>bank lends you money that doesn't exist
>can't pay it back
>they send baliffs round to take all your stuff to cover the money that the bank just created out of thin air
How is this fair? They're not making a loss if they're not paid because they didn't lend you any actual money
who is that thic dicctwitch
>the money that the bank just created out of thin air
No, it's the money of the people who put their money in the bank
because you bought said things with money that was made out of thin air
A heavily photoshopped obeast.
photoshop
In the US banks are just middle men. Federal reserve creates the money and loans it to the bank at a lower rate than the bank gives to you. I think.
look up fractional reserve banking
It isn't but that's how the system operates.
You can either try to change it or accept it.
banks do not "Create" money
There is a finite amount of money that any bank has loaned out, which is limited by how much money has been put into it.
There is no fractional reserve banking either because they just take out temporary loans from the central bank to meet any "reserve" requirement.
>Bank lends you money to make a purchase
>Takes a charge on its balance sheet and gains a revenue stream
>You don't make a payment, resulting in a loss of that revenue stream but the cost remains
>hurr durr why do they have legal basis to repossess assets to compensate the loss
yeah okay the fuck is it
>that the bank just created out of thin air
Not how it works.
>banks do not "Create" money
They essentially create money.
The central bank puts 1$ into circulation.
Due to fractional reserve banking that dollar becomes 10$ or more depending on what the current reserve requirements are.
>There is no fractional reserve banking either because they just take out temporary loans from the central bank to meet any "reserve" requirement.
No.
While true, interest on personal accounts is created out of thin air.
The bank doesn't pay interest to private accounts, the other accounts don't pay the interest. It is an artificial number that is sent to the fed saying, "this much money was created through interest."
Nice thread. I think that more people should learn of the creation of money. It's all gone wild since 30 years.
But on the other hand, as a mountain jew, I must that banks are nice and dindu nuffin
If you can't afford the loan, don't borrow money from banks, you faggot.
must say
wut?
Money doesn't get created through interest.
it is
investopedia.com
Nah senpai its thin air
They fucking wore out the blur tool on those bitches.
Look it up, brother.
At least in the US, interest paid on let's say a CD or savings account is an artificial number the banks report to the fed.
It's not actually paid by the banks.
I wutted real hard when I learned that too.
this might be a crazy concept for your small brain to comprehend, but the people that CAN pay the money back are probably responsible for pretty much everything you see around you, you know like all the buildings and infrastructure and businesses, etc. Ignorant asshole.
It practically is created out of thin air with extra steps.
This in itself isn't a massive problem, the problem is that the private sector benefits from it, instead of that money being used to fund infrastructure and other public projects that would also distribute the newly created money more evenly to the population.
FOOD FOR THOUGHT FOR EVERYONE ON THIS NICE THEAD
Well of course it's an artificial number.
It's just not the way money is created unless I'm not understanding you correctly.
Money, at least in the US are created in 3 ways as far as I'm aware.
1. Fed.
2. The money created by the Fed is expanded by fractional reserve.
3. US Mint.
The money is created out of thin air but the things you purchase with it aren't. If you didn't purchase anything you'd still have the money / thin air and could pay back.
yes, but if you default on the loan they do lose actual money. interesting, innit?
>instead of that money being used to fund infrastructure and other public projects that would also distribute the newly created money more evenly to the population.
Lets redistribute the wealth away from the private sector and into the public sector, surely that's a good thing.
You sound like a communist.
The money isn't created out of thin air. Quit being a tinfoiler.
>Lets let banks create money and profit from it because reasons
I figured out as much. It's really one big scam designed to keep the goys enslaved. Kind of like the Federal reserves creates money by printing green stuff, then passes it to the government while charging interest, which is repaid by taxpayer's money (through their labour). A subtle form of totalitarianism.
>Private profit is bad. Only wealth shared among the people by the government is good.
do you know what fractional reserve banking is?
Do you know much of anything?
Artificially increasing the money supply decreases the value of normal people's money. Every imaginary dollar they create is stealing from everyone else.
If you don't like it why do you borrow money?
do you even know that money creation is literally a tax on you and your children?
It's just a way of letting the government get the money they need to do things without saying they are taxing you. The results are the same because your buying power continues to drop
You are fucking paying 2-3% in inflation every year to the financial system. The public is literally losing money and it is being transferred to the banks.
Why should the private sector profit from this?
