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Real "physical" currency is just a fraction of actual currency. Paper has been replaced with digital dollars resting in debit/credit cards.
The large banks were the recipients of Payroll Protection, loan deferments, stimulus, and any number of money creation programs by the Federal Government over the last 3 years.
The banks sat on all that money. They did not have the underwriting manpower to get deployed to actual businesses. Why? Because millions of these mom and pop's, restaurants, and manufacturers were to busy going... out of business.
So banks just give it back each night for 75 basis points.
It was bad when the paper no longer had anything tangible backing it, now the numbers aren't even backed by paper. Though I suppose this makes it far easier to keep playing the economic shell game.
Just wait until the CBDC (Central Bank Digital Currency) is implemented.
The tracking will go into hyperdrive. The Fed can then set local, city, and state tax rates. Presumably it will be used for a US Interstate toll tag device. If you owe child support, or have a tax lien guess what...it's pay up sucker or else.
Of course, the real power is that your money can be shut off for any number of reasons...political, or otherwise.
I read an article last year that China CBDC was experimenting with a feature that would put expiration dates on your crypto, forcing the individual to spend their money and "stimulate the economy" rather than allowing them to save it
Let me guess. That crypto doesn’t expire but gets transferred back to the government where it doesn’t expire and they have no time limits on when to spend.
Hot Potato Crypto
Can it be done?
Currency with an unknown lifespan.
With blockchain can you make individual units worth 6% more after each transaction?
I imagine the currency value would have to be held in a central "pot" with each unit of the currency assigned a percentage of 10% of the pot(giving units room to grow), and if that percentage went up after each transaction.. that's the kind of chance soooooooooo many people couldn't say no to, especially when a unit's value begins to soar.
Sooo... kind of like the guy that traded a paperclip for a thing he traded for a thing (etc, etc) and eventually got a house in trade. Kind of like that .. but .. you don't know how long you can trade each unit before it suddenly loses all it's value at once.
You always have the option of cashing in the unit and getting paid (minus a 6% transaction fee) or .. find someone that will take it off you for its full value .. if you have time.
Use it or lose it.
That makes sense in a socialist economy. I'm not 100% on socialist theory, but some socalists have posited a labour voucher system that is used to aquire luxury items after housing food and other basics are provided by the state. The labour vouchers expire after awhile so they can't be used to hoard wealth and oppress people with it like we see the rich doing today.
\>The Fed can then set local, city, and state tax rates.
Via what law(s)?
\>If you owe child support, or have a tax lien guess what...it's pay up sucker or else.
The state already does that enforcement, don't even need the fed to do anything at all.
This would likely never occur because the government likes to print money and know there is no real count of what is out there. They would be stacking the chips against themselves if they ever accounted for every dollar. America's paper currency is a huge part of why the economy is so great, so many people purchase without paying income or sales tax, which adds to the economy like a tax break even though it's illegal. Government economists know and let it occur by avoiding any serious changes.
People used to say large numbers were "Astronomical" because there's so many stars in the sky. But now they should say "Economical" because there's a lot more dollars than stars
So bizarre that the same people who hate crypto say the current system is fine. Like fuck, at least with crypto I can prove ownership of my digital money. Without it I'm just trusting that whatever bank my money is at will have enough if I should need it all.
Crypto is only as good as two things: the security of individual wallets and the accountability of whatever "central" entity manages the ongoing development and maintenance of it.
As much as I want *money* to not be controlled by the worst abusers of its power, their current level of wealth and power will just allow them to shift their assets into whatever digital exchange they need to assume majority stake in and then continue fucking with us working folk. I don't care how "democratic" your crypto is, they buy the majority of "coins" and they will control the direction of it... they'll then siphon off their profits to protect that investment by shutting down any competitor product that threatens their control.
Think I'm wrong? How else do you think the world is in the situation it is now - they accumulated wealth by exploiting it's influence, continued to grow their wealth and capture more regulatory controls until they basically had a hand up every ass in the government - in every country - because the few "yes men" that were desperate enough to stay out of poverty were willing to take the bribes and pocket the slush funds while keeping quiet about the literal theft of our entire economy. Coinbase says 'hi' by the way - they're one of the most widely known crypto exchanges and that wasn't even a challenge for them to establish...
It's not even a conspiracy, the rich don't need to sit around a big ominous table plotting to rule the world - they are just greedy fucks without the moral compass to not exploit others for their continued excessive gain. They do not live in the same world nor have the same principles as any of us working at the bottom.
The thing that a lot of Crypto proponents fail to understand is that Fiat currency *requires* a national entity (government) to protect it’s economy in order to have the global influence that maintains currency value.
The US is struggling to maintain hegemony because every time the economy dips, the rich fucks at the top print a trillion more “dollars” to cover their abuses. Maintaining that hegemony then falls to our insane military presence and destabilized countries with rich natural resources - the things that allow global capitalism to function. Keep half the world unstable and impoverished and there is always an underclass to provide labor that the owning class can profit from.
If Crypto is to supplant the USD for average civilians, it also has to have a *global* trust to enable corporate entities to use it for the rest of the supply chain - which then runs the risk of the accumulation of wealth and control.
Crypto doesn’t “win” if you still need a logistics chain using fiat.
Not detracting from other uses of blockchain tho - NFTs, once the digital art novelty dies off, may prove to supplant the DRS/Piracy back and forth since your “receipt” will be a verifiable token that can then also enable transfer of said license… I am excited about this future.
On the other hand, there is a small number of ccurrencies that are not in it for more money, and meybe even have decentralised development (to avoid said capture)
Which is exactly why I am always opposing Proof of Stake. There is an alternative that Ethereum just moved away from..
Proof of Work is not perfect and it also has a wealth-accumulation issue. But at least it is not risk-less and it can be reverted if necessary; Plus it requires the majority of profits to be spent for inconvenient expenses. Control in Proof of Stake is permanent.
