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Don’t need interest rates when they print money. If you would like to learn more: http://anuparty.org/on-interest-slavery/ http://anuparty.org/on-interest-slav
by lettergram 6y ago
Don’t need interest rates when they print money.
If you would like to learn more: http://anuparty.org/on-interest-slavery/ http://anuparty.org/on-interest-slavery/
Effectively, banks can lend on margin. They put 10% down, you pay back 100% of the loan + some little interest. What does that mean? They can loan out 10x the money they have, and people pay it back in full, 10x their return. Each of those have a small bit of interest and fees. Making them a nice cushy income stream.
The FES can also just create money with a click. This devalues all the other dollars slightly, but then those funds can be shared.
Overall, this isn’t surprising.
- beckingz 6y agoBanks don't just get free money from the government. They have to go almost bankrupt first.
- pas 6y agoAt least for the last few decades the limiting factor for money creation was interest rate, not the fractional reserve requirement. Since there's a very active overnight market for lending excess reserves banks just borrow reserves if they need more to meet the requirements. This is the rate that central banks influence. In the UK the fractional reserve requirement is 0% for example. Lending is entirely risk-weighted ROI limited.