joewp
Member
- Jan 25, 2013
- 178
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The bank tells you that you can have 100% of your money in those accounts at any time, but yet (on the books) they've loaned out up to 90% of it (or more, actually), actually creating new money.
But you can have 100% of your money in those accounts.
So what problem do you imagine you're fixing?
And any loan actually creates new money, not just loans from time deposits.
Um, you never heard of bank runs? You never heard of bank holidays? No, if every depositor went to Bank A to get their money, Bank A would have to close their doors. So you can't have 100% of your money.
No, when it's a time deposit, "your" money is lent out and you can't have it, so it's not inflationary, No new money is created because 100% of your deposit is lent out.
And in that case, it's not inflationary because it's the "same" money in the account that's being lent out, not bookkeeping created money.
Loans from time deposits are just as inflationary as loans from demand deposits.
In our current system, the banks have the power to inflate assets with liberal loan policy and then deflate the assets with tight loan policy.
You can't have a liberal loan policy funded with CDs? That's funny.
No, not really. Since the money in CDs has to be paid back by the bank within a certain time, loan policies would be stricter to ensure that money is paid back on time.
Why are you defending this corrupt system?