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How we/society/constitution stopping government from just create arbitrary number on some server to create money out of the blue ?
by iamgopal 8y ago
How we/society/constitution stopping government from just create arbitrary number on some server to create money out of the blue ?
- firmgently 8y agoBanks do it under fractional reserve banking. "Lord Adair Turner, formerly the UK's chief financial regulator, said "Banks do not, as too many textbooks still suggest, take deposits of existing money from savers and lend it out to borrowers: they create credit and money ex nihilo* – extending a loan to the borrower and simultaneously crediting the borrower’s money account"." [0] * hilarious use of Latin to make 'out of nothing' sound authoritative [0] https://en.wikipedia.org/wiki/Fractional-reserve_banking https://en.wikipedia.org/wiki/Fractional-reserve_banking
- mathieuh 8y agoGovernments already do this, it's called quantitative easing
- Retra 8y agoMoney just isn't as important as what real humans are doing day to day. So governments have no trouble fudging the numbers if it keeps people doing what they want them to. That's not an unreasonable thing to do.