3 ms·
1. There are no longer any reserve requirements in the US, UK, Canada, and other places. EU reserve requirements are 1%. Banks are instead constrained by capita
by andrepd 4y ago
1. There are no longer any reserve requirements in the US, UK, Canada, and other places. EU reserve requirements are 1%. Banks are instead constrained by capital requirements nowadays.
2. What value or service does this middleman provide? Why can't businesses and families and individuals get money by crediting themselves the money and creating a matching liability? This is what banks do.
- DarkmSparks 4y ago1. Because they are all bankrupt/technically insolvent and trying to inflate and fight their way out of their debts to Russia, India and China. 2. Mostly pensions and pension funds - saving work now for payments later when you can't work - see 1. 2a. Additionally funding large projects which no one individual/institution can afford no matter how wealthy, such as building huge infrastructure projects like silk road and other national infrastructure. See 1.