

>>49257735
It wasn't directly tied to real estate, it's just that cheap debt is a significant driver for economic growth (easier access to money makes it easier to start a business, or renovate real estate, or go to college), and cheap debt is easier to offer when you're the reserve currency of the world and most debts are paid off in USD that you can just print more of. Virtually every technological advancement of the past 30 years was powered through debt.
That's not to say that it's a perfect system, but it's absolutely better on the whole than the gold standard or any other system tied to physical commodities that are slow and cumbersome and more of a liability than a boon for economic development.

>>49258070
But it's all fake economic growth, someone has to pay for it and that someone is the youth

>>49257638
Because civilized populations who can refrain from bank runs can essentially “time share” wealth this way and have greater purchase power and better hospitals.
In OP’s picrel, with a 10% reserve requirement, the leverage on the initial deposit would eventually level out at 10x, so $10,000 of M2 money for $1,000 of M1 money deposited.
For a 1% reserve requirement there would be 100x leverage, and for zero reserve requirement, as we have now since the pandemic, there’s theoretically infinite leverage. Luckily the banks don’t want to lend out all their cash, as they can get risk free interest by sitting on some of it.

>>49258144
It's okay at least the boomers got to have fun for a few decades
Now the rest of the world gets to suffer with no end in sight

>>49258144
> But it's all fake economic growth
idk, the dominance of Google, Apple, Tesla, Amazon, Microsoft, and other post-FRB companies that dictate the way 90% of us experience the world seems like pretty real growth to me.
> someone has to pay for it and that someone is the youth
In most cases, inflation offsets the interest from these loans on a systematic level (not at an individual level, but most of these loans are for individuals but for businesses and intrabank). America's soft and hard power means there is leverage to change the terms of those agreements at pretty much any time. Further, it's a pretty foundational idea that you can create value from "nothing". Data has value despite being ephemeral, new inventions have more value than old inventions by improving what previously existed, breakthroughs in science allow for exponential growth in other areas of life. The economy isn't a zero-sum game, and never has been. You're caught up in "small number in, big number out" when that's literally the goal of all economies.

>>49257638
israel has no right to exist

>>49257638
Because otherwise politicans would not be able to buy votes with MMT money. We should start a bank that works with islamic banking principles with silver/gold reserves. MMT is a scam.

>>49258724

remove the word islamic and im on board

>>49258782
islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic islamic

Fish gotta swim, birds gotta fly, got gotta goyim

>>49258782
I recommend you read into islamic banking, it's basically banking before jews and interests took over. For example, a mortgage is basically done so that the bank buys the desired property, adds a pre determined premium and then sells the property to the borrower. The borrower then pays back in installments, no additional interests. With this system the bank is just as invested with the loan as the borrower as they have already paid for the property, and it is in the banks best interests that the borrower keeps paying.

Modern MMT shitcoin backed mortgages are different, the bank basically makes a profit regardless if you pay or can't pay for the property, also you can potentially get fucked by inflation due to FED magic tricks.

>>49259408
I miss Gaddafi bros. I feel like he was really the world's last shot before we descended into a new dark age. The bad guys won.

>>49259408
Any good books on this style?

>>49257638
what is money anyway
try to define it

>>49257638
Biz trannie jannies will give you a 3 day ban if you answer this question honestly.

You have to go to >>>/pol/ if you want the real answer.

>>49257638
>how is fractional reserve legal
because fractional reserve benefits the kikes
and kikes own the government making laws

>>49257638

Hey retard. This isn't how it works anymore.

>>49259408
What you are describing is fiducia as the Romans knew it.

But even the Romans came up with hypotheca before Caesar. Which is pretty much the mortgage as we know it today.

Fractional Reserve doesn't exist. The diagram in your picrel is nonsense.

In truth, banks creates ALL MONEY digitally when they issue loans with no need for prior deposits or reserves. Banks create new money AFTER the borrower signs the loan contract. The phony Fractional Reserve model pretends the money exists in an account before teh borrower arrives.

Proofs available at:

bank LIES dot ORG

Here's an admission from 1966 by the NY Fed.

Private banks create all money when they issue loans with no prior need for deposits or reserves.

proofs available at
bank LIES dot ORG

I don’t mind it being legal. I just want the law to make sure that banks who can’t cash deposits at any point in time get fucked. Right now it’s the opposite, the government backs the banks and tells ordinary Americans to get fucked

The Bank of England admitted in 2014 that banks create new money out of thin air with no prior need for deposits or reserves. In other words, they admitted that the Fractional Reserve model is bullsh*t.

proofs galore at:
bank LIES dot ORG

>>49257638
Banks do not draw down AT ALL when they lend. Most of the money supply is created when banks extend credit via lending.
Look up Richard Werner's empirical test of the credit creation theory.

>>49260934
You're damn right, brother! Thank God people are waking up! Banks create all money digitally when they issue loans with no prior need for deposits or reserves. The "Fractional Reserve" model shown in OP's picrel is nonsense. Richard Werner proved this empirically in 2014.

>>49260832
>>49260871
>>49260907

it's literally like monopoly money. but it's been this way for so long, when will it actually go boom?

>>49257638
>1 post by this id

>>49261015
It is worse than monopoly money because we are forced at gunpoint by government to use dollars to pay taxes. Refusal means prison or poverty. And the only way to get the dollars is to borrow them from bankers, who charge interest. It is literally a legalized debt-enslavement scam.

proofs available at:
bank LIES dot ORG

>>49261110
>we are forced at gunpoint by government
Yes and rightfully so because this country was founded on muskets and oh fuck I sound like a glowie don't I

>>49257638
>how is fractional reserve legal
We don't have fractional reserve system though. Banks do not land out deposits. Banks create money out of thin air. Reserves are only a regulatory requirement.

>>49259994
A unit of value
get wrecked

>>49259994
>what is money anyway
3 functions:
-medium of exchange
-unit of account
-store of value

>>49261001
yes. you can find his paper somewhere.

>>49257667
>search "zero reserve lending"
good god we're screwed
crashing the fucking us dollar with no survivors

>>49257638
They legalized monetary rape

>>49257638
More like
>deposit $1000
>bank loans $9000 dollars that dont exist because reserve requirements are met

>>49257638
https://www.youtube.com/watch?v=m6KqpG1xCrw&t=418s

the red pill... it's yours if you want it

>>49258351
>the dominance of Google, Apple, Tesla, Amazon, Microsoft, and other post-FRB companies that dictate the way 90% of us experience the world seems like pretty real growth to me.
Growth in the worst possible direction, yeah. Thanks to this botched system, these shitty companies can churn out consumer garbage with nigh zero quality control. Almost all tech is now geared towards datamining your every breath so that they can perfect their advertising to sell even more garbage.
Debt is a shortcut, and its being abused for all its worth. Sure, it can help small businesses, but for the most part its just FAGMAN companies siphoning money from the country at an exponential rate.