lol, Esay, if you want to be publicly lectured on basics of economy - let it be so.
banking system's function is to redistribute capital to where it is needed and the most effective.
it is done via profit. if a business creates profit it has access to credit, if it is ineffective it is cut from credit and goes bankrupt.
in present USA inflation is higher than interest rate (and my reply above was referring to a specific example of fixed mortgage which is lower than inflation, and it makes banks to lose money) .
it means that banks lose capital on every credit given to business, to everybody actually.
it means not only that banking system has no sourse of income except deeply flawed QE, distribution of printed money which is not backed with goods and what inevitably leads to absolutely lethal hyperinflation,
but it also means that all enterprises, both effective and ineffective get credit and survive.
banking system does not function properly or at all, capitalism is dead in the US, as much as dead is US economy, it is on constant life support of QE
also, due to this absence of purifying bankruptcies, when ineffective enerprises survive because they easily get credit and pay smaller % than even inflation is - disproportions in economy grow.
ineffective enerprises consume resourses without creating added value and share of ineffective enterprises constantly grow
this is the reason why Chinese export to the US permanently grows, because US economy is inefficient and is instantly a bankrupt as soon as QE is stopped and interest rate grows to the level it belongs with inflation of 6,8% - to 9-10% approximately.
US is a bankrupt, the EU is not much in better condition
you chose wrong horse, Esay, all your hopes and Eurodreams are in vain...
Ukrainians are idiots..