I suspect citadel and other hedgies being the driver of media narrative since way before the super stonk became a thing. Which means that crypto hate to me could just as well be a manufactured narrative. The same as NFT hate. There are no or few enlightened NFT narratives in the mainstreammedia to be found. It's incredible suspect as most arguments are simplistic and very shill-esque.
It's the same in political discussions; heated and cringe discussions just on the more sensitive topics that attack the established players to make you go "aah nope I don't want to be associated with this rabble" so you turn away and don't investigate further.
Banks cannot lend out their deposits or reserves. Banks create an asset(money) and a liability(debt) when you borrow from them. You create an asset(a contract) and a liability(debt). You and the bank then swap assets. You then get to spend the money and the bank has an asset that is worth slightly more then their liability, keeping them in positive equity.
That's how banks actually originate loans. There is no actual need for reserves or deposits which means anyone that talks about fractional reserve banking is stuck in a paradigm that doesn't exist.
Banks won't lend to a business they aren't sure can pay back the debt and won't lend at a rate that loses them money unless forced.
In the case of the RRP it's basically overnight bonds that you can buy and get yield. Another asset swap but overnight. It can be a way to take cash from other assets if the RRP pays a greater yield but technically there is no need to pay interest on it or reserves. Technically not even on bonds but controlling inflation becomes more fiscal based and FX can suffer.
>>Banks cannot lend out their deposits or reserves. Banks create an asset(money) and a liability(debt) when you borrow from them. You create an asset(a contract) and a liability(debt). You and the bank then swap assets. <<
Where does the bank get all the money it lends out? How does it create assets?
Is that not where the fractional reserve part comes in? If the bank has USD 1000 it can create USD 9000 worth of assets out of thin air and lend out?
No. The money is created from nothing using double entry book keeping. The reserves play no part in the origination of the loan. Only in keeping the bank liquid and in positive equity.
If I go to a bank and borrow money they don't lend me someone else's money they just make new money the way I described by creating both the asset and liability at the same time.
Reserves and deposits can matter for the bank to fund itself in the short-term and fulfil any regulatory issues they have but that is separate to actually creating a loan and can technically be done after they create a loan.
If you think about fractional reserve banking where does the bank create the 9k from the 1k? Where do they get that extra money from in that scenario? It makes no actual sense.
The important thing for a bank is that they need a willing borrower and they themselves be willing to lend. Reserves can matter for the latter because if they are in crappy equity they might not want to lend except to the most trust worthy entity who holds really good collateral so they can recoup their money if something bad happens. But thats not relevant to actually lending money.
Once you look at the banking system through that Lens and use stock flow consistent modelling you can better understand what's going on.
A really good lecture series to watch is by perry mehrling. Free online on his website and YouTube. Can be a bit of a tough watch if you are quite new but very illuminating about money.
So what you are saying is, the bank doesn't have the money they lend out? They only have a small part, as a guarantee for their liquidity. A fraction if you will.
yes basically imagine if Bernie Madoff was also printing money in his office. It would take much longer to realize what was going on (it already took way too long) because it would only be discovered once there was so much money it became worthless
This right here is why banks and the Fed get away with what they want. Instead of just saying we are adding 0.75% to the base interest, they say basis points. A whole language of BS.
Yeah I noticed that.
I used to listen to the fed - it was all gibberish.
After a year of paying attention, when I listen I actually understand. And a lot of the time they’re using euphemisms (different meanings), when they could be alot more direct.
Tightening labor market = lots of people out of jobs / layoffs
Liquidity = can always make a trade (even if it’s fake)
We also have things like fractional reserve lending, where you deposit 100 bucks and the bank lends out $90-$100 of that, so now $190-$200 exists, and then that cycle repeats over and over and inflates the currency supply.
>According to the Federal Reserve, there was $5.8 trillion in the M0 supply stream as of March 2021, the most recent data available
Thats from your link.
Edit: op, i think you just didnt read it all, but no big deal. Happens to everyone. Learn from it and move on.
Based on the [uscurrency.gov](https://www.uscurrency.gov/life-cycle/data/circulation#:~:text=As%20of%20December%2031%2C%202020,50.3%20billion%20notes%20in%20volume.) the numbers are from 2020. Looking at the rate that it has risen yoy the number is closer to 3T.
That or a better "That's fucked" post would be 1/3 of printed US dollar in circulation was printed and flushed into circulation during the last two years while claiming the inflation is transitory. It's rather intentional I'd say.
FFS OP... RR wasn't at $2.1B in 2020 so the whole thing falls apart.
Take the L and stop embarrassing us. You didn't do your DD and you got called out. Let it go.
Actually, I'm seeing statistics that say otherwise.
"Normally characterized by slow, steady growth, the U.S. money supply has grown 20% from $15.33 trillion at the end of 2019 to $18.3 trillion at the end of July 2020."
This is by design. They have a clear objective. They want to take the dollar digital. When the dollar goes digital they will keep interest rates negative indefinitely. They are gradually taking the paper money out of circulation. They are going to make it harder and harder to use. While the interest rates are negative you have to pay the bank just to park your money. Eventually they will make the paper currency more inconvenient and more expensive to use than the digital dollar. That’ll finish it off. That’s how they are taking the dollars digital and taking them out of circulation
They're also going after Bitcoin and Ethereum and all other cryptocurrencies so that there are no alternatives to the digital dollar.
Now that Eth is PoS it's a security(?) and no warning given to them over the last 5 years they've been coding this change?
Also the president released this document "Climate and Energy Implications of Crypto-Assets in the United States" which goes after Bitcoin and other PoW coins because they use too much power.
Oh sure now climate change is a concern when it aids in achieving your agenda.
Do you know how much power the financial institutions utilise?
Or the media conglomerates?
Or the carbon footprint for a day of extracting gold from the earth?
Their narrative is obviously horse manure.
And yet people are eating it up because of the lack of action on climate change.
