Banks create money when issuing a loan. This is how fractional reserve banking works. They lend money they don't have (most of). This is institutionalized fraud, and it's been standard operating procedure for centuries.

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conmod278 7 hours ago | parent | next [-]

But the fraction to be kept in reserve has been zero for 4-5 years.

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neilwilson 7 hours ago | parent [-]

Almost like the concept is complete bunkum.

It’s been zero in the UK for hundreds of years.

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kennywinker 6 hours ago | parent [-]

that.. doesn't make it better

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jurgenburgen 5 hours ago | parent [-]

It was replaced by other mechanisms. It’s not literally zero any kind of reserves.

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kennywinker 4 hours ago | parent [-]

I’m not worried about the lack of reserve, i’m worried about the money shell game where private companies can drive inflation or deflation whichever serves their profit margins best.

The 2008 global financial crisis was a result of this, so not a made up worry.

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JumpCrisscross an hour ago | parent | next [-]

> The 2008 global financial crisis was a result of this, so not a made up worry

The GFC would not have been prevented by a reserve requirement. The problem didn't originate in the banking system, and transmission to the banking and payment systems wasn't reliant on leverage per se.

	▲	kennywinker 44 minutes ago \| parent [-]
		> The GFC would not have been prevented by a reserve requirement. Who said anything about that? > The problem didn't originate in the banking system I guess i consider mortgage lending part of the banking system, but no matter - my point is it was created by financial institutions lending in ways that created money, helped their bottom line in the short term, and were unaccountable. That’s why i’m worried about how much of the US economy is created by private companies creating money out of thin air by loaning in loops.

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an hour ago | parent | prev [-]

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7 hours ago | parent | prev [-]

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