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Topic: Bank create money out of thin air faster than you! - page 2. (Read 231 times)

legendary
Activity: 2506
Merit: 3645
Buy/Sell crypto at BestChange
Money, "paper money", is a representation of how well your government is able to fulfill its obligations that every currency you print has an equal value in terms of GDP and has a guarantee.
Many countries flounder in monetary policy, so considering the protective money of these countries on the basis that they are assets is a matter of value.

As for saving, as you enter the mouse race, you must develop your skills in order to save more money. Inflation is difficult to balance, but does not change its essence.
newbie
Activity: 17
Merit: 0
It's the government of a country which determines whether to make money out of thin air or not and to control the money flow inside the country. Banks will be filled with money when there's more money on people's hands and that is governed by the economic policy of the government. So, basically in my opinion, banks do not make money out of thin air, but the governments do...
legendary
Activity: 3542
Merit: 1352
Cashback 15%
Banks loan out the money that they got from deposits and charge interests. That's how most of them make money. They do not create money out of thin air, but they do create money by using the trust people have given them, which is kinda smart (and nefarious, lol) if you ask me.

It is actually the governments who can create money out of thin air and faster than Usain Bolt. Certain financial policies aid them in doing such, though of course certain conditions should be met before they start printing out money. We all know what happens if a country decides to overprint its money, take for example Venezuela and Zimbabwe. Their currencies are affected by hyperinflation due to continuous printing of money which turned out to be really detrimental to their economic growth.

I get your sentiment but it is what it is.
sr. member
Activity: 1313
Merit: 278
Even with a large number of savings, they can easily depreciate in the event of a collapse of the bank and the financial system. As you know, this happens repeatedly with a certain degree of cyclicality.
Therefore, it is quite dangerous to keep money in assets that are not secured by anything. In addition, banks can print money as much as they want, thereby depreciating these pieces of paper.
full member
Activity: 1554
Merit: 116
0xe25ce19226C3CE65204570dB8D6c6DB1E9Df74AC
This doesn't work like that at all ,
*Most of the money in our economy is created by banks, in the form of bank deposits – the numbers that appear in your account. Banks create new money whenever they make loans. ... Banks can create money through the accounting they use when they make loans.*
  - taken from Google
Now when we think about it , if a person deposits 100$ in the bank , the banks loan out that 100$ to someone else , they are not creating money out of thin air , everything is systematic and going in hand to hand.

*Therefore it's only the government that can print more money , but at the risk of decreasing the relative price of their own currency which in turn affects the market drastically.

*If they had unlimited supply no one would be poor.

You may know how much US is printing money, but do you know how much China is printing money? They may have printing twice the amount, that alone will dictate how your economy work in your country. Don’t forget Japan and Korea too, also the European Union and U.K.
hero member
Activity: 2310
Merit: 757
Bitcoin = Financial freedom

*Therefore it's only the government that can print more money , but at the risk of decreasing the relative price of their own currency which in turn affects the market drastically.

AFAIK,only banks print their local currency but under the laws given by the respective government,OP is right but not entirely,Banks are creating money out of thin air but gradually so purchasing power decreases every year by negligible amount if we calculate them for a decade it will turns out to be big.
*If they had unlimited supply no one would be poor.

If there is unlimited supply then it doesn't have any value. Cheesy
hero member
Activity: 1862
Merit: 830
This doesn't work like that at all ,
*Most of the money in our economy is created by banks, in the form of bank deposits – the numbers that appear in your account. Banks create new money whenever they make loans. ... Banks can create money through the accounting they use when they make loans.*
  - taken from Google
Now when we think about it , if a person deposits 100$ in the bank , the banks loan out that 100$ to someone else , they are not creating money out of thin air , everything is systematic and going in hand to hand.

*Therefore it's only the government that can print more money , but at the risk of decreasing the relative price of their own currency which in turn affects the market drastically.

*If they had unlimited supply no one would be poor.
full member
Activity: 1554
Merit: 116
0xe25ce19226C3CE65204570dB8D6c6DB1E9Df74AC
Bank continue to create money out of thin air at the comfort of their sweet aircond/clean air/Corona-free room white collar jobs while the rest of us need to fight to dead to make some money for living, (Uber, YouTube, MMO, Crypto trading, mining, scamming gullible investor, flipping junk on eBay, Webcam, hacking govt site) we risk our life working everyday, for a pay that cannot compete with the speed banker press the “print money” button at their basement, and print money is risk-free too.

The bank can print $10 out of $1, it translate to bank purchasing power of $10 while your purchasing power is $1, $100 while your is $10, $1000 while your is $100.

Bank print the money to buy Big Mac everyday, so the bank willing to pay $10 for each Big Mac, thus price fixing the Big Mac to $10, you all also need to pay $10 for Big Mac. When bank decide to pay $100 for Big Mac, all of you need to pay $100 too.

In the long run you can’t afford the same Big Mac, your purchasing power is stagnant at $1 for many years, while you need to keep paying $10 for Big Mac, what can you do? Stop eating Big Mac? Change diet to broccoli instead?

Of course in the long run bank will continue to buy Big Mac at inflated price, $10, $100, $1000, bank have unlimited money.

Summary, can you have saving today? How can you have any saving at all? Personally crypto is my only saving, my cash flow have been -ve since forever, more money out of pocket than more money go in, the ratio is greatly skewed toward expense, with each passing year the ratio gain more skewedness, 99% expense and 1% income, it’s not healthy.
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