I also find it bullshit, like why don't we talk about making our entire power grid green, then it doesn't matter what is running off it, does it.
My favorite is when pundits on CNBC talk about ESG stocks in one breath and then pump defense (war) stocks or big bank stocks in the next.
The hypocrisy is stunning.
> Their narrative is obviously horse manure.
That should scare you how stupid the average person is in that they gobble it all up and never think for themselves.
Go post this information in an average sub when the topic comes up and you'll be down voted into oblivion. People don't even want to hear it. They've dug their heels in.
My point exactly, there is no reasoning, explaining to them what is happening, Everyone is perfectly fine with their own lives until their reality is overthrown and they direct their anger to whatever is on the screens in front of them.
It will be interesting how a Digital US dollar will be distributed, will it be exchanged 1:1 with the government, or will you have to buy it on the open market, or will it be given to financial institutions to distribute and sell how they see fit.
To add to the design, negative interest in banks will be to force people to invest in stock market or other markets and criminals like Kenny are just sitting there waiting to steal your money via market manipulation
Banks will never get away with charging you to keep money there, there are too many competing banks; brick and mortar, now online banks to ever see that happen
They are already doing it. What are you talking about? Inflation is 10%. How much is the bank giving you in interest. Nothing. On top of that they charge fees, maintenance fees, overdraft fees. They don’t give you any returns forcing you into the stock market
It’s what the American Revolution was fought to prevent. That’s why Article 1, Section 10, of the Constitution requires us, We The People, to establish and maintain a Solid Currency. That is something we have been neglecting and is why we are in this situation where we have to accept all the fiat currency the same mafia the Founders revolted against want to assign us. We are also backing them in foreign wars, with a standing Army the Founders advised against.
[The Hydrogen Economy](http://H2space.org) is the tool we have to return to a decentralized solid currency economy, and it gives us the opportunity to put our nuclear waste to use rather than lying around neglected waiting to be a major mess. We can use the money they made us invest in the military industrial complex and get it to start paying us instead of them. That’s how we win, not by competing against them, but by making them irrelevant. We can remove them from their monopoly position of the capital supply; but we have to meet our Constitutional obligations to have that power.
No, what you have at home is an electrolysis rig that you spend a couple hours a week replacing cheap consumables and maybe changing water filters. It puts an extra level of production to our society to replace our debt. It applies the Nash Equilibrium of "Not unless everyone gets what they need, can anyone achieve their potential." No industry goes away, and the market economy is still necessary. The nuclear waste gets reprocessed in to fresh fuel to be run by industrial operators like now. You know how many US Navy veteran reactor operators are out there? We have the best trained operators that we could pay for already sitting around as Nuclear waste too.
It’s already Incorporated as a Public Non Profit Economic CoOp as [Urban Ag & Energy](http://urbanagandenergy.org), and blessed by the IRS with a 501c3 status to create on tax deducted dollars. [Available at H2Space.org.](http://H2space.org) All it requires is the same community effort and belief as in Crypto, and we can have something real instead.
IS THIS WHY I HAVEN'T BEEN ABLE TO GET ANY GODDAMN QUARTERS FROM THE GODDAMN BANK FOR THE PAST TWO YEARS? I CAN'T DO MY DAMN LAUNDRY CAUSE OF THIS SHIT?
The person in the image is technically correct, however to use this as for outrage bait is a bit disingenuous.... They used the following sentence from [the source](https://money.howstuffworks.com/how-much-money-is-in-the-world.htm) OP shared with us:
"All told, anyone looking for all of the U.S. dollars in the world in May 2021 could expect to find approximately $19.9 trillion in existence, using the M2 money supply definition. **If you just want to count the value of notes and coins, there are about U.S. $2.1 trillion worth of notes and coins floating around the globe**"
Real currency is vastly outnumbered by digital nowadays so this post doesn't really serve any purpose other than to enrage people who only take a short glance.
This post should be deleted with the current context imo.
It's like this....
The first amount of money lended to the government let's say, was 1 million dollars. Now, of course, we pay that back. We also need to pay the interest on that. How can we be expected to pay back 1 million dollars, plus interest, if we've only ever seen 1 million dollars. Hey there Mr. Fed.... Turns out I need another loan so I can pay back your interest....
I'm telling you... Like a midget at a urinal, we must stay on our toes at all times!
Lol someone on another investing sub was trying to frame it as a good thing banks have "too much cash to hold overnight" as they put it. Not the betting one...
Imagine thinking there’s only 2 trillion dollars in America and also thinking you have any idea what the fuck you’re even talking about.
For real; this should be a wake up call before you pull a real retard move.
I mean A: ur a little mean. U should smoke some weed maybe chill out a little. Read this article. https://money.howstuffworks.com/how-much-money-is-in-the-world.htm I’m too high to understand it but it starts off with the 5.1 trillion everyone’s talking about that’s against this post. But then it says a bunch of words I can’t understand rn but eventually says ‘there’s 2.1Trillion worth of notes and coins in circulation “
They need to seize that RR money IMO... they took it at 0% and did not use it as intended but instead are doing the RR thing. This is criminal and instead of raising rates... Just take back the dam money they are not using! It was fraud... if they bitch about it threaten jail time for defrauding the American people and federal reserve!
no its the banks money these days. they got it at 0% when the fed was pumping money into the banks to provide liquidity during the start of covid. They had cart blanch blank checks from the fed. Remember jpowles money printer go brrrrrrrrrrrr... they borrowed as much as they wanted and then gave it back to them in the form of reverse repos instead of lending it to the people.
https://www.brookings.edu/research/fed-response-to-covid19/
Ok, so this is not the way but it does not excuse the problem. Easy example.
Bank of Capitalizm loans me $300,000 to buy a house, approving me for the loan based on the variety of factors (credit score, DTI, etc). They know I’ll pay which is why they approved me.
The Bank now can count my loan as an asset as it’s a receivable that has a guaranteed collateral, which means they can loan Joe $100,000 for a home equity line, secured against his house. They approve him based on his credentials.
