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Banks like JP Morgan don't have the power to put more money into circulation, so you're wrong.
by brockwhittaker 9y ago
Banks like JP Morgan don't have the power to put more money into circulation, so you're wrong.
- acty1 9y agoYou're incorrect because you are imprecise. Banks can AND do create M2, M3, etc. When they give you a loan, the money got created according to fractional reserve requirements. If you mean they cannot create currency, then you would be correct, but you said money and did not specify if you meant M0, M1, M2, etc. Actually the Federal Reserve, which is a private bank, has complete control over currency too. The currency and money supply of the USA has been outsourced to a private unelected entity.
- sp527 9y agoI'm not entirely sure if this is a joke or not. One of the fundamental functions of a bank is to increase the money supply by creating debt.
- lotsoflumens 9y agoYou should review the concept of "fractional reserve banking".