Why can banks create money out of thin air back again?
If the economy is all about trade, and money is merely a tool to quantitize those trades and make them more practical, and if all money comes from work, then why can banks make loans out of thin air?
>>1140634
wouldnt you print money out of thin air too, if wagekuks would let you get away with it?
>>1140638
This. Why do you think all these cryptos have sprung up? Someone realized they can act like central banks and just create currencies as long as they get some dummies to buy in on it. The technical features are just selling points to distract people from their main goal of generating wealth out of thin air.
Banks can't make money out of thin air, only central banks can
>>1140651
central banks are still private BANKS that can print money out of thin air.
As they should because we are cucks
>>1140655
maybe in the US, in other places they are state owned
>As they should because we are cucks
dunno what this has to do with cucking, but I agree that banks should be able to induce money into the markets when needed
>>1140661
In the US they are state owned as well. It's just that there is some checks and balances that don't allow congress to dictate monetary policy. Libertarian retards want to do away with those checks and balances and let congress manipulate the economy through monetary policy as they see fit.
That will surely end up well...
The don't they generate securitized loans and invest with the cash.
You have to separate cash from the series of obligations that underpin the value.
If you light a $100 bill on fire did you destroyed the contractual representation of value.
If you delete a few digits in an account the same thing.
at the end of the day the banks need to make the accounts match according to the guidelines of the law and the tolerance of the people.
To really understand you have to go back a little over 100 years. to where many individual banks roamed the land and all had their own currencies. All made up and all issued according to the managers whims.
But those systems have hard limits and are easily manipulable through concentration of wealth and destruction of currency.
i.e. Freds got all the money. Let's just stop using the old notes and issue new notes cuz fuck fred.
But in the end all the money goes back to the bank any way so they can issue money nearly as they see fit.
>>1140634
>and if all money comes from work
if you borrow, money still comes from work except it's work to be done instead of work already done. any one borrowing is dedicating a future share of their work/salary to the loan
>>1140634
The banks are allowed to by the government. That's the only reason why
The banks are rich so they can do anything they want to do.
"Money" is just a promise of value. Anyone can print money. Usually it's against the law to print things that resemble the sovereign currency of a country but there is nothing stopping you from printing Dan's Dollars or whatever (see cryptoshit). Good luck buying groceries with that though (see cryptoshit). Sovereign currencies are intrinsically valuable because the government will accept them as a means to settle debts and nominally demands that anything sold within its territory must be purchasable with its currency at some level.
>Libertarian retards want to do away with those checks and balances and let congress manipulate the economy through monetary policy as they see fit.
I thought libertarians were all about not letting government do anything related to economics?
>>1142414
As a libertarian myself I believe the general consensus among libertarians is that government is too stupid to manage the money supply. Some probably prefer a gold standard, others are okay with a federal reserve that is merely subject to greater scrutiny. Libertarians in general seem more unified in what they don't like than what they do.
>>1140651
Actually, that's wrong. Thanks to the fractional reserve system, most new money is printed by private banks.
https://en.wikipedia.org/wiki/Fractional-reserve_banking
>His country doesn't determine money supply by eyeballing gdp