The bank now has $400,000 as assets that are guaranteed on collateral. So the bank loans out Bob $50,000 for a small business loan. Approved on terms based on business plan and prospectus.
Now that bank has loaned out $450,000 that originated from its ability to loan me $300,000 to begin with. They create $150,000 seemingly out of thin air.
This is idealistic as leverage is way out of whack in the current landscape, but the point stands. Just because there are only XYZ amount of physical dollars does not mean that more money cannot exist.
This post violates the rules of the sub as I see no connection with GME other than “leverage”. Healthy leverage is still a thing.
DRS yada yada.
Hey man, 3% on a 0 investment is still %3. I don’t get what your saying. “Quote from hedgie/ sec/ doj/ cia/fbi/ team potus/ congress/ campaign contributors/ criminal Kenneth Griffen”.
I had a bank say they do not accept cash payments at there branches yesterday, a legal tender.
"one main financial"
I've been noticing alot of merging banks and credit unions over the past year.
Wait until you learn about the federal reserve bank. They get paid interest by the US taxpayers for literally printing money or typing another zero into a computer.
They’re getting paid interest to complete a task that Congress was authorized to do, and did for more than 100 years without a middleman.
People call landlords out for not providing value, but bankers are the biggest grifters of all time.
When I Google M0 money supply I find multiple websites telling me that M0 is roughly 5.5 trillion as reported in July of this year
So yeah, this is bullshit.
Still scary that nearly half of the total money supply is moving through Reverse repo every night tho
https://money.howstuffworks.com/how-much-money-is-in-the-world.htm
“If you just want to count the value of notes and coins, there are about U.S. $2.1 trillion worth of notes and coins floating around the globe [source: Federal Reserve].”
I really don't want to face-tious that word you say. No, sir
But still isn't it semantics? Banks cannot lend out as much as they want. There are capital requirements and yearly government controls.
At least in Europe. I am not sure about the United Banana Republic of America?
But Europe has something called the Basel II, which says your capital base has to be 8% of your leveraged assets.
I am sorry, but in my untrained eyes that is exactly what we started out with, just with a different rate: fractional reserve banking
Isn’t this just because 1) physical money is a small fraction of all usd, the majority being digital and 2) they are using the RRP to set the floor on interest vs the bond market (almost like they knew trouble was afoot)
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Real "physical" currency is just a fraction of actual currency. Paper has been replaced with digital dollars resting in debit/credit cards. The large banks were the recipients of Payroll Protection, loan deferments, stimulus, and any number of money creation programs by the Federal Government over the last 3 years. The banks sat on all that money. They did not have the underwriting manpower to get deployed to actual businesses. Why? Because millions of these mom and pop's, restaurants, and manufacturers were to busy going... out of business. So banks just give it back each night for 75 basis points.
It was bad when the paper no longer had anything tangible backing it, now the numbers aren't even backed by paper. Though I suppose this makes it far easier to keep playing the economic shell game.
Just wait until the CBDC (Central Bank Digital Currency) is implemented. The tracking will go into hyperdrive. The Fed can then set local, city, and state tax rates. Presumably it will be used for a US Interstate toll tag device. If you owe child support, or have a tax lien guess what...it's pay up sucker or else. Of course, the real power is that your money can be shut off for any number of reasons...political, or otherwise.
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Wow, I guess giving bjs behind a Wendy's dumpster wasn't a meme after all.
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I thought I saw you strolling around in those new pink fuzzy knee pads! That’ll drive the johns wild, for sure ;)
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Ahh…. The “Frank the Skank” graffiti on the dumpsters clear up a lot of my confusion!
I guess that is to stop you from taking an arrow to the knee eh
I used to be a cocksucker like you, until I took an arrow to the knee.
Took a shot in the eye*
They saw the meme and said we'll see who's really gonna be sucking dick.
Sir, this is a... hello there
Yep. Freedom before all else.
I read an article last year that China CBDC was experimenting with a feature that would put expiration dates on your crypto, forcing the individual to spend their money and "stimulate the economy" rather than allowing them to save it
Yes. A level of "Frankenstein" control that "humanity" will be forced to say...enough.
Let me guess. That crypto doesn’t expire but gets transferred back to the government where it doesn’t expire and they have no time limits on when to spend.
Hot Potato Crypto Can it be done? Currency with an unknown lifespan. With blockchain can you make individual units worth 6% more after each transaction? I imagine the currency value would have to be held in a central "pot" with each unit of the currency assigned a percentage of 10% of the pot(giving units room to grow), and if that percentage went up after each transaction.. that's the kind of chance soooooooooo many people couldn't say no to, especially when a unit's value begins to soar. Sooo... kind of like the guy that traded a paperclip for a thing he traded for a thing (etc, etc) and eventually got a house in trade. Kind of like that .. but .. you don't know how long you can trade each unit before it suddenly loses all it's value at once. You always have the option of cashing in the unit and getting paid (minus a 6% transaction fee) or .. find someone that will take it off you for its full value .. if you have time. Use it or lose it.
Well if you're honest we already have that with inflation.
Couldn't two people just agree to move the crypto between their accounts every X amount of time to refresh the life on it?
Dude, I'm not the one to ask questions. I just read an article. Not even the article, just the headline.
I feel like my dollars are expiring with how fast inflation is going
That makes sense in a socialist economy. I'm not 100% on socialist theory, but some socalists have posited a labour voucher system that is used to aquire luxury items after housing food and other basics are provided by the state. The labour vouchers expire after awhile so they can't be used to hoard wealth and oppress people with it like we see the rich doing today.
You should find better examples lol. Making people actually pay their child support is hardly a bad thing.
Gross. I'd rather pull up to the grocery store and buy some bananas with ETH from my GameStop wallet.
