do you anyone here knows how much the bank can produce money in to eonomy? do you guys know how they know what ammount is right ammount and how they calculate this?
if banks need to add money into economy there is exacly numbers what they multyply to get exaccly ammount will be injected in to economy....i just want to see if anyone here knows this?
i know and im waiting you guys to who added bad comments to tell me this i just want to see how many of you here knows anything?
Banks can create money in 2 ways:
1- Money can be produced out of thin air by the central banks. They don't have to have any "real" assets to back their money. They clap their hands and wham $1b is created out of nowhere.
2- Money can also be created by the "normal" banks by creating debt on their customers. Banks are our loan sharks with licenses. The more they loan money, the more money gets injected into the system. If the guy who took the loan doesn't pay the money back, banks can't really do anything other than freezing his bank accounts and seize his assets. If he doesn't own anything and bought physical gold with the borrowed money, now that's the part it gets tricky.
If you remember 2008 and before, how banks were handing out the mortgages to almost anybody even if they had no jobs, if you can't remember, go watch the movie, "the big short", that's how they get fucked in the end and it has no end to it because if the banks can't sell their mortgages they go bankrupt. That's why when nobody takes any loans, they started to give it to everybody and they went bankrupt anyway.
Tldr; It is all a major scam.