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> In the normal business world it's a very bad sign when your auditor fires you as a customer. My wife is a professional auditor and she said that this would o
by bhouston 9y ago
> In the normal business world it's a very bad sign when your auditor fires you as a customer.
My wife is a professional auditor and she said that this would only happen if the client was pushing for the auditor to certify something that the auditor wasn't comfortable with. Of course she has no direct knowledge of this case. She said it was a really bad sign and she almost never sees this happen.
- aviv 9y agoWe also don't usually see a private company literally print money.
- Maert 9y agoTo be fair, isn't FED a private, non-federal company? :)
- JumpCrisscross 9y ago> isn't FED a private, non-federal company? No. The Federal Reserve was created by Congress in 1913 [1]. Part of its complexity arises from its need to integrate public monetary policy with private capital markets. [1] https://www.federalreserve.gov/faqs/about_14986.htm https://www.federalreserve.gov/faqs/about_14986.htm
- LargeWu 9y agoIt's quasi-governmental, in that it is chartered and overseen by the federal government, but largely executes policy without the influence of the executive or legislative branches.
- spookthesunset 9y ago> but largely executes policy without the influence of the executive or legislative branches. Which, to be clear, is a good thing otherwise politics would start to win over sound economic policy...
- jobigoud 9y agoBanks are private companies and they create money all the time when they make loans.
- apo 9y agoFor those who don't understand or believe this to be true, listen to the bankers themselves: https://www.monetary.org/wp-content/uploads/2016/03/money-creation-in-the-modern-economy.pdf https://www.monetary.org/wp-content/uploads/2016/03/money-cr...
- tootie 9y agoBanks leverage money, they don't create it. Only the Fed creates it. And the Fed and all it's chartered banks are routinely audited.
- LargeWu 9y agoThere's a major difference between fractional reserve banking and printing money. The former is a well-understood and well-regulated practice that actually drives economic activity. The latter is likely what Bitfinex is doing with Tether, is 100% counter to their stated practices, and serves only to artificially drive up the price of other assets.
- whataretensors 9y ago> The former is a well-understood and well-regulated practice that actually drives economic activity There's a lot of money in convincing people this is true but I have my doubts.
- LargeWu 9y agoCare to enumerate your doubts? It's a pretty well established concept in economics.
- wglb 9y agoNo, the money existed and they transfer that money to the person taking out the loan.