So wait...

>>1604635
Because they don't give a shit about retarded frog posters.

You borrow more. They create more. Repeat

>>1604635
>Banks can technically create unlimited money out of nothing

No they can't. Only the central/national bank can do that.

>>1604635
Why do we even have farms?

Like seriously nigga just print some money and go to the store. Let's abolish all farms and focus our efforts on making better printers.

Go take a macroeconomics 101 course, retard

You want all that easy and affordable cresit for your mortgages, margin accounts, credit cards, car loans etc? Then you're going to have to deal with fractional reserve banking. Blame the damn goldsmiths.

Because how else would they enslave the goyim with debt?

>>1604793
Are they fucking white males?

I heard they were

fractional reserve banking is the greatest scam in the history of mankind

>>1606352
reported to the adl for antisemitic hatespeech.

how are you this far in life and still don't know the answers to such an obvious answer.
i really hope this is b8

>>1604635
Because of fucking reasons faggot, pay your loan

>>1604793

>implying the charge for savings accounts is there to make the bank money and not to keep the riff-raff out

>>1604731
look up fractional reserve banking

>>1604635 >>1604797 >>1606352

Commercial banks do not have unlimited credit. Contrary to popular belief, reserves are not the limiting factor. The Basel capital requirements are the limiting factor, and reserves are largely irrelevant - see http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

But as long as the currency is free floating, the central bank that creates it (the Federal Reserve in America's case) can create unlimited money out of nothing. Unlimited doesn't mean without consequences, and there are circumstances where creating too much money would be too inflationary - indeed as the commercial banks do also create money, there are times when destroying money is a more sensible policy. But when the central bank can create money out of nothing, a country would be crazy to aim for a balanced budget.

>>1604635
>Then why don't they write off my student loans?
Banks don't create "money", they create "credit". Credit is a promise to pay money at a future date. Money is money right now (physical notes/coins and reserves held by private banks at the central bank).

Bank create deposits in your account out of nothing (which are only claims on the bank's reserves held at the central bank. To extinguish a private liability (such as a student loan debt), you need money not credit. You can't pay off debt with credit. Your creditor doesn't want a new IOU, they want money.

The bank could technically pay off the student loan with their reserves and assume a new loan to you but they would only do that if there was an economic incentive to do so (you were going to pay them more than they paid to extinguish the loan). The result being you would just be in more debt.

tl;dr banks create credit, not money and when you pay off a debt you need money.

>>1604635
This is true and is based off the reserve requirements set by central bank. This is OK and planned for, however the banks can also restrict money supply based on their confidence in lending which is what the Fed does not account for.

>>1606986
The reserve requirement is trivial; it does not have any noticeable effect on how much the banks can lend.

To some extent the Fed does account for banks restricting money supply based on their confidence in lending. They do this by adjusting interest rates at the moment. But the lower the interest rates get, the less effective that is. Pushing on a string is the usual metaphor.

>>1607166
Sorry, the above does not quite make sense. The "at the moment" should go after the "But".

>>1607166
I agree with this. Yes the banks have too much control over money supply, oh well that's how it was designed and all these government designs always suck.

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