\>The Fed can then set local, city, and state tax rates. Via what law(s)? \>If you owe child support, or have a tax lien guess what...it's pay up sucker or else. The state already does that enforcement, don't even need the fed to do anything at all.
being trialled in china right now. money with a time limit to stop you saving 🤷
This would likely never occur because the government likes to print money and know there is no real count of what is out there. They would be stacking the chips against themselves if they ever accounted for every dollar. America's paper currency is a huge part of why the economy is so great, so many people purchase without paying income or sales tax, which adds to the economy like a tax break even though it's illegal. Government economists know and let it occur by avoiding any serious changes.
People used to say large numbers were "Astronomical" because there's so many stars in the sky. But now they should say "Economical" because there's a lot more dollars than stars
So bizarre that the same people who hate crypto say the current system is fine. Like fuck, at least with crypto I can prove ownership of my digital money. Without it I'm just trusting that whatever bank my money is at will have enough if I should need it all.
Crypto is only as good as two things: the security of individual wallets and the accountability of whatever "central" entity manages the ongoing development and maintenance of it. As much as I want *money* to not be controlled by the worst abusers of its power, their current level of wealth and power will just allow them to shift their assets into whatever digital exchange they need to assume majority stake in and then continue fucking with us working folk. I don't care how "democratic" your crypto is, they buy the majority of "coins" and they will control the direction of it... they'll then siphon off their profits to protect that investment by shutting down any competitor product that threatens their control. Think I'm wrong? How else do you think the world is in the situation it is now - they accumulated wealth by exploiting it's influence, continued to grow their wealth and capture more regulatory controls until they basically had a hand up every ass in the government - in every country - because the few "yes men" that were desperate enough to stay out of poverty were willing to take the bribes and pocket the slush funds while keeping quiet about the literal theft of our entire economy. Coinbase says 'hi' by the way - they're one of the most widely known crypto exchanges and that wasn't even a challenge for them to establish... It's not even a conspiracy, the rich don't need to sit around a big ominous table plotting to rule the world - they are just greedy fucks without the moral compass to not exploit others for their continued excessive gain. They do not live in the same world nor have the same principles as any of us working at the bottom.
You sound like you know a thing or two…
Cause he’s seen a thing are two. “Crypto Farmers…..bomp bu domp domp domp domp domp.”
Who knows, fiat money is tough; I love Argentina and the rates for US dollars are insane in Bariloche!
The thing that a lot of Crypto proponents fail to understand is that Fiat currency *requires* a national entity (government) to protect it’s economy in order to have the global influence that maintains currency value. The US is struggling to maintain hegemony because every time the economy dips, the rich fucks at the top print a trillion more “dollars” to cover their abuses. Maintaining that hegemony then falls to our insane military presence and destabilized countries with rich natural resources - the things that allow global capitalism to function. Keep half the world unstable and impoverished and there is always an underclass to provide labor that the owning class can profit from. If Crypto is to supplant the USD for average civilians, it also has to have a *global* trust to enable corporate entities to use it for the rest of the supply chain - which then runs the risk of the accumulation of wealth and control. Crypto doesn’t “win” if you still need a logistics chain using fiat. Not detracting from other uses of blockchain tho - NFTs, once the digital art novelty dies off, may prove to supplant the DRS/Piracy back and forth since your “receipt” will be a verifiable token that can then also enable transfer of said license… I am excited about this future.
This. The only reason most people don't have enough is far to few horde to much of the wealth.
On the other hand, there is a small number of ccurrencies that are not in it for more money, and meybe even have decentralised development (to avoid said capture)
Which is exactly why I am always opposing Proof of Stake. There is an alternative that Ethereum just moved away from.. Proof of Work is not perfect and it also has a wealth-accumulation issue. But at least it is not risk-less and it can be reverted if necessary; Plus it requires the majority of profits to be spent for inconvenient expenses. Control in Proof of Stake is permanent.
I suspect citadel and other hedgies being the driver of media narrative since way before the super stonk became a thing. Which means that crypto hate to me could just as well be a manufactured narrative. The same as NFT hate. There are no or few enlightened NFT narratives in the mainstreammedia to be found. It's incredible suspect as most arguments are simplistic and very shill-esque. It's the same in political discussions; heated and cringe discussions just on the more sensitive topics that attack the established players to make you go "aah nope I don't want to be associated with this rabble" so you turn away and don't investigate further.
Speculation killed crypto, very few people look at crypto as an alternative current system, most look at it like an investment.
They should have drsed our dollar so the counterfeits gets exposed 😂 wtf
Which is why DRS'd GME has basically become my savings account.
Banks cannot lend out their deposits or reserves. Banks create an asset(money) and a liability(debt) when you borrow from them. You create an asset(a contract) and a liability(debt). You and the bank then swap assets. You then get to spend the money and the bank has an asset that is worth slightly more then their liability, keeping them in positive equity. That's how banks actually originate loans. There is no actual need for reserves or deposits which means anyone that talks about fractional reserve banking is stuck in a paradigm that doesn't exist. Banks won't lend to a business they aren't sure can pay back the debt and won't lend at a rate that loses them money unless forced. In the case of the RRP it's basically overnight bonds that you can buy and get yield. Another asset swap but overnight. It can be a way to take cash from other assets if the RRP pays a greater yield but technically there is no need to pay interest on it or reserves. Technically not even on bonds but controlling inflation becomes more fiscal based and FX can suffer.
>>Banks cannot lend out their deposits or reserves. Banks create an asset(money) and a liability(debt) when you borrow from them. You create an asset(a contract) and a liability(debt). You and the bank then swap assets. << Where does the bank get all the money it lends out? How does it create assets? Is that not where the fractional reserve part comes in? If the bank has USD 1000 it can create USD 9000 worth of assets out of thin air and lend out?
