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{Economics}
{Economics}
joined mar 2013
generate bitcoin with reference codes.
topics on {Economics}
Goodbye IRL Hello Meritocracy
the same old revolution is still avoidable
jksez
by  jksez
What if Reparations for Slavery were Paid Instead of Bank Bail Outs?
24601
by  24601
What is Surveillance Capitalism?
E.T.
by  E.T.
How Can the Stock Market Go Up When So Many People Are Unemployed?
a history of mercantalism
yagz
by  yagz
AI So What. There will always be work.
how hard is it to get skills anymore?
coldspurs
by  coldspurs
The Gig Economy Is Failing. Say Hello to the Hustle Economy
thomasTank
What is Neo Feudalism?
+21
w4wendetta
How do banks "create" money?
I know they make lots of it with fees, I can see this shit in my own account but someone tried to explain to me that individual banks can create money out of this air and I didn't understand.
+1
Jakko1992
Jakko1992
I thought we just discovered all money, is in fact, cake.
+3
Gods Connect
Gods Connect9.7/10
Banks literally print money and we are expected to accept it has value when in actual fact there is nothing backing fiat currencies anymore. Used to be that dollar was backed by gold reserves then oil but now its backed by the promise... Basically the whole world is in a debt/credit spiral that will unravial at some point...
+3
Jamjarjim
Jamjarjim
One word. Credit.
+1
Haze4daysCheesse4zs
Haze4daysCheesse4zs
They don't, they make up fiat currency (£, $, € ect ect) just a bar code number to give it a vaule. Money is only something that can be equally treaded fairly ie gold.
+1
Beauteous
Beauteous
good thread :)
+2
bigbilllittleben
bigbilllittleben9.4/10
not individual banks! but they do make money lol dont make much sense does it

little ben
+2
Haze4daysCheesse4zs
Haze4daysCheesse4zs
When a bank makes a loan it is creating fiat currency
+4
goldman sucks
goldman sucks
yes, individual banks, check out the werner stuff in this thread. basically it's just accounting that makes them book things twice. if it's on a bank's books it is money.
+6
BUDZUK
BUDZUK9.7/10
In the fiat monetary system that capitalism operates money is simply printed or keyed into existence, in the form of debt. When banks lend money, like for a mortgage or a loan, they don't lend the money that is located in their physical or virtual vaults/customer's accounts, they simply key a few buttons on their keyboard and say here's £10,000, now you owe us £10,000, oh and by the way you'll have to pay us interest on that £10,000. So now there's £10,000 more money in existence but, importantly, not the interest that you'll have to pay on that £10,000. In this way there is more money owed than actually exists. All outstanding debts can never be repaid because there isn't enough money in existence. It's called debt slavery, designed to keep us indebted to the masters, who get to create it out of thin air. The measures that the government have taken to provide financial assistance to industry, £350bn and counting courtesy of the chancellor, and workers and the self employed, guaranteeing 80% of salaries, is money that is simply being printed into existence, but it is money that is loaned by the central bank, who created it out of nothing, to the government, and is added to the national debt. The masters create money out of nothing, then lend it to the taxpayer at interest to the tune of billions of pounds each year, and that's just the interest :)

Please see James Corbett of www.corbettreport.com
and one of his many excellent documentaries;
"Century of Enslavement: The History of the Federal Reserve"
https://www.corbettreport.com/episode-292-century-of-enslavement-the-history-of-the-federal-reserve/

YouTube link;
https://youtu.be/5IJeemTQ7Vk

and especially his website for more depth into how this works and how it all started, as well as reasoned and referenced information about what's currently happening in the world, and what has previously happened, and where this all might be leading if we allow it.

Please check out Spiro Skouras' YouTube channel also;
https://m.youtube.com/channel/UCkKOQNYoZjaa_8V0uPOueeQ/videos

Being high at the time will only heighten the experience :)

Kind regards:)
+2
Gods Connect
Gods Connect9.7/10
Great post! Corbett is a champion!
+8
British Bulldog
British Bulldog9.9/10
Quantitative Easing.

The ECB have been doing it for years, with no federal reserve at all.

