Banks should print more money without telling anyone to get more cash without devaluing currency

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Legitimate-Web-5540@reddit

They do. It’s just with consent of the fed and extra steps.

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lfmelhoranca@reddit

the sub changed from crazy ideias to just dumb?

the value decrease comes from more money in the market without its face value going up, it’d still be perceived when it actually hits the market

it’s not a communication issue

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Stuck_in_my_TV@reddit

At least 9/10 “ideas” here are either things already being done or so dumb as to not even warrant laughing at.

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One-Stranger-6894@reddit

Jesus Christ, lack of basic financial literacy is one of the reasons why so many people teeter on financial ruin on a daily basis

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TomboyArmpitSniffer@reddit (OP)

No no, the banks will print real money, they just wont tell anyone to prevent inflation

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lokii_0@reddit

if the banks print money then by definition it isn't real money, much like if you or I printed money. Jesus. how does anyone not know this?

this is either a pretty decent troll or you are just....eesh I have no words.

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OldEquation@reddit

How does not telling one prevent inflation? The money still exists.

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ruinrunner@reddit

currency isn’t devalued because they tell people it’s devalued, it’s devalued when there’s more of it so each dollar is worth less

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Uranium-Sandwich657@reddit

This implied that a single economy has a limited value cap.

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CaptainLoggy@reddit

It does, there's only so much economy around at any given time. The cap can change, but the size of a national economy is a real thing

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aHumanRaisedByHumans@reddit

You realize banks don't have the means to print money right? That isn't what banks do.

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helikophis@reddit

They don’t print money, but they do increase M2 and M3 through borrowing.

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IndividualistAW@reddit

They essentially do exactly that when they loan out your deposits.

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sonicjesus@reddit

It will devalue either way. The more people spend, the less the currency is worth.

And that's part of the problem. Usually high inflation leads to lower spending, but people just keep spending away making prices higher, and the dollar less valuable.

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ecrane2018@reddit

They do increase the money supply by issuing loans on fractional reserves banking. They are “printing” money every time they issue a loan

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Orangeshowergal@reddit

Ah yes, every bank in the world having the chance to print money.. what could go wrong?

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lexicon_riot@reddit

Banks literally create new money when the make loans... and yes it has gone horribly wrong already

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Orangeshowergal@reddit

The act of giving a loan is an entirely different concept than printing physical money.

There are many economic resources that can help you understand the different ideas.

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lexicon_riot@reddit

If I withdraw a loan as cash, the bank effectively printed the cash

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Orangeshowergal@reddit

You’re so off base, it’s concerning. I won’t discuss any further, because it’s just silly

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mike8111@reddit

Look up fractional reserve banking, it explains how this concept works. Yes, the banks are creating money by giving loans. Yes this accounts for most of the US Money supply.

Briefly, banks are required to keