How is fractional reserve legal

how is fractional reserve legal

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because they said it is

Shut your goy hole

Wait until you learn about zero reserve lending.

obfuscation through complexity

They wanted to create a leveraged house of cards to prop up the real estate market and give people access to money they haven't earned to fund their big businesses with loans.

After that they got rid of the gold standard. Now they can print infinite money regardless of how much money is in the bank thus making bank runs impossible. They can print away any debt the bank has. The printed money goes into real estate and stocks.

It's genius except it keeps asset prices going up forever while wages stay stagnant. Everyone is leveraged up to their ears, some people get to leverage more than others because of nepotism. If you don't own assets this system grinds you to dust.

What’s the issue? This looks revolutionary, now everyone can have good wages

Have you seen what rabbis do after circumcising a child? How is that legal?

This is the old way. There's no more reserve. They just make money.

cool it with the antisemitism bud

Basically, it’s a stupid Jew system and it sucks just like America.

It wasn't directly tied to real estate, it's just that cheap debt is a significant driver for economic growth (easier access to money makes it easier to start a business, or renovate real estate, or go to college), and cheap debt is easier to offer when you're the reserve currency of the world and most debts are paid off in USD that you can just print more of. Virtually every technological advancement of the past 30 years was powered through debt.
That's not to say that it's a perfect system, but it's absolutely better on the whole than the gold standard or any other system tied to physical commodities that are slow and cumbersome and more of a liability than a boon for economic development.

But it's all fake economic growth, someone has to pay for it and that someone is the youth

Because civilized populations who can refrain from bank runs can essentially “time share” wealth this way and have greater purchase power and better hospitals.
In OP’s picrel, with a 10% reserve requirement, the leverage on the initial deposit would eventually level out at 10x, so $10,000 of M2 money for $1,000 of M1 money deposited.
For a 1% reserve requirement there would be 100x leverage, and for zero reserve requirement, as we have now since the pandemic, there’s theoretically infinite leverage. Luckily the banks don’t want to lend out all their cash, as they can get risk free interest by sitting on some of it.

It's okay at least the boomers got to have fun for a few decades
Now the rest of the world gets to suffer with no end in sight

> But it's all fake economic growth
idk, the dominance of Google, Apple, Tesla, Amazon, Microsoft, and other post-FRB companies that dictate the way 90% of us experience the world seems like pretty real growth to me.
> someone has to pay for it and that someone is the youth
In most cases, inflation offsets the interest from these loans on a systematic level (not at an individual level, but most of these loans are for individuals but for businesses and intrabank). America's soft and hard power means there is leverage to change the terms of those agreements at pretty much any time. Further, it's a pretty foundational idea that you can create value from "nothing". Data has value despite being ephemeral, new inventions have more value than old inventions by improving what previously existed, breakthroughs in science allow for exponential growth in other areas of life. The economy isn't a zero-sum game, and never has been. You're caught up in "small number in, big number out" when that's literally the goal of all economies.

israel has no right to exist

Because otherwise politicans would not be able to buy votes with MMT money. We should start a bank that works with islamic banking principles with silver/gold reserves. MMT is a scam.

remove the word islamic and im on board

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Fish gotta swim, birds gotta fly, got gotta goyim