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What's more, with the miracle of credit creation by modern banking, only 5% of their money is actually in the bank--the rest is out making more money for the ba
by cpr 11y ago
What's more, with the miracle of credit creation by modern banking, only 5% of their money is actually in the bank--the rest is out making more money for the bank.
It's all a consensual hallucination which works only as long as everyone still has confidence in the system.
- javajosh 11y ago>It's all a consensual hallucination which works only as long as everyone still has confidence in the system. Yes, but delusion is not as irrational as it sounds. http://www.interfluidity.com/v2/2669.html http://www.interfluidity.com/v2/2669.html
- iwwr 11y agoIt's only an illusion when the central bank is unwilling to inject money into the system in the event of a bank run. The central bank has to maintain somewhat of an equivalence between money stored in banks and cash. It depends on if banks become merely "money vaults" or investment/speculative vehicles.