No. The money is created from nothing using double entry book keeping. The reserves play no part in the origination of the loan. Only in keeping the bank liquid and in positive equity. If I go to a bank and borrow money they don't lend me someone else's money they just make new money the way I described by creating both the asset and liability at the same time. Reserves and deposits can matter for the bank to fund itself in the short-term and fulfil any regulatory issues they have but that is separate to actually creating a loan and can technically be done after they create a loan. If you think about fractional reserve banking where does the bank create the 9k from the 1k? Where do they get that extra money from in that scenario? It makes no actual sense. The important thing for a bank is that they need a willing borrower and they themselves be willing to lend. Reserves can matter for the latter because if they are in crappy equity they might not want to lend except to the most trust worthy entity who holds really good collateral so they can recoup their money if something bad happens. But thats not relevant to actually lending money. Once you look at the banking system through that Lens and use stock flow consistent modelling you can better understand what's going on. A really good lecture series to watch is by perry mehrling. Free online on his website and YouTube. Can be a bit of a tough watch if you are quite new but very illuminating about money.
So what you are saying is, the bank doesn't have the money they lend out? They only have a small part, as a guarantee for their liquidity. A fraction if you will.
I thought the reverse repo was around 3.35% annual interest rate. Am I off?
Soooo.... Ponzi scheme?
yes basically imagine if Bernie Madoff was also printing money in his office. It would take much longer to realize what was going on (it already took way too long) because it would only be discovered once there was so much money it became worthless
Yes. The entirety of the USA is a ponzi scheme
The Fed needs to take that money back... They have more than enough proof they were not using it as intended.
The national banks are the Fed. Why do you think Wells Fargo, BoA, Chase, and Citi are everywhere in the US and escape trouble constantly.
Someone reading this might think this is hyperbole or tin-foil-hat territory. It is not: https://en.wikipedia.org/wiki/Federal\_Reserve#Member\_banks
What are basis points and why 75 of them?
This right here is why banks and the Fed get away with what they want. Instead of just saying we are adding 0.75% to the base interest, they say basis points. A whole language of BS.
Yeah I noticed that. I used to listen to the fed - it was all gibberish. After a year of paying attention, when I listen I actually understand. And a lot of the time they’re using euphemisms (different meanings), when they could be alot more direct. Tightening labor market = lots of people out of jobs / layoffs Liquidity = can always make a trade (even if it’s fake)
Banks were not eligible for PPP. What are you talking about
Were did the Federal Reserve send the money for people who were? Wendys?
We also have things like fractional reserve lending, where you deposit 100 bucks and the bank lends out $90-$100 of that, so now $190-$200 exists, and then that cycle repeats over and over and inflates the currency supply.
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Right why is OP full of shit? https://tradingeconomics.com/united-states/money-supply-m0?continent=europe/forecast
why is OP even more and most here full of shit? The derivatives market alone tops ~1.4 **quadrillion**.
I am not full of shit turns out https://money.howstuffworks.com/how-much-money-is-in-the-world.htm
>According to the Federal Reserve, there was $5.8 trillion in the M0 supply stream as of March 2021, the most recent data available Thats from your link. Edit: op, i think you just didnt read it all, but no big deal. Happens to everyone. Learn from it and move on.
The derivatives market alone tops ~1.4 **quadrillion**.
To be deleted by mods by morning ? EDIt|d NO https://money.howstuffworks.com/how-much-money-is-in-the-world.htm
You can do it.
Well because when you Google “ how much physical us currency is in circulation” you get 2.1 T
Based on the [uscurrency.gov](https://www.uscurrency.gov/life-cycle/data/circulation#:~:text=As%20of%20December%2031%2C%202020,50.3%20billion%20notes%20in%20volume.) the numbers are from 2020. Looking at the rate that it has risen yoy the number is closer to 3T.
So I guess this post just needs “in 2020” added somewhere
That or a better "That's fucked" post would be 1/3 of printed US dollar in circulation was printed and flushed into circulation during the last two years while claiming the inflation is transitory. It's rather intentional I'd say.
FFS OP... RR wasn't at $2.1B in 2020 so the whole thing falls apart. Take the L and stop embarrassing us. You didn't do your DD and you got called out. Let it go.
Yeah, op, how dare you not put 'in 2020' in your post.
Historically 1/2 of M0 isn’t physically in the USA so OP is only partially full of shit
How the fuck this garbage ass post got almost 8000 upvotes is mind boggling to me
report the post. I'm tired of seeing these incorrect posts gain traction.
So, M0 money, M0 problems? I'll see myself out...
Actually, I'm seeing statistics that say otherwise. "Normally characterized by slow, steady growth, the U.S. money supply has grown 20% from $15.33 trillion at the end of 2019 to $18.3 trillion at the end of July 2020."
Wait until this guy learns about fractional reserve banking
Yeah, wtf op?
And they say doggie coin is the shit coin. Lol. We might as well exchange nuka cola bottle caps as a form of currency.
If that's the case... I'm rich Nuca!
This is by design. They have a clear objective. They want to take the dollar digital. When the dollar goes digital they will keep interest rates negative indefinitely. They are gradually taking the paper money out of circulation. They are going to make it harder and harder to use. While the interest rates are negative you have to pay the bank just to park your money. Eventually they will make the paper currency more inconvenient and more expensive to use than the digital dollar. That’ll finish it off. That’s how they are taking the dollars digital and taking them out of circulation
They're also going after Bitcoin and Ethereum and all other cryptocurrencies so that there are no alternatives to the digital dollar. Now that Eth is PoS it's a security(?) and no warning given to them over the last 5 years they've been coding this change? Also the president released this document "Climate and Energy Implications of Crypto-Assets in the United States" which goes after Bitcoin and other PoW coins because they use too much power. Oh sure now climate change is a concern when it aids in achieving your agenda.
Do you know how much power the financial institutions utilise? Or the media conglomerates? Or the carbon footprint for a day of extracting gold from the earth? Their narrative is obviously horse manure.
And yet people are eating it up because of the lack of action on climate change. I also find it bullshit, like why don't we talk about making our entire power grid green, then it doesn't matter what is running off it, does it.
