ZERO RESERVE REQUIREMENTS

>ZERO RESERVE REQUIREMENTS
>ZERO RESERVE REQUIREMENTS
>ZERO RESERVE REQUIREMENTS
>ZERO RESERVE REQUIREMENTS
>ZERO RESERVE REQUIREMENTS

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en.wikipedia.org/wiki/Haym_Salomon
youtube.com/watch?v=p5NePWLVDGk
twitter.com/AnonBabble

AHAHHAAHAHAHHAHAHAHAAHAHAHAHAHAHAHAH

PRINT INFINITE MONEY

BRRRRRRRRRRRRRRRRRBRRRRRRRRRRRRRRBRRRRRRRRRRRRRRRRRRRRR

How do leftists pretend we don't still live under a Keynesian system?

w-what does that mean?

infinite lending

hyperinflation pending, likely imminent

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Fractional reserve banking is dead
Banks can loan infinite money

Guess we're permanently headed towards a cashless society.

Good time to get a loan?

ERR: DIV BY 0

Why would i not want my cash to become worth more?

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BRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR

Deflation is a bad thing because it makes the power of your dollar weaker. For instance, if you have to pay a fixed loan, it will cost you most to finance under a deflationary environment than an inflationary environment. The ideal scenario for the Fed would be a 2% inflation rate. In order to maintain that, though, the Fed must pump money into the system via repos so that there is not a spike in deflation. With all the bars, restaurants, and various other retailers closing shop indefinitely, no one can go out and spend money, and thus will hoard it. This has an direct effect on the money supply.

imagine unironically believing this

>Deflation is a bad thing because it makes the power of your dollar weaker.

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>deflation is bad because if u buy things on credit you slightly lose out
>despite the fact that the buying power of your dollar is constantly going up in relation to all the shit you are literally constantly buying just to exist

the real reason deflation is bad is because it kills people loaded with debt. Deflation for any extended time would bankrupt the entire system

So fed creating money from thin air is not enough, now every bank will do so too?

who could have imagined that if you let the banks own the currency that you'd wind up with an economic system biased towards debt

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Do they really? Tax breaks for the rich are also a Keynesian stimulus albeit the mechanism of action is different.

desu our nation has been a battle of debtors and creditors since its founding (the debtor's prisons, the real estate speculation, the indebted farmers and the 'Cross of Gold', etc)

Most people in America live paycheck to paycheck and don't even have $500 saved in their bank account. These very same people are maxing out credit cards and other forms of loans in order to live. A deflationary environment would ineffably fuck them, which in turn would lead to mass defaults and further collapse of the financial system--ultimately affecting the economy. That's why the only thing the Fed can do is pump more dollars and lower the interest rate and hope for the best. The only remedy for all this would be a cure or vaccine for the Chinese virus.

en.wikipedia.org/wiki/Haym_Salomon

How can I make a bank?

Literally the only scenario I can possibly think of is it will hurt our exports; granted we're not exporting shit right now because any country with competent leadership has quarantined itself.

>source: my ass

> it's real
HAHAHAHAHAHAHAHAHAHAHAHA HOLLY SHIT

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youtube.com/watch?v=p5NePWLVDGk

>NOOO NOT THE HECKIN BANKERINOS NOT MY PRECIOUS WECIOUS KEYNESIAN PARASITE CLASS NNOOOOOOOO THE MONETARY SYSTEM IS SUPPOSED TO ENSLAVE THE PEOPLE

That or maybe the government can stop being a peice of shit.

"all it takes" is to be on the + side of your balance.
deflation amplifies your positive balance as well as your debt

Because Keynesian is a buzzword that you don't know the meaning of. This is a monetarist policy, not Keynesian

people can still spend / make big purchases from their computer

Also deflation is bad because there's literally no reason to engage in any economic activity in a deflationary environment. The Great Depression was as bad as it was because the Fed at the time was run by retards like you guys who were more worried about inflation being too high in the future than the tens of millions who were unemployed at the time, so they kept interest rates artificially high.

haha hee hee hee
The government would much rather prefer you in permanent debt slavery, if not, then dead.

get a load of this jew, deflation makes purchasing power stronger by devaluing EVERYTHING. Jesus christ you people are horrible

see

does that stop steam from operating?

this.

>This is a monetarist policy
8/10 troll

so, what the fuck do I do? the financial system is literally collapsing, is bitcoin the alternative? I don't want to die.

naisu, this mean I hire goons and kill people now?

Quit fucking fear mongering you worthless parasite.
They are PRIORITIZING household/medical supplies. Every other nonessential product is still being shipped out but not as quickly as the essential supplies.

what happened in 08 will happen again on top of this dump and we'll bail the banks out again

It's been fun, lads.

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Keep in mind that the Fed isn't trying to prevent deflation or cause inflation.
If they wanted to, they could accomplish it with a vastly smaller printing effort by just handing the money to poor people (aka "people's QE", "helicopter money", etc), because they spend it immediately.

Their motivation for zero reserve requirement and other measures is to prop up the financial system and try to keep credit lines open (and spreads reasonable) for large corporations that need them.

Don't buy bitcoin, it acts as a speculative asset and does not hold value during crises.
Just hold cash right now and wait.
Hyperinflation is still a long way off, if it comes at all.

Existing debt costs more but doesn’t go away. Assets are worth less but still being paid for (upside down). This leads to repossessions, bankruptcies, foreclosures. Not to mention the side effect that lots of retirement funds are heavily invested in commercial and residential real estate...

People hoard cash instead of investing. Getting a line of credit is more difficult, if not impossible, meaning debt-funded ventures don’t get started.

Prices drop so companies make less profit. So they produce less goods and services. So they don’t hire as many employees. So people have less money to buy things. So they drop prices. AKA deflation spiral

Deflation is what happens during a depression. USA in the 30s, Japan in the 90s. It’s the result of an asset bubble popping.

TLDR Things are cheaper but less is made, unemployment increases. Existing debt is more difficult to pay back. Investment ceases.

this is the shit that happens when you meme
>LINK $1000 EOY
and
>LINK FUNDAMENTALLY TIED TO THE PRICE OF A COFFEE CUP
at the same time

what the actual fuck

LOL keynesians are a literally mentally ill
you said deflation makes the fiat weaker
you are fucking retarded to a point that is almost impossible

1 dollar buys a candy
now due to inflation, you need 2 dollars

how the fuck is that making the fucking dollar stronger you literal jewish thief

That's funny because I would certainly prefer the government employees responsible for such decisions to be dead

>Deflation is a bad thing because it makes the power of your dollar weaker.
Sir, would you please take out that banker's cock out of your mouth?

>deflation
>makes the power of your dollar weaker
Literally exactly the opposite of what happens unless you work in the financial field you absolute fucking shyster