Thread 61145730

So, apparently, monetary expansion doesn't actually mean anything. The only thing that happens is that commercial banks get extra reserves. And those reserves aren't even used to make loans, loans are entirely new money. The only thing these reserves are used for are as a type of buffer. There used to be a time when there was a requirement for banks to have an amount of reserves for them to function, but that was changed and nowadays banks can operate without any reserve requirements. It literally means squat. And yet we have daily QE threads going fucking nuts over something that doesn't even have any repercussions.

The Keynesians and Monetarists are fucking retarded

>>61145730 (OP)
Who made this pepe, I think it is a CIA glownigger astroturf psyop

>>61145733
digits /thread

But banks can only lend when they have healthy balance sheet
Imagine banks like an army that help people by giving money that the people don't have so they can buy houses they can't really afford, well some of these people are spiteful snakes so they bite the hands that feed them and default on their loans, this makes the bank balance sheet toxic
Now comes the hero amongst heroes that is the federal reserve, they suck the toxin or the toxic assets out of the banks balance sheet and replace it with fresh new reserves full of life force energy like young blood for example, imagine a good samaritan sucking venom out if your snake bitten bite hole and give you their blood and life reserves, that's the fed, the fed is the like the sun or jesus or god or something that sacrifices their life energy or qi for your sins that are your delinquencies
And you still call them kikes and satan or whatever, that's why god will punish you with famine and war

>>61145845
This is how i look like btw, a giga chad at the other end of spectrum far away from a chud as you can tell

>>61145845
tldr jewish rabbis suck baby dick nigger

>normies can't even pay minimum interest payment
>fed's feeling wen they need to keep qe to bail out normies rampant consumerism of taco bell financing

>>61145730 (OP)
>banks can create money indefinitely via loans which are digits on a screen
>banks also get free money to cover their asses if loans aren’t repayed
>actually this means nothing at all
Oh

>>61145845
>banks are regulated and always follow the rules plus they're actually the good guys
Kill yourself

>>61145845
>But banks can only lend when they have healthy balance sheet
Already there, you're wrong. Read the OP again; there used to be a point in time where reserves were required for the operations of banks, those requirements have been abandoned. Banks can literally function with 0 reserves. They obviously don't, though, but they could. Loans aren't derived from the reserves they have, the loans are new money. A bank that literally had no money could still lend money, the two things aren't related to eachother.

>>61146020
Hey fuck you too

>>61146031
Learn more

>>61145730 (OP)
>monetary expansion doesn't actually mean anything
It also happens via bank lending/loans, and that shit increases prices over time.

Banks only print money when YOU TAKE THE LOAN!!!

>>61145733
It's just a chud and a pepe fused as one, relax

Why is there even confusion in this thread? Have you retards ever picked up a god damn dictionary in your lives? Do you even know the definition of the word ''reserve''? It means something only to be used in an emergency. This very same concept applies to money, you groids. I can't believe I have to point this out, this board is filled with ESLs posting directly from fucking Mumbai.

>>61146044
>>61145730 (OP)
Also, when they make bad loans, that money from bad loans still enters the system, while bank gets bailed out and keeps pumping out more new money into the system, which means monetary expansion and inflation, even if it's not hyperinflation. Your savings are still getting devalued, even target 2% inflation will half your purchasing power in 36 years.
I think most people just don't care because a lot of them don't have any substantial savings to begin with.