By J.R. MacLeod
Banking systems around the world have huge effects on our lives, yet few people understand how banks work.
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32 sats \ 1 reply \ @BTCLNAT 19 Sep
It's not entirely clear to me, because I'm not an economist, but from everything I've read I understood the following:
1 The Central Bank CREATES MONEY OUT OF NOTHING
2 It uses that money to lend, pay, buy and do whatever it wants with companies, governments and other banks
3 It puts everyone into debt, creates MORE MONEY OUT OF NOTHING and continues doing whatever it wants
Is that so?
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0 sats \ 0 replies \ @Undisciplined OP 19 Sep
Basically, some of the specific mechanisms may differ by bank, but it's the same scam in every case.
The check on runaway money creation is just how politically unpopular inflation is. Otherwise, they could just abolish all taxes and purely pay with freshly printed money.
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24 sats \ 0 replies \ @023ad18700 19 Sep
They basically charge us to hold our money and they invest with our money as capital and since they make returns off our money they pay our accounts interest in return
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