Forcing the banks to create loans will bring more debt into to economy. More debt equals more fiat, because our money is based on debt.
This will mean inflation in the short term, and more poor people in the long term (someone will need to pay their debts sometime).
That's the whole thing, all this debt based fiat currency is giving us the illusion of wealth, while in reality every dollar you own is backed by the debt of someone else. Or maybe even backed by your own debt.
This will mean inflation in the short term, and more poor people in the long term (someone will need to pay their debts sometime).
That's the whole thing, all this debt based fiat currency is giving us the illusion of wealth, while in reality every dollar you own is backed by the debt of someone else. Or maybe even backed by your own debt.
If people can successfully invest the money they borrow and get a return greater then the interest rate they pay then they will profit and the economy will flourish. If they cannot make more money then what they pay in interest then their standard of living will decrease.
