What Could Go Wrong?
(media.greatawakening.win)
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Abolish the fed and fractional reserve banking.
It certainly makes a kind of logical sense. The notion of a lender of last resort that always has money to lend is kind of absurd, and unjust. It means there is an entity with the power to redistribute all the money people have earned and saved. If they inflate to infinity all our savings become worthless.
On the other hand, this financial fiction has made possible an undeniable explosion of material wealth. We've got cities full of skyscrapers and huge power plants and factories because of easily available credit from fractional reserve lending. Without that credit much of modern society that we take for granted would not be possible.
You speak as if magic dollar bills can be planted in the ground to grow skyscrapers. No, franctional reserve lending does nothing to increase material wealth, but only to increase the percieved wealth of the lender.
So how do you build a billion dollar factory without credit? And where do you get the credit if there's no magic fiction money?
How do you pay for something with something that you do not have?
Do you not understand that fractional reserve lending is lending more than you have? As in, I have $10, I loan $100, charge say 8% interest, then you have to pay me $108. How does that increase material wealth? How does that increase the yield of crops? How does that increase the materials that can be mined?
You don't need to LIE about what you have to make that "billion dollar factory". If you think that lying about how much wealth actually existed by fabricating "magic fiction money" was the only way to make that "billion dollar" factory that got made then you are actually mistaken about it costing a "billion dollars". The materials existed, workers worked to provide them, the workers were fed, clothed, housed etc. and all of that wasn't caused by a printing press.
To help you understand further, remember that currency represents wealth. So for example if the population suddenly exploded and we had more people making more things of value, THAT is when more currency should be created. Currency facilitates trade of wealth.
If you're trying to trade wealth that doesn't exist then you're committing fraud. Inflation is creating currency that represents nothing. Fractional reserve lending creates that inflation by making you pay the lender money that the lender never earned.
Do you see why this is dangerous? Why it is only productive for the lender and detrimental to the borrower? If not then I apologize I couldn't make it more clear, I tried to type this a little at a time while at work.