Private Banks Create All Money, NOT Government!

[Anonymous No.49421170]

Why are 99% of the population unaware that private banks create the money supply by issuing loans?

And why do so many 4chan knuckleheads believe in the debunked "Fractional Reserve" banking model?

And why do most posts containing the truth about the bank-created money scam get removed by Jannies within an hour or two?

[Anonymous No.49421230]

>>49421170
It’s a blend of both but private banks are responsible for the vast majority
A lot of the contrarian opinions here actually glowie troll farms paid to spread banker bullshit

[Anonymous No.49421234]

Here be the evidence, child.

Exhibit A: Admission from 1966 NY Fed publication.

[Anonymous No.49421260]

Lookie, lookie, child: Here be exhibit B.

We be talkin' an admission from US Treasury Assistant Counsel Russel Munk from 1982.

He be speakin' the troof that all money is created through the extension of credit by private commercial banks.

[Anonymous No.49421280]

We know cunt, however the fed also increased cash in the economy through loose monetary policy. It's not technically creating money however they don't plan on unwinding their entire balance sheet so it remains in the economy

[Anonymous No.49421292]

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.

[Anonymous No.49421372]

>>49421280
Aw, snap. Child, you be missin' the point that the Fed be havin' 3 parts: The Board of mofo-ass governors, the FOMC, and the 12 Regional Federal Reserve Banks.

And guess what, Jack? Only the 12 Fed banks be having dat 'ole money creation power. And they be private corporations owned by they member banks and sheet.

Here, Ima lay down some proof, child. Dis ne a short 15 minute interview with Chicago Fed Spokesman Jerry Nelson. This crackah be openly admitting that the 12 Fed Banks is private corporations owned by the banks in they district. And these privately-owned fools be creatin' dat new, digital money out of thin air, child.

(Skip to 4:17 to hear his honkey-ass admission)
https://www.youtube.com/watch?v=6N-8DyPoNgU

[Anonymous No.49421441]

Step back, Jack! Here be exhibit E coming atchoo. Here be a Library of Congress admission that them 'ole private banks be creating new money out of thin air when loans are issued. And when fools pay back dat sheet, the principal done become "extinguished", meaning that jive-ass sheet vanishes from existence. But dat interest collected by the bank continues to exist as profit.

(The new money created by private banks is called a "customer deposit" or "demand deposit", child. Fo' ril.)

[Anonymous No.49421505]

Aw, hell naw! Not all crackuz is bad, jack! Here be German mofo professor Richard Werner talkin' bout some empirical study that proved banks create new money out of thin air (digitally, in their computers) AFTER the borrower signs the loan contract.

This mofo publish that sheet in a peer-reviewed journal in 2014, and ain't a lone soul refuted he scientific study in all dem long days, child.

Aw, Shazam, bee-ach! Here be the link to dat 'ole 22 page peer-reviewed scientific study:
https://www.researchgate.net/publication/265909749_Can_Banks_Individually_Create_Money_Out_of_Nothing_-_The_Theories_and_the_Empirical_Evidence

[Anonymous No.49421545]

Dis gettin' real now, bro. Here be a US Treasury admission that the money used to pay interest on a loan must also be created somewhere else in the economy as another loan, child. Why the US Treasury be admitting all money is created by banks if it ain't the troof now, child?

[Anonymous No.49421652]

Even dat 'ole stodgy Bank of England be admittin' that private banks create new, digital money when they lend. After that honkey Richard Werner published dem proofs in 2014, the Bank of England whipped out a LONG admission dat private banks be having money creation power.

The research paper be called, "Money Creation in the Modern Economy", foo. They ain't jivin', neether.

[Anonymous No.49421721]

What is reverse repo

[Anonymous No.49421770]

>>49421721
Reverse Repo be day bank-owned Fed creating new, digital money out of thin air to buy sheet. The stuff they be buyin' be securities, Jack.

But where all dat money supply be originatin', child? Sheeeet, all money be created by private banks issuing loans.

[Anonymous No.49421777]

Banks still have to be careful on how much they lend, or else they risk going into default. With Dodd-Frank in place, bank deposits become worthless bank stock.

