The banking industry relies on continuously increasing asset values, most notably housing prices.
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What happens when housing prices fall? Loans stop getting paid back, and banks take losses. Lending grinds to a halt, and crashes happen.
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Note that these asset value crashes are related to the decline in loans. Increasing the supply of loans increases the money supply & prices
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Perhaps our economy shouldn't be so reliant on lending and continuously increasing prices, but nevertheless this is what we have to deal w/
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Housing prices, meanwhile, are highly related to changes in population. So, naturally, the bankers and other elites are
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very interested in population growth, one way or another. More immigrants = more demand for housing = higher prices = higher banking profits
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Immigration control and deportation are direct threats to this income stream. The banking system has so much influence
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on the economy that nearly everyone is afraid of the resulting crashes--not just the banks. However, deportations do not necessarily mean
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nominally declining housing prices if the Fed steps in and generates enough inflation through printing, helicopter drops of cash, etc.
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With enough inflation, the Fed could prevent the banking system from crashing the economy by having housing prices
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increase nominally while declining in real terms.
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