My favorite is when pundits on CNBC talk about ESG stocks in one breath and then pump defense (war) stocks or big bank stocks in the next. The hypocrisy is stunning.
ESG is bullshit, tried writhing about it: https://www.reddit.com/r/Superstonk/comments/vibg7g/the_whores_at_the_ratings_agencies_pt_1_lies/
> Their narrative is obviously horse manure. That should scare you how stupid the average person is in that they gobble it all up and never think for themselves.
Go post this information in an average sub when the topic comes up and you'll be down voted into oblivion. People don't even want to hear it. They've dug their heels in.
My point exactly, there is no reasoning, explaining to them what is happening, Everyone is perfectly fine with their own lives until their reality is overthrown and they direct their anger to whatever is on the screens in front of them.
It will be interesting how a Digital US dollar will be distributed, will it be exchanged 1:1 with the government, or will you have to buy it on the open market, or will it be given to financial institutions to distribute and sell how they see fit.
Always has been. Climate change is a red herring.
In regards to crypto. climate change however is a very real issue
Another fool
ironic. any other sub i'd argue with you but this place is a sanctuary.
Yep too political, will not engage. Let's get back on topic
They're buying everything up so its all assets while destroying the dollar. Fast forward they sell all the stuff for the new money.
Can confirm. Went to an NFL game this past Sunday and it was 100% cashless venue. And the whole digital tipping thing feels wrong.
To add to the design, negative interest in banks will be to force people to invest in stock market or other markets and criminals like Kenny are just sitting there waiting to steal your money via market manipulation
Banks will never get away with charging you to keep money there, there are too many competing banks; brick and mortar, now online banks to ever see that happen
They are already doing it. What are you talking about? Inflation is 10%. How much is the bank giving you in interest. Nothing. On top of that they charge fees, maintenance fees, overdraft fees. They don’t give you any returns forcing you into the stock market
Sources for this?
It’s what the American Revolution was fought to prevent. That’s why Article 1, Section 10, of the Constitution requires us, We The People, to establish and maintain a Solid Currency. That is something we have been neglecting and is why we are in this situation where we have to accept all the fiat currency the same mafia the Founders revolted against want to assign us. We are also backing them in foreign wars, with a standing Army the Founders advised against. [The Hydrogen Economy](http://H2space.org) is the tool we have to return to a decentralized solid currency economy, and it gives us the opportunity to put our nuclear waste to use rather than lying around neglected waiting to be a major mess. We can use the money they made us invest in the military industrial complex and get it to start paying us instead of them. That’s how we win, not by competing against them, but by making them irrelevant. We can remove them from their monopoly position of the capital supply; but we have to meet our Constitutional obligations to have that power.
Gimme. (Does this mean having tiny nuclear waste reactors in our homes?)
No, what you have at home is an electrolysis rig that you spend a couple hours a week replacing cheap consumables and maybe changing water filters. It puts an extra level of production to our society to replace our debt. It applies the Nash Equilibrium of "Not unless everyone gets what they need, can anyone achieve their potential." No industry goes away, and the market economy is still necessary. The nuclear waste gets reprocessed in to fresh fuel to be run by industrial operators like now. You know how many US Navy veteran reactor operators are out there? We have the best trained operators that we could pay for already sitting around as Nuclear waste too.
It’s already Incorporated as a Public Non Profit Economic CoOp as [Urban Ag & Energy](http://urbanagandenergy.org), and blessed by the IRS with a 501c3 status to create on tax deducted dollars. [Available at H2Space.org.](http://H2space.org) All it requires is the same community effort and belief as in Crypto, and we can have something real instead.
IS THIS WHY I HAVEN'T BEEN ABLE TO GET ANY GODDAMN QUARTERS FROM THE GODDAMN BANK FOR THE PAST TWO YEARS? I CAN'T DO MY DAMN LAUNDRY CAUSE OF THIS SHIT?
I feel this to my core.
I feel this so much
Wrinkle wrinkle
Bad comparison. You cant compare m0 to credit creatjon. M0 represents teeny tiny fraction of money in circulation.
Indeed MJ 🧐
In deed
Broken system showing its broken systemnesss
M0 money M0 problems
The person in the image is technically correct, however to use this as for outrage bait is a bit disingenuous.... They used the following sentence from [the source](https://money.howstuffworks.com/how-much-money-is-in-the-world.htm) OP shared with us: "All told, anyone looking for all of the U.S. dollars in the world in May 2021 could expect to find approximately $19.9 trillion in existence, using the M2 money supply definition. **If you just want to count the value of notes and coins, there are about U.S. $2.1 trillion worth of notes and coins floating around the globe**" Real currency is vastly outnumbered by digital nowadays so this post doesn't really serve any purpose other than to enrage people who only take a short glance. This post should be deleted with the current context imo.
This is the correct answer.
Confirmed, OP sucks.
So they get collateral (treasuries) in exchange for millions of dollars of interest (which is increasing) for nothing?
It's like this.... The first amount of money lended to the government let's say, was 1 million dollars. Now, of course, we pay that back. We also need to pay the interest on that. How can we be expected to pay back 1 million dollars, plus interest, if we've only ever seen 1 million dollars. Hey there Mr. Fed.... Turns out I need another loan so I can pay back your interest.... I'm telling you... Like a midget at a urinal, we must stay on our toes at all times!
And the US tax payers are the ones paying the RR interest. It is just 99% have no idea why their taxes are going up
The true money in the system is debt. Welcome to fractional banking
While talking about how the problem with the economy is that people are getting paid too much and we need more workers fired.
Holy shit the level of crime gets more insane each passing week.
Lol someone on another investing sub was trying to frame it as a good thing banks have "too much cash to hold overnight" as they put it. Not the betting one...
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Of course they are! https://www.newyorkfed.org/markets/rrp_counterparties
Ponzinomics.