This is an interesting loophole since if a bank does fail, what takes precedence, FDIC insurance or bank bail-in laws?

If that is the case, US treasuries are undervalued.

[Anonymous No.49421821]

>49421170 (You)
>wahh why do my posts get removed!?
because you just spend an hour schizo-replying to your own posts, that's why.
might want to consider the situation in which the fed creates money to buy bonds and MBS. they are the lender of last resort, they can create liquidity at will, and none of the dog shit you post refutes this, it just vaguely refers to "bank credit". we know damn well private banks create money too, and they are shareholders of the fed you 90IQ retard.
sage in all fields.

[Anonymous No.49421838]

>>49421170
private banks would lose more reserves in a free market if they loaned out higher percentages of their reserves than their competitors. This is because on net, their clients would spend more, which would cause their reserves to go to other banks.

[Anonymous No.49421845]

>>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."

[Anonymous No.49421850]

This is some real smooth brain stuff.
Who is arguing against this?

[Anonymous No.49421858]

>>49421821
The Fed is powerless. That one time monetary pump isn't going to be enough to counteract the structural deflation that is inherent in the monetary system.

The entire system relies on "forward guidance", or being able to delude people like yourself to borrow/pledge collateral and spend (that very spending is what causes inflation, not the Fed).

[Anonymous No.49421870]

>49421845 (You)
if you stop speaking like a god damn retard maybe people could tolerate you for more than a few seconds.
please take some of that bank credit, invest in rope, and find the nearest tall tree to climb for me.

[Anonymous No.49421889]

>>49421845
They still need a "borrower" to delude into borrowing that money that was created out of thin air.

Whether that borrower is one of you, a business, a corporation or the government, SOMEONE has to borrow something (from thin air) to maintain spending at a "healthy" level.

A mortgage is nothing more than a promissory note that you own yourself in 30-years.

[Anonymous No.49421898]

>>49421821
Banks create ALL money, not SOME money. foo. I done lay down dee proof. You kain't refoot nuttin', so you try to dis and talk smack.

I already show dat the 12 Fed banks be private corporations with money creation powers.

Additionally, here be one of many US court rulings dat be talkin' det same troof.

[Anonymous No.49421906]

>>49421858
Ok genius, show me anything I said that even indirectly refers to this. I'm not saying shit about the fed's ability to successfully do anything, just that they can and do create money by purchasing treasury bonds, and recently, MBS and other debt.
I'm aware our financial system is nothing to stop market forces in the long term, don't lecture me you preachy cunt.

[Anonymous No.49421914]

>>49421850
You be readin' my brain waves, child. You got the koolness permeatin' in yo' vertebraes and sheet.

[Anonymous No.49421933]

hey OP
can you answer us what is the main collateral used for bank credit after the SLR rule was passed after the 08 debacle

[Anonymous No.49421943]

>>49421845

I don't think you understand what you are trying to say.
Let's just say a company has 100,000 shares.
Those shares trade for $1 each.
Today more people want the shares than there are shares and the price pushes higher and 100 shares are sold for $1.10 each.
Even though only $110 dollars changed hands we now say the company is worth $110,000 when there has only been a $10 change in the capital trading hands.

This is how the monetary system functions.

[Anonymous No.49421945]

>49421898 (You)
>wahhh muh private corporation
Yeah whatever grandpa, you're only winning this argument on semantics. Already said we know that the fed is privately owned by its shareholding banks, you're just being a dumb nigger about technicalities.
Stop wasting threads on this drivel.

[Anonymous No.49421966]

>>49421906
The Fed has 3 parts: the FOMC, the Board of Governors, and the 12 Regional Federal Reserve Banks.

ONLY the 12 banks have money creation powers. And they are private corporations owned by their member banks.

[Anonymous No.49422023]

>>49421945
Prove me wrong by showing that government creates money. Better yet, show an empirical study proving the Fractional Reserve model is real.

Face the facts: ALL money is created out of thin air by private banks issuing loans. Government gets almost all revenue from taxation and borrowing. If government could create and spend debt-free, interest-free money into circulation, the national debt would be ZERO.

Wake up, debt slave.