You don't seem to have an argument except for
>if you think that the private sector ever does something wrong you're a communist
it's actually created when you sign the loan form, your signature turns it into a negotiable intrument, or IOU
check out the UK bills of exchange act
name, date, promise, schedule, signature
exactly the same as a promissary note
hey presto, you created the money with your promise to pay, then they give you the money and you have to pay it back
oy vey, doses kikes, huh?
if you doubt me, have you ever got a loan? was there a contract(signed by both parties), or was it just an agreement signed only by you?
do you know what a promissary note, or IOU is?
are you aware that it is a legal negotiable intrument? made valid by your signature?
It really is scary how little the general population knows about it's monetary system.
Money is created out of thin air, People being bankrupt or in severe debt is an inevitable mathematical certainty. The world mathematically can never be debt free/ without there being no money.
it's not borrowing, kikefag, you create it yourself
>small brain
paying back a loan of money you created yourself builds everything? or does it just make kikes rich, at your expense
after all, since you created the money, and then have to pay back the same amount + interest, that's over 100% profit
nice work huh?
You don't like banks? Then go store your money under a mattress faggot.
>was there a contract(signed by both parties), or was it just an agreement signed only by you?
one upside of there being no contract is you can conditionally accept to pay the debt, subject to proof of claim, i.e. the contract that doesn't exist
It's by no means a new thing.
Societal decay can be almost always linked to the privatization of the monetary system.
Ok rabbi
Top fucking kek. How can you be this cucked and economically illiterate?
T H I C C
H
I
C
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It's all about liquidity you dumb fuck.
>Bong education
There will one day be a world without the current financial system, and a world which isn't plagued by Jews.
This hell won't last forever.
It's about the way newly created liquidity is being distributed and who benefits from it.
I like this
>bank lends you money that doesn't exist
So you are saying that it is not real? You can't spend any of it? If that is the case then give it back and don't accept the contract.
If you want the "fake" money then obviously it has some value and isn't fake.
no responses
that's weird
anyway, pull up an image of a UK banknote
what is on it?
hmm,
an amount
a date or on demand(all have on demand)
a promise to pay
a signature
what does that make a banknote, under the bills of exchange act?
that's right class, a promissory note, the same as a loan application form
If they bank takes literally all the risk, there isnt any problem. The problem is the concept of 'too big to fail'. Banks that fail should not be bailed out, deposits however, should be partially gaurenteed by commodities imo.
no, you create the money by filing in a promissary note, that they pretend is an application, this creates the money
then you have to pay it back + interest, when you created it
To further the point, the major trend in all industries right now, and the only way most companies, SP 500 included make any money is through M&A, not anything with substance. This is all the result of having fallen into what's known as a liquidity trap. The problems with the banking system right now are an extension of the issue.
If Japan's any indicator, there is no way out, other than the obvious, which is to increase the tax base drastically. But with fertility as low as it is in most nations, this is unlikely, and immigration does nothing to truely alleviate the issue in the long run.
I don't get it.
Jews: Value education, intelligence, business success, capitalism, and political power. Their "greed is good" philosophy is what builds countries.
Muslims: Filled with hate, anger, and blood lust for those who are not in their exact sect of Islam. Haven't been able to make any significant advancements since the 12th century.
I don't understand why people spend their time hating on jews, when hating on muslims would be much more rational.
>If they bank takes literally all the risk
They don't.
The risks banks take come from lending and financial speculations.
>Banks that fail should not be bailed out
But they are.
The current financial system is inherently broken.
lol what a dumbass
DAMN! That's some nice breeding stock, there. Breeding weight, and tall for ubermensch offspring. That one on the right is like a skeleton.
I do think that governments should stop propping up banks and allowing them to do whatever they want, and I will agree that right now they essentially make a profit without risk because of the government backing.
Without all of this though banking is a legitimate business model that does have its risks. They do create the money in a way, but if not enough people pay them back they will go out of business, assuming a more free market setting.
Leftists don't understand the concept of a contract.
Yes they do, especially right now. Even under normal economic conditions, they still have operating costs associated with business, the ever present potential for a mass wirhdrawal by the general public and regulatory burdens.
These arent normal financial conditions. While banks typically make small returns on bonds and treasuries, right now due to our inflation being so low while interests rates also remain low, they are forced to buy high risk assets such as corporate stocks.
A single massive investment in a high risk asset that fails could lead to a banks implosion and thus the loss of numerous jobs, and were it large enough, financial instability.
The bail outs dont need to happen though, they arent integral to the financial system. They are on economic policy undertaken by state level actors (which banks are not).
>This is all the result of having fallen into what's known as a liquidity trap.
yes, well maybe if you explained what you meant we could discuss it
>Their "greed is good" philosophy is what builds countries.
we had countries before jews and their usury, user
Wow gee it's not like governments get overthrown to enforce the honoring of promissory notes.
