can someone redpill me on FRB , banks lend out money they dont have thus create money out of thin air and then collect on the interest rates
Are bankers the richest people on earth?
Why is this allowed?
>>1852343
Its corrupt and dirty and preys on the fact that 90% of people are uninformed about money.
>Redpill me on Fractional Reserve Banking
I'm not here to stroke your fucking confirmation bias. Take classes on economics until you work your way through the undergrad curriculum if you want to learn about it because nothing else will suffice.
>>1852343
you've been reading too much libertarian propaganda.
>>1852357
i know that banks support industries by giving out loans to promote economic growth, but recently with Wells Fargo literally stealing money out of peoples accounts and banks loaning money to people whom they know will default is shady business
>>1852359
im not sure if a 4 year economics degree is necessary to understand a single banking system concept
>>1852361
I was looking into "how banks make money" and it struck me as odd on how a $10000 deposit can easily turn into $100000 just from a small chain of people recursively depositing their money into the banks thus creating an infinite well of potential profits for banks
I guess my question is should we trust these banks? Id rather have my money tied up in tangible investments and not a meager interest rate return on my money which their using to make substantially higher profits
I just don't know how to combat such a large conglomerate, i am suffering from bankers wealth envy
>>1852386
if you ever go into a downtown metro or burg, you will notice that the biggest high-rises are always owned by banks with a gint fucking logo on the side.
>>1852343
>Why is this allowed?
state gives priviledge
bankers get priviledges
state win
bank win
you lose
that's why
>>1852438
its true that foreign policy and banks funding are tangled together, most wars are won by financing
>>1852343
>all these fiat shills itt
Central banks are necessary. That's just a fact.
I want to see them burn though with the rise of crypto.
>>1852343
>maximum money multiplier.
a lot of this occurs through the buying and selling of bonds on short term money markets where interest rates are higher and capital is extremely liquid. more prominent financial vehicle post financial crisis.
>>1852343
its ingenious and allows for societal co-operation on a level never before seen.
>>1852386
can you trust them? doesn't matter. financial economy is gonna do it's thing regardless and then it feeds into the real economy of households and firms regardless of whatever theory is being applied.
>>1852386
>im not sure if a 4 year economics degree is necessary to understand a single banking system concept
It is. The entire concept is built on an understanding of a set of micro and macroeconomic concepts that give context to understanding the federal banking system and it's role both internationally and domestically. When you explain that concept to people without the underlying knowledge their perception of the system is easy to manipulate and you get things like the Tea Party and the Libertarians.
A little knowledge is a dangerous thing.
>>1852623
this.
>>1852623
Dont listen to this guy. Let me give you the easy answer. He is an ivory tower elitist try to justify wasting years of his life just to gain a basic understanding of the structure of our economy.
Here's the quick run down. Banks can create more money like this because they know everyone won't come for their money. Everyone agrees to take the fake money because they can use it to make more real money. Take the bank fake money then buy a real asset. Then when the banks crash you don't even need to pay it back.
>>1852623
>you get things like the Tea Party and the Libertarians.
No, you get things like governments who spend trillions into debt with 0% interest rates.
>>1852458 is me and I have a masters in applied econ/econometrics.
Faggots like you should be burned at the cross.
>A little knowledge is a dangerous thing.
Jesus, what a fucking Reddit-tier thing to say. Want me to buy you lebbit go- I mean a 4chan pass? Fucking faggot.
>>1852386
Money is destroyed at a similar rate.
>>1852343
now now goyim. Banking is just too complicated for the common man. Thats why you're confused. Everything is fine