Young girls talks about how the banks are bull shit

Comments

• iamtanmay@wolfballs.com ⁨2⁩ ⁨years⁩ ago

  Based anti-Greta

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• sj_zero@lotide.fbxl.net ⁨2⁩ ⁨years⁩ ago

  Based little girl. And every little bit is true.

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• squashkin@wolfballs.com ⁨2⁩ ⁨years⁩ ago

  I suspect free market banking could still have a lot of similar problems

  yes money or debt is created out of thin air by pressing some computer buttons. This money is eventually covered and gains real value through people exchanging labor for it.

  Let's say I have a $10,000 dollar car and I lend it to you and you crash it. I then claim you owe me $100,000 because it was priceless. That's $90,000 that doesn't actually exist. So how is the "money" or value created to make up this fake new debt? It is through new labor that creates profits (goods) which can then be given to pay for the debt.

  so this is why interest on debt is created. The debts themselves are often based on some real thing. When they print money, this is now a fake thing introduced in to the equation - it gains its value from the already existing labor that is pegged to money (inflation simply dilutes the value of already existing money). Then the amount might be recovered again by people putting more labor in to recover its value (if a dollar goes down to fifty cents in value by inflation, then that dollar might regain its value eventually if new money isn't printed or the value of trading that money for labor catches back up in value to the original value).

  The interest on debt is also fictitious, and like in the car example it creates a fake debt that fprces society to work more and put more new labor in to pay for the debts. So this is how the world can be bankrupt but still have enough good (produced with labor) to pay for everyone's needs.

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  • masterofballs@wolfballs.com ⁨2⁩ ⁨years⁩ ago

    I think the complaint is basically the government shouldn't be borrowing money from a private entity that doesn't have the money and then printing the money to pay it back to a private entity.

    Why do we need the private entity?

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    • squashkin@wolfballs.com ⁨2⁩ ⁨years⁩ ago

      there might be a few ways to resolve the problem. yes, why doesn't the government just issue the money instead of the private entity, perhaps? or why can't there be multiple competing banks that the government certifies? (In practice crypto is kind of filling this second case)

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