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Exactly... not all IOUs are created equal. Any bank that is part of the Federal Reserve System can create US Dollars, the most liquid and trusted form of money
by jkhdigital 6y ago
Exactly... not all IOUs are created equal. Any bank that is part of the Federal Reserve System can create US Dollars, the most liquid and trusted form of money in the world presently.
- jmtulloss 6y agoIt comes with the downside of being highly regulated. I have no idea if the weights and balances are correct, but it makes sense at the surface level that if you are risking the government’s money, you have to do it on their terms.
- ClumsyPilot 6y agoSo heavilly regulates you can hand out mortgages to people who can't afferd them, then turn around and package those loans intonCDOs, and mislead investors as to their liquidity. Then suffer no consequences when global economy crashes.