3 ms·
Doesn't matter much when money can be printed by FED (which is owned by banks, not by stste) or just made up out of thin air by banks and financial institutions
by DeathArrow 3y ago
Doesn't matter much when money can be printed by FED (which is owned by banks, not by stste) or just made up out of thin air by banks and financial institutions.
The gold in online games is fabbed the same way.
The only two reasons that makes it hold value is that is the only sanctioned way to exchange goods and services and the players trust it. Once one of the two reasons does not exist, gold will not have any value, just like money in real life.
- benreesman 3y agoThe Federal Reserve system is a quasi-public, quasi-private system. It’s a public/private partnership, which is actually a pretty sane default for how governments should interact with banks. Sloppy, leaky Venn diagrams are a fact of real life. Let’s try to avoid “Jews vote for Likud” or “nine eleven was an inside job” type oversimplification? It’s complicated but for a good set of reasons.
- PeterisP 3y agoAs you note, the Fed lending policies do act as a money source (when increasing supply) and also as a money sink (when decreasing supply). That doesn't invalidate the parent point that taxes have nothing in common with a money sink, since that mechanism (unlike Fed) doesn't affect money supply but rather simply moves it to specific purchases/institutions.