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That's something to be worried about. But I'm more worried about banks having the power to issue unlimited currency which is a default in a cashless society
by atlih 10y ago
That's something to be worried about. But I'm more worried about banks having the power to issue unlimited currency which is a default in a cashless society
- mrec 10y agoWell, cash hasn't exactly stopped them either. I don't know what the figures are elsewhere, but in the UK around 97% of money is created by private banks making loans, not by the central bank printing notes.
- deleted 10y ago[deleted]
- polotics 10y agoOh please learn some economics. Bank loans are not new money. Some TBTF banks have a problem of under-capitalization and may be bailed out with new money, but banks are government's strawmen on this racket.
- atlih 10y agoBank loans are new money according to The Bank of England http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf http://www.bankofengland.co.uk/publications/Documents/quarte... The reason banks get into trouble is because they cannot meet even their tiniest obligations in actual currency. In a cashless society this will not be a problem, just unlimited digital money creation.