All countries do it to a greater or lesser extent.

The reason the (US) dollar is so popular is they have a federal reserve (gold).

The reason the Euro is failing is it's based upon the German banks and their megalomaniacal desire to control Europe.

There is no EU federal reserve. Only German banks.

When the EU (and Euro) collapses, Germany will be fine, the other 26 member states will fail.

Invest as you will.

Cheers. BB
+7
Beauteous
Beauteous
Money is just an I Owe U ... it says so on your GBP £ notes ! something like ... ''I promise to pay the bearer the sum of twenty pounds'' .... hmmm? but you are handing over a physical £20 note made out of paper or plastic. BUT it still is an I OWE YOU, because the actual note is a ''promise TO pay'' .. the note is not backed up by gold anymore...back in the day... money was real... now it is just digital numbers on screens, according to my limited knowledge about it. I will keep up with this thread tho, as I would like to hear what others on LB think :)
+7
Smokeysworld
Smokeysworld
Banks also "Trade Client" funds in a range of assets from , bonds, to stocks hence why you will receive interest each month or annually on your account; that is miniscule compared to what they generate from trading your funds (which is also why your funds are insured). but there are many aspects to this and variables as i've read below each of which is pretty much true.
+3
Jamjarjim
Jamjarjim
Spot on smokey!
+7
defnote
defnote
"since banks work as the accountants of record – while the rest of the economy assumes they are honest accountants – it is possible for the banks to increase the money in the accounts of some of us (those who receive a loan), by simply altering the figures. Nobody else will notice, because agents cannot distinguish between money that had actually been saved and deposited and money that has been created ‘out of nothing’ by the bank” - Richard Werner
+3
ravi smaalz
ravi smaalz
Yes if they say its "in the bank" that's all it takes to do what they want with it - regardless of whether it exists.
+14
sidetracked
sidetracked
When banks create a new loan they must also create an equal and opposite liability, in the form of a new demand deposit. Meaning when banks loan they create money out of thin air. They simply make it exist.

There is a really good series on YouTube that goes in to great depth about how it all works.

https://www.youtube.com/user/whygoldandsilver
+6
bubba2488
bubba2488
nice man, thanks for sharing will 100% be putting this on later
+4
sidetracked
sidetracked
I binged watched the series in one night. No regrets haha. Really gets the brain matter flowing. That link is to his main channel, it seems he has a lot of new content. Even some videos on crypto.

This is the link to his main series I was talking about, that goes in to great depth on banking, the federal reserve, fiat currency and economics as a whole. Enjoy!

https://www.youtube.com/watch?v=DyV0OfU3-FU&list=PLE88E9ICdipidHkTehs1VbFzgwrq1jkUJ
+5
kc4
kc4
thanks muchly, think you might like richard werner
+2
sidetracked
sidetracked
I do indeed. Interesting solutions. Mike's series (if I remember correctly, it's been a few years) doesn't really go in to any solutions to the many economical issues we have, if at all. So this was a nice listen. Ty!
spiceX1
by  spiceX1
Frédéric Bastiat
Financial returns of fascism?
The problem of doctors’ salaries (atlantic)
why is empty housing a popular investment?
fan4
by  fan4
When will AI replace every job?
Machine Money and People Money
mr slowbot
Why is redlining considered immoral by most people?
What is post-scarcity?
The Industrial Era Ended, and So Will the Digital Era
Japan Breaks the Basic Laws of Economics
phds mvp
by  phds mvp
Companies Die Like People, Cities Live Like Universes
gs
by  gs
In the 1970s Irish Banks went on strike. Pubs replaced them easily.
RNCIN2012
by  RNCIN2012
What if Taxes were started for churches at least Scientology the World has enough Bad fiction already spread too thick f…
Well
why don't you libertarians ever go off on the medical system? it's the coziest relationship between government and indu…
mr slowbot
Entrepreneurs are redesigning the basic building block of capitalism (Economist)
at tes
by  at tes
How can people deal with natural monopolies?
ben
by  ben
What is monetization?
Han duo
by  Han duo
Does bitcoin have real potential in Greece?
bigg now