[Anonymous No.49422045]

>>49421906
None of the money the Fed "prints" ever gets to you. The Fed is a monetary roach motel, money never leaves. When an MBS, treasury or other cash equivalent is purchased by the Fed, it stays there until maturity.

When they buy MBS and Treasuries, the interest payments on those bonds do not go back into the economy. Instead they are locked up in the Fed, never to see the light of day.

Normally these bonds would be owned by the public, financial institutions or overseas entities. The interest payments on these bonds accrue to the bondholder, who can spend that income.

When the central bank ends up owning all the debt, the quantity of money shrinks. Japan is a good example of 30-years of "money printing" doing absolutely jack shit.

[Anonymous No.49422053]

>>49422023
>>49421966
You really are preaching to the choir here

[Anonymous No.49422085]

>>49421943
No, the monetary system functions this way:

Government forces us at gun point to use dollars for taxes, fines, fees, licenses, etc. Anyone refusing to use dollars becomes impoverished or imprisoned.

But government doesn't create any dollars; only private banks do. And the only way to get new dollars it to borrow them from banks and pay interest.

And it is 100% mathematically impossible to repay all the bank loans because only the principal is created, but never the additional interest that is due.

The monetary system is legalized-counterfeiting, debt-enslavement scam.

[Anonymous No.49422135]

>>49422045
You are confused. A treasury is not money; a treasury is a PROMISE TO REPAY MONEY plus interest. The treasuries purchased by the Fed may sit in an account somewhere forever, but the money created out of thin air by the bank-owned Fed to purchase treasuries circulates along with all other money.

[Anonymous No.49422176]

>>49421170
You are retarded, central bank obviously controls it all, try to make your own bank without loicence and see for yourself

[Anonymous No.49422178]

>>49422085

Shall we look at your analogy to see how crazy it is?

Let's just say I am a farmer who owns a field.
I don't have the money to purchase seed.
I borrow $1,000 from the bank at 5% interest.
I plant the seed and harvest the crops.
Upon harvest I sell the crops.
I repay the bank $1,050 and pocket $8,950

Sure someone else had to buy the crops, but this is how economic growth works, there was nearly $9,000 in equity created.

[Anonymous No.49422537]

>>49422178
>economic growth
the banks need to continuously loan at increasing volume to sustain growth otherwise everyone goes bankrupt. Debt based money creates a boom bust cycle. Banks see the economy as good and loan out money which further stimulates the economy, but when they see it as bad they stop loaning and the money supply dries up and you see big bankruptcies. In both situations banks win.

[Anonymous No.49422595]

>>49422045
Alright genius, well fucking aware that the Fed eats up the capital gain or less as well as the interest payments. Nice diversion.
Maybe you want to tell me where the principal goes? You know, when they initially buy the Treasury, MBS, or debt instrument?
It goes to the fucking seller, dingbat. Buyer and seller in every transaction. One gets the bond, the other gets the cash. If that so happens to be the treasury, congrats, you just invented deficit spending and now you can pay the leeches on the federal payroll!

[Anonymous No.49422621]

>49422023 (You)
i'm well aware we are all debt slaves, bark up another tree you nigger.

[Anonymous No.49422745]

At least make the conspiracy entertaining, nobody is going to your website and click viagra ads when it's just fractional reserve banking. Pick aliens or meteors man

[Anonymous No.49422770]

>>49422135
>>49422595
according to jeff snider treasuries are money because they're used in the bank repo markets as collateral as opposed to cash. Apparently it's important to the global economy and the cause of the inverted yield curve because the FED has taken too many debt instruments out of circulation

[Anonymous No.49424081]

>>49422537
You can ask Bear Stearns and Lehman equity holders how much they won. And you should try to wrap your head around negative yields on certain sovereign bonds.

[Anonymous No.49424146]

>>49421170
>ctrl+f "jew"
>0 results

[Anonymous No.49424196]

known this since zeitgeist doco was released. its why I bought bitcoin in 2013 for $40 after mining it in 2012.
Guess what, BSV is bitcoin, its the same bitcoin I bought back then and its the only way we can destroy the debt based global finance system.
Nothing else has the scale to do so while remaining decentralised with a locked down protocol.
Eth cant scale, anything built on eth cant scale, Btc cant scale and is centrally controlled, ripple can scale but is centrally issued and controlled.
Only BSV can free us, its why it gets attacked so much. (((they))) fear the big blocks

[Anonymous No.49424534]

>>49422085
I think the federal government has money creation power too, they spend money into existence.

