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Oh 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 b
by polotics 10y ago
Oh 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.