The whole idea of consent to the social contract is a nice thought, but it's a weirdly utopian libertarian concept and in real life people in power will always get what they want.
you wish
Yeah just go to live off to forest then and hunt your own food etc.
you seem to have missed what I am saying
YOU create the money when you sign the loan application, it becomes a promissary note the instant that you sign it, htey hten put that money into yur account
YOU created it! how is there any risk for them?
and often you have to pledge collateral
so YOU creat the money that is then put in your account, and if you can't pay back the money you created(withinterst) they get to take your stuff
pretty clever
Assets become sticky as the result of the traditional inverse relationship between inflation and interest rates has stopped. Currently interest rates are low AND inflation is low. Disastrous for financing of any sort.
>These arent normal financial conditions. While banks typically make small returns on bonds and treasuries, right now due to our inflation being so low while interests rates also remain low, they are forced to buy high risk assets such as corporate stocks.
There you go you said it yourself.
This is where their risk is, in their investments.
>right now due to our inflation being so low
why is there any inflation?
when did inflation start?
You are honestly so far from understanding the financial system, it's just baffling. Try thomas sowell's basic economics - it was the first that I ever read waaaay back in middle school and you can get it for free online.
No, it's not you fucking moron! Look it up before you post your fucking idiotic response!
Because you were sold the American dream. And, furthermore, FUCK you for thinking you could buy things with your money like a roof over your head, right?!
>forced
>high risk
Banks control the stock market top to bottom. They encourage people to invest their money, often on margin. Most of that investment is done through banks, or their related companies, which make the specific investment decisions. Most stock trading is also insider trading, so they know exactly what is going to happen.
The entire stock market is a giant ponzi scheme run by the banks. That's all it is, all it ever was, and all it ever could be. This whole thing is manufactured by the banks, even this supposed "crisis" they're in. It's all built on lies.
Spread the word.
can you describe a promissory note to me?
do you agree that such things exist?
are they money?
Yes, and? If they just sit with the monry and continue to accrue administrative costs, they cease to exist and massive financial collapse happens as the result of like 75% of securities activity dries up.
Inflation has always existed, even on the gold standard. It is the result of something becoming more common.
In the most basic terms it is simply the more of something there is, the less it is worth. Though there are a million footnotes that could ammend that statement to give you an accurate picture, that is the basis of it.
Your student loans and your mortgage are just a fucking pyramid scheme to keep the pensions, 401ks, etc going for the generation which came before, and whose leaders squandered all the wealth by giving their friends on Wall Street government handouts.
here is the legislation I am basing my argument on
en.wikipedia.org
The Bills of Exchange Act 1882 is a United Kingdom Act of Parliament concerning bills of exchange. The Act was drafted by Sir Mackenzie Chalmers, who later drafted the Sale of Goods Act 1893 and the Marine Insurance Act 1906.
Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit.
The formal legal definition of a bill of exchange is as follows:
An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum in money to order or to bearer.
Expressing this in less formal language, it is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer.
Nope, your a fucking moron who is just getting scammed, and you don't want to admit it it......what a fucking plebe!
uggggghhhhh ticcccc
This.
(((financial))) capitalism
Ever notice people built entire cities before the jews convinced they needed a loan to do it?
Really makes me think
>They don't.
>The risks banks take come from lending and financial speculations.
Fractional reserve directly benefits the banks and increases the inflation paid by the citizens.
would you rather two of the big one or one of the small one
Yes, do you understand anything or do you just want to believe everything is OK and go back to your shitty life of being a wage cuck?
does this act of legislation exist?
does it mean what I think it does?
They are money so long as they have percieved value. Nearly every currency is promissory, ones that arent fully so are only partially back by commidies. All cou countries have emergency reservese of gols and the like just in case, but's just a drop in the bucket. Conspiracies even exist that Knox and London are empty - a farce, but I digress.
I dont think we can sustain our current system of currency backed by nothing more than the regulatory assurance of value in a world of declining birth rates, but the criticism of the system seen in this thread have just been plain uneducated.
Ideally, those investments would come from real savings, not from the fraud that is fractional reserve banking.
> Out of thin air
No, the bank uses the money people put in the bank to offer loans and the make a profit from the interest. Do you not know how banks work? Every home loan a bank pushes is funded by it's customers.
youtube.com
LITERALLY THIS
its not fair, its literally a pyramid scheme.
but how can we fight it? they control everything and we have to get up in the morning to work..
we're all just slaves
How stupid are you?
Search youtube for "Money is Debt"
omg you're fucking stupid, educate yourself before spreading miss-information you retard.