Is central banking, fiat money, and fractional-reserve banking the greatest ponzi scheme of all time Jow Forums? I can't believe the Keynesians have managed to convince the entire population that it is somehow morally okay to give a privileged group of people (bankers) the authority to literally create money out of thin air without any reprecussions with the implicit support of the state through the lender of last resort facility.
How the fuck does this still exist in 2018 and why is no one talking about it?
fractional reserve banking isn't inherently bad. the problem with its implementation is the precedent of not letting banks fail, as well as various temporary measures becoming permanent such as the suspension of gold convertability and the existence of the FDIC as a universal put option on depositor liquidity with the costs socialized
Andrew Ross
2008 is what happens when the system fails in 2008 700 billion dollars of taxpayer money were spent to bail out banks. the next year, the CEO of a bailed out bank got a $500m eoy bonus.
this is why bitcoin was created. once crypto replaces fiat, it'll be impossible to create money out of thin air. people will be able to operate on 'promises', but everyone what's actual money and what's maybe-money
Mason Rogers
Yeah, I agree, I should have been more specific. It is the state-bank syndicate which is what I am referring to.
Daniel Williams
we've basically had that before with gold, a lot of people weren't happy with it. and both the world population and economy double roughly every 50 years. for everybody to maintain the same amount of value with a fixed amount of money, they would have to lose half their coins every 25 years. which is fucking ridiculous.
You go to a club or theater, you put your coat in the cloakroom, the attendant gives you a ticket which is a paper note that allows you to claim your coat back. Then the attendant gives out more tickets than they have coats in the room. Then you go to get your coat back, and you find several people have competing claims on your property.
nation's already have the right print as much money as they see fit, fractional reserve isn't a fundamental change. if anything it ties the creation of money to economic activity; money is being created with the express purpose of being used, instead of the government guesstimating the money supply needed months after the fact.
Jordan Murphy
Who says everybody needs anything? Fuck everybody, we keep to ourselves and our kin.
Nicholas Jenkins
Niggers finna boutta get dumped on. Nigs get nigger, whites get richer
Angel Sanchez
So vote with your money and don't keep it in a bank.
Nolan Sanders
>nation's already have the right print as much money as they see fit
Another stupid libertarian sore spot along with inflation. If you stopped thinking of money as a stack of shiny rocks and instead of what it really is, an abstract flow of ideas. You would understand. The elegant efficiency of the modern economic system (ok the fundamentals of it, certainly not the entire thing).
Ask Keynes was based.
Angel Rivera
Banker here. Just a reminder this leverage is only for commercial banks. Retail banks have to operate within a loan to deposit ratio range. Most retail banks will not go over 110%. Also, the fdic literally backs your money, so even though we don't have enough cash on hand for our depositors, we pay insurance to make sure you'll still get paid.
You all sound like financial retards and should probably consider suicide for posting this horrid trash on a business board.
Jackson Reyes
see
Aaron Gomez
Keynes was literally and unironically a pedophile.
Everyone thinks that the FDIC just prints cash to cover lost deposits. If anyone understood it’s actual insurance premiums pooled from every member bank maybe they’d be less butthurt about it. But then again if they understood anything they learned in Econ or Finance 101 they would be less butthurt too. But no they got a C or D and said “fuck this shit it’s all a lie anyway”.
Lincoln Richardson
right and the bank doesn't pass that cost along they just eat it. fucking idiot.
David Edwards
The very idea that econ was anything beyond "we use fiat and that's a good thing" is laughable. Teachers have no concept beyond vague slogans and there's no school textbook going in detail about the implementation.
Leo Young
>a lot of people weren't happy with it. Jews aren't people.
