what is something, what is nothing

Itsa Trap

Well-Known Member
Joined
Jan 22, 2020
Messages
159
I dunno. I talked about Sona, Eskom and Magic. And meds!!!

All you go on about is the Central Banks.

I'd say I am at least two items of scope ahead of you in this exchange.


IF YOU DON'T TAKE INTO ACCOUNT THE MEDS.
 

saturnz

Honorary Master
Joined
May 3, 2005
Messages
13,943
without central banks, Eskom wouldn't exist and the government wouldn't be able to engage in deficit spending, meaning they probably wouldn't exist either, so SONA would become irrelevant

your two items are irrelevant in the big picture
 

Prawnapple

Expert Member
Joined
May 18, 2015
Messages
1,995
your focus is rather narrow, central banks create money out of thin air everyday
And then charge people money for using the money created from nothing. The ultimate Ponzi scheme.
I'm fairly sure that the "banks create money out of thin air" is just a meme in the sense of you can't just pump new money into the system, it devalues existing money...
In recent years, some have claimed that banks create money ‘ex nihilo’. This column explains that banks do not create money out of thin air. From an economic viewpoint, commercial banks create private money by transforming an illiquid asset (the borrower’s future ability to repay) into a liquid one (bank deposits); they would quickly be insolvent otherwise. In addition to bank solvency representing a constraint on private money creation, banks require access to liquid reserves in order to be able to engage in money creation.

Also, wrong thread guys.
 
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saturnz

Honorary Master
Joined
May 3, 2005
Messages
13,943
I'm fairly sure that the "banks create money out of thin air" is just a meme in the sense of you can't just pump new money into the system, it devalues existing money...



Also, wrong thread guys.
you are confusing commercial banks with central banks, commercial banks simply amplify this process through fractional reserve banking

and yes, pumping new money into the system does exactly that, it devalues money, do you think the purchasing power of fiat currency (pick any one) has increased over the last 50 years?

In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and also generally controls the printing of the national currency
and moreover it is exactly relevant to this thread because banks believe that they can create something out of nothing
 
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