What's to stop banks creating artificial money electronically or Paypal for that matter?
It's just a number on a screen?!
Banks do create money. Google credit creation.
>>1624133
/thread
>>1623510
Banks give out loans all the time dumbass. They don't have that money they prob only have 10% of it or less. If everyone forecloses on their loans the bank goes out of business. Were you born after 2009? Why are you so stupid?
>>1624133
I know about the central bank and quantitative easing, I'm asking about private banks.
>>1624158
But I thought that the money they didn't have in cash was in assets and investments elsewhere.
Wait a second, you're telling me that a lot of the money doesn't exist at all? As in, it came from no where (I'm asking about private banks here not the central).
What's to stop the head banker from changing the amount of money in his bank account to 1 trillion dollars and being the richest man on earth?
>>1623510
>What's to stop banks creating artificial money electronically
That's exactly how it works. Banks create credit simply by changing numbers on a screen to reflect a deposit in your account and a loan of their balance sheet.
>>1624959
Hyperinflation.
>>1624958
>I know about the central bank and quantitative easing, I'm asking about private banks.
the central bank audits the private banks.
>>1623510
Nothing. Fiat is a meme. Bitcoin is the only truly counterfeit currency.
>>1625047
What are you talking about? Fiat currency is deeply rooted in having the market participants' trust, bitcoin is the same. If there is no trust in any currency then you don't want to be holding it.
>>1624958
>Wait a second, you're telling me that a lot of the money doesn't exist at all? As in, it came from no where (I'm asking about private banks here not the central).
What is debt
I make thousands just hacking into my bitcoin counter app and adding a few zeroes on
it's literally free money
>>1625119
"Fiat" in the context of a bitcoin discussion refers to government issued currency. Technically though, sure, both would be fiat.
Government issued currency, however, can be manipulated at the whim of the government or counterfeited by non-government actors. Bitcoin cannot.
>>1625434
This. It's literally a simple matter of opening up notepadd++, editing some numerical values, and then hacking into the bitcoin database to update your account.
Are there people not doing this?
>>1624998
It's called the money multiplier. For every 10units of currency, banks can lend out 90units.
Electronically, of course
>>1625033
Do you mean that if he did his money would influence the economy so much that his trillion would be worth very little?
It would still be worth more that what you had before becoming a trillionaire, as one additional trillion (that supposedly nobody knows about) wouldn't change the economy that much.
Anyway, what about adding 1 billion to his account?
>>1623510
when you have all this amount of fiat, which isn't even represented by anything physical, you start to question what it really means anymore
does it stand for physical assets?
does it stand for all the work hours that were expanded by whole populations for generations?
does it come from interest?
when you say a billion dollars, it doesn't even mean anything when you sit and think about it.
that said it is still very useful, because that billion-dollar fab intel built to make those tens or hundreds of millions of processors it sells worldwide does require that much money to build, and it has to come from somewhere.
>>1625474
Delete this. We dont want normies finding out
What is fractional reserve banking?
>>1623510
They do that but there are rules about how to do it. Like reserve requirements and whatnot.
If they broke the rules I think the federal reserve would shut them down.
>>1624959
The main thing is the Basel capital requirements. Unlike central banks, commercial banks do not have unlimited credit, which means they won't last long if they don't make a profit.
And the shareholders are also stopping him. If the bank's producing lots of extra money, they want it to go to them!
>>1625441
The term "fiat" refers to the government decree that the currency must be used to pay taxes. That gives it value.
That's totally different to Bitcoin, the value of which is almost entirely speculative.