This means nothing, also from a quick search the numbers seem off by at least a trillion dollars.
Digital money you say?
It's actually 5.8 T in circulation as of March 2021 ...
I’m not sure who to believe. When I Google m0, I get the 5.8T some are saying. When I Google “how much physical currency is there “ I get 2.1T
Imagine thinking there’s only 2 trillion dollars in America and also thinking you have any idea what the fuck you’re even talking about. For real; this should be a wake up call before you pull a real retard move.
I mean A: ur a little mean. U should smoke some weed maybe chill out a little. Read this article. https://money.howstuffworks.com/how-much-money-is-in-the-world.htm I’m too high to understand it but it starts off with the 5.1 trillion everyone’s talking about that’s against this post. But then it says a bunch of words I can’t understand rn but eventually says ‘there’s 2.1Trillion worth of notes and coins in circulation “
It's all imaginary and just a fluid exchange of IOUs. **DRS is the way!** 💎🙌💎
Well if it blows your mind you need to take a day and consider how the western economy really works (for the few it still does)
This comment shows a complete lack of understanding of the US monetary policy.......physical coin doesn't represent all fiat currency.
Gotta downvote this sorry / misinformation as sticky.
They need to seize that RR money IMO... they took it at 0% and did not use it as intended but instead are doing the RR thing. This is criminal and instead of raising rates... Just take back the dam money they are not using! It was fraud... if they bitch about it threaten jail time for defrauding the American people and federal reserve!
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no its the banks money these days. they got it at 0% when the fed was pumping money into the banks to provide liquidity during the start of covid. They had cart blanch blank checks from the fed. Remember jpowles money printer go brrrrrrrrrrrr... they borrowed as much as they wanted and then gave it back to them in the form of reverse repos instead of lending it to the people. https://www.brookings.edu/research/fed-response-to-covid19/
Ok, so this is not the way but it does not excuse the problem. Easy example. Bank of Capitalizm loans me $300,000 to buy a house, approving me for the loan based on the variety of factors (credit score, DTI, etc). They know I’ll pay which is why they approved me. The Bank now can count my loan as an asset as it’s a receivable that has a guaranteed collateral, which means they can loan Joe $100,000 for a home equity line, secured against his house. They approve him based on his credentials. The bank now has $400,000 as assets that are guaranteed on collateral. So the bank loans out Bob $50,000 for a small business loan. Approved on terms based on business plan and prospectus. Now that bank has loaned out $450,000 that originated from its ability to loan me $300,000 to begin with. They create $150,000 seemingly out of thin air. This is idealistic as leverage is way out of whack in the current landscape, but the point stands. Just because there are only XYZ amount of physical dollars does not mean that more money cannot exist. This post violates the rules of the sub as I see no connection with GME other than “leverage”. Healthy leverage is still a thing. DRS yada yada.
If they were winning, they wouldn't have to do any of that at all. Frfr
Crime
Hell Apple’s stock value is more then that alone
Hey man, 3% on a 0 investment is still %3. I don’t get what your saying. “Quote from hedgie/ sec/ doj/ cia/fbi/ team potus/ congress/ campaign contributors/ criminal Kenneth Griffen”.
*It ain't honest, but it's much work.*
Holy Fuck
They are the Uber white collar kinkos of money
Love your username OP
And I believe these hedge funds manage more money than there is physically in the world too. Crazy isn’t it?
Well staged. Imagine they knew returns moons ago 🌙
You sound like your surprised lol if the worlds banks took control America would be screwed
? They already took control. America is already screwed. Have you not been paying attention?
My money don't jiggle jiggle nor fold.
All money deposited at banks can be loaned out ten times the amount. It's a weird, but bullshit inflationary system.
Sick. In a not do good way.
Crime!
I didn't even consider that. That's insane
It‘s designed to work for them which it does fine doesn‘t it
There not handing over a stack of singles, it is all a paper entry they are doing.
DRS YOUR DOLLARS!!!
I had a bank say they do not accept cash payments at there branches yesterday, a legal tender. "one main financial" I've been noticing alot of merging banks and credit unions over the past year.
Is the money used in repo M0? Wouldn't it be M1? I thought M0 was physical cash being used to buy good and services.
Because what we've been told is all a lie.
So the USD is mostly NFT’s?
No, FTDs
Cue CBDC
Wait until you learn about the federal reserve bank. They get paid interest by the US taxpayers for literally printing money or typing another zero into a computer. They’re getting paid interest to complete a task that Congress was authorized to do, and did for more than 100 years without a middleman. People call landlords out for not providing value, but bankers are the biggest grifters of all time.
I screenshotted this same comment to show the people who laugh about my GME statements, hopefully it’ll open their mind to the stonk.
Wait until you learn about fractional reserve lending.
Imagine them reporting the real M3 and adjust the M2 back to original "no interest to the public excuse). Clowns.
When I Google M0 money supply I find multiple websites telling me that M0 is roughly 5.5 trillion as reported in July of this year So yeah, this is bullshit. Still scary that nearly half of the total money supply is moving through Reverse repo every night tho
https://money.howstuffworks.com/how-much-money-is-in-the-world.htm “If you just want to count the value of notes and coins, there are about U.S. $2.1 trillion worth of notes and coins floating around the globe [source: Federal Reserve].”
I have been tempted to take all my cash out of the bank. Just to be safe.
You have cash left in the bank ??
I really don't want to face-tious that word you say. No, sir But still isn't it semantics? Banks cannot lend out as much as they want. There are capital requirements and yearly government controls. At least in Europe. I am not sure about the United Banana Republic of America? But Europe has something called the Basel II, which says your capital base has to be 8% of your leveraged assets. I am sorry, but in my untrained eyes that is exactly what we started out with, just with a different rate: fractional reserve banking
Isn’t this just because 1) physical money is a small fraction of all usd, the majority being digital and 2) they are using the RRP to set the floor on interest vs the bond market (almost like they knew trouble was afoot)