[Anonymous No.49424594]

>>49424534
To pay a creditor, the federal government sends instructions (not dollars) to the creditor’s bank.
The instructions are in the form of physical checks (“Pay to the order of”) or electronic messages.
The instructions tell the bank to increase the balance in the creditor’s checking (M1) account.
The instant the bank obeys those instructions, new M1 dollars are created and added to the M1 supply.
The bank then balances its books by clearing the instructions through the Federal Reserve, which debits the Treasury, the owner of infinite dollars. No money is destroyed because infinite minus any amount, still is infinite.

When you pay creditors, you follow the same first four steps. The difference is in step #5. The Federal Reserve sends your instructions back to your bank, telling your bank to reduce the balance in your checking account. At that moment, the dollars you created with your check, immediately are destroyed.

There is a moment of time, between when your instructions create dollars and when the dollars are destroyed. Those dollars often are known as the “float.”

When you spend, the money you create — the “float” — exists anywhere from a few seconds to a day or two. When the federal government spends, much of the float is permanent. It stays in the economy. The rest is destroyed by federal tax collections.

The “float” money created by the federal government — the money that is not destroyed by taxes — is called the federal debt.

In short, federal spending creates dollars and federal taxing destroys dollars. The federal deficit is the net number of dollars added in any single year. The federal debt is the net total of all deficits.

Contrary to popular wisdom, the federal deficit and debt are not a burden on the federal government. They are not a burden on future taxpayers. To “pay off” any part of the federal debt, the federal government merely returns dollars that exist in T-security accounts. No taxes are involved.

[Anonymous No.49424662]

https://ourmoneyus.org/how-public-spending-creates-money/

this is the only other site I've seen which puts it this way
>Because our federal government is a currency issuer, it does not need revenue from taxes or bonds in order to spend. Therefore, the way of understanding public spending, which offers the greatest clarity, is that whenever the federal government spends, it effectively creates the money it uses to pay the recipients of its spending. At the simplest and most superficial level, the government spends the money into existence by writing a check to the recipient. When the recipient deposits or cashes the check, the Federal Reserve makes sure the check clears. For beginner purposes it is that simple.
all the other shit about balancing budgets is a lie.
commercial banks create money through lending, but they are indebted so they still need to act rationally to prevent bankruptcy. now, the private Fed banks, idk I guess they don't need to because they can't really.
Federal Government directly injects USD to the system through fiscal spending, goes into debt but a country that issues its own currency can't go insolvent. It can only suffer a currency crisis whereby people don't believe in its value or because its real economy collapses and what it can buy is worthless (as a thought experiment, imagine the USD can't buy anything because US doesn't produce anything, nobody wants FAGMAN products/ US housing for whatever reason is undesirable, etc.)

[Anonymous No.49425112]

>>49424196
Shut up Craig

[Anonymous No.49425962]

No matter how you slice it the overarching repo market and Eurodollar system in general collapses the second sovereign bonds disappear from collateral pools. You are right that Fed/Treasury have very little control but right now the entire thing depends on their "no-risk" liquidity. Everything will collapse soon though

[Anonymous No.49426695]

>>49422085
Find a better system.
all creature comforts have been built by a person
or entity taking on debt to build.

[Anonymous No.49426726]

>>49421170
Every loophole that banks have was created for them by the Fed. Glow more faggot

[Anonymous No.49426775]

The fed does facilitate this by making money "free" for banks with little to no interest rates.
But, yes, whatever debt is considered money, when you take a loan that money is "printed"

[Anonymous No.49427175]

>>49421170
this is less true than ever. reserve requirements are indefinitely suspended and the fed can now directly buy assets of virtually any kind with a special purpose vehicle (shell company). a bank can no longer compete with the fed in either direction.
>the fed isn't the government
retard
>fractional reserve is debunked! also banks create money by loaning a fraction of their reserve
lmao it's incredible what an 80 IQ looks like, isn't it