So apparently Banks can create money out of thin air and then

>>2009337
Because you need real money back. I mean their "thin air creation" is not printing more money but borrowing from the future. But you amerifats cant into logic

File: 1478627761993.png (64KB, 658x901px)

64KB, 658x901px

>>2009340

So
>Banks create money out of thin air
>Customer takes that money as a loan, spends it and pays back that money from his monthly salary with interest
>That customer is paid a salary from his company after it deducts all costs and capex from its revenue
>That company initially took a loan from a bank to set up its business once upon a time
>that loan to the company was originally provided by a bank which created it out of thin air

So wait... you're telling me that technically all the money in the economy is created out of thin air by banks and is recycled between customers, businesses and banks?

File: rly makes u think.png (178KB, 1024x576px) Image search: [Google]

178KB, 1024x576px

>>2009353
pretty much

>>2009353
where did u think money came from?

File: screen shot 2013-11-17 at 5.16.44 pm.jpg (41KB, 622x350px) Image search: [Google]

41KB, 622x350px

>>2009380
Only if you put all your cash under your mattress

>>2009353
That only works as long as banks are able to sell loans.

File: IMG_0636.jpg (18KB, 238x192px) Image search: [Google]

18KB, 238x192px

>>2009484
What if Banks can't sell their loans? Can't they just make new loans to funds themselves?

>>2009495
I don't think selling a loan produces anything of value (or max very little), thus you wouldn't be able to pay back that loan ever. Unless your government likes to bail you out every fucking time. In that case your plan is foolproof.

Banks dont create money "out of thin air", they need a monetary base from a central bank that they can multiply to some degree (regulated by the central bank).

File: macron_nose.jpg (38KB, 534x540px) Image search: [Google]

38KB, 534x540px

>>2009337
Anon, banks don't make money out of thin hair. They make it out of blank paper

File: 30066456753_c30967fea8_c.jpg (165KB, 800x800px) Image search: [Google]

165KB, 800x800px

>>2009340
>Borrowing from the future
Is this like a ponzi? Are we literally living in the largest ponzi ever made by man?

File: Hitler vs the International Banking Cartels.jpg (4MB, 3936x3706px) Image search: [Google]

4MB, 3936x3706px

>>2009572

>made by (((man)))

Since you can't be bothered to Google "Fractional Reserve Banking" I'll explain it to you.

>Bank has money
>Federal Reserve (the Central Bank of the United States) tells them that as long as they keep a certain percentage in reserves, they can loan out the rest of the deposit
>Bank loans money out to individuals
>Individuals spend money
>Business owners who received the money from that transaction put that money back into the bank (in theory)
>Bank again sets aside a percentage of that deposit and loans out the rest
>The cycle continues until the amount returned to the bank dwindles down as the amount reserved continually lowers the amount of new deposits

For this reason, the "money multiplier" can be said to be (1/[Reserve Ratio]). Now, the effect also works in inverse. As the loans are paid back to the bank, money is destroyed at the same rate and following the same ratio.

File: money and currency.jpg (50KB, 1280x720px) Image search: [Google]

50KB, 1280x720px

>>2009839

related

https://www.youtube.com/watch?v=iFDe5kUUyT0

File: 1476418622011.jpg (73KB, 702x1024px) Image search: [Google]

73KB, 702x1024px

you children honestly dont understand money is just a token exchangeable for items you may find VALUE(able) such as land , food, transportation, and work?

stop. making. this. thread.

>>2009886

Of course we know that, silly trip pussy. It's a "medium of exchange".

We're talking about Fiat currency and how it's (((manipulated))) with all manner of fuckery.

>>2009337
because money represents an implicit claim on real wealth.

There is only so many trucks, computers, engineers, water pipes, office buildings, factories etc in a country. There's many people "bidding" to get this. If the interest rate is zero, retards with bad ideas can just bid these resources away from people with good ideas

File: 524805d5b0630c3eb6825dcb2e4bd643a85199510e22e7e6a6c22d6426558662_1.jpg (61KB, 800x613px) Image search: [Google]

61KB, 800x613px

>>2009917

>Of course we know that, silly trip pussy. It's a "medium of exchange".

are you trying to seduce me , ms robinson?

>>2009337
Watch Money Masters.
https://www.youtube.com/watch?v=UrJGlXEs8nI

>>2009990

No, we mostly just want you to fuck off.