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I would recommend you read one of Paul Krugman's book to understand how banking and the economy work.

• fredsir 9y ago
  Could you elaborate what specifically is wrong with what transverse is claiming?
  • maxerickson 9y ago
    The part about not backing deposits with silver and gold being fraud is pretty wrong. Even in Ye Olden Daze, banks would send deposits of things like gold and silver right back out the door as loans.
  • sjbase 9y ago
    Well, the very first assertion "Banks make currency" is not accurate in the US (the context of the article). Currency is "made" by a combination of the US Treasury and policy set by the federal reserve. The fed is a bank of sorts, but in no sense is a bank like JPMC creating currency.
    • transverse 9y ago
      https://en.wikipedia.org/wiki/File:Fractional_reserve_lending_varyingrates_100base.jpg https://en.wikipedia.org/wiki/File:Fractional_reserve_lendin... shows how banks effectively expand currency. It's linked in https://en.wikipedia.org/wiki/Money_multiplier https://en.wikipedia.org/wiki/Money_multiplier
• deleted 9y ago
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