Fiat currency and fractional reserve banking

[achilles28]

Quote from Haroki:



Where I would continue to disagree with others is that the money to be loaned is created out of thin air. Banks do the pyramid or ponzi scheme, granted. Or rather it just looks like it. They take assets/promises to repay loans and loan again against that. It may be a little emotionally alarming when you think about that, but really, what is the difference between loaning out money against deposits or assets? .

Then try it yourself.

Open up shop, make dollars out of nothing in exchange for 'assets' and see how far you get.

Thats the difference. No one is allowed to legally counterfeit except the banks.

Even Neoclassical textbooks are out of step with 'your thinking'.

You're in denial.

 

[Matt24SPFL]

Quote from achilles28:

Then try it yourself.

Open up shop, make dollars out of nothing in exchange for 'assets' and see how far you get.

Thats the difference. No one is allowed to legally counterfeit except the banks.

Even Neoclassical textbooks are out of step with 'your thinking'.

You're in denial.

Exactly.