Not with fractional reserve banking. Banks lend money to other banks in a shell game, accumulating interest on every transaction. That inflation is hidden to consumers who have no idea the money in their wallets is losing value due to something bankers do among themselves.
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It's easier than running printing presses because all the "money" is on balance sheets. Digital monopoly money, which they can use to transfer wealth from a country to themselves. That money was not printed to represent the growth of real wealth in the economy. It's theft.
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Replying to @The_Petrichory @ee_elephant
when the money gets paid back the inflation reverses bank loans are typically overnight, if at all the "inflation" doesn't exist even in regular fractional reserve banking (I deposit $100), there's no price inflation because when you borrow $70, you can buy goods but I can't
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Replying to @MorlockP @ee_elephant
Except when the central bank comes in and pays off bad debts to avoid defaults and lowers interest artificially. Lend as much as you want (as long as you don't get too greedy and cause a total collapse) and someone else (literally everyone else) pays for any "mistakes" made.
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Replying to @The_Petrichory @ee_elephant
you've moved the goal posts from "fractional reserve banking is bad" to "bailouts are bad" I agree with the latter
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Bailouts are an interesting subject historically. I don't think I agree with everything Hudson says in this interview, but it gives a perspective I hadn't heard before.http://www.unz.com/mhudson/the-delphic-oracle-was-their-davos/ …
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At least in historical banking (before centralization and the advent of "money" mostly held as numbers on balance sheets), when you owed interest it had to be repaid in some commodity (copper, silver, gold, etc.) that was deflationary. Now a CB just types in some numbers. Poof!
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Replying to @The_Petrichory @wraithburn and
And we've all seen the effects. When was the last time you didn't laugh at the pittance they tossed you on a savings account? Most of us are old enough to remember when savings accounts actually earned interest.
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I also remember 20% mortgage rates. It works both ways.
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Historically, that's called usury. Most healthy societies forbid it. At any rate, that has a positive perverse incentive. You get people building things that last instead of shitboxes made of ticky-tacky. If you're going into a lot of debt, you demand quality you can pass on.
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Borrowing money at 15% and lending it at 20% is "usury" ? Please. All this dumb in one thread hurts.
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20% compounded interest on a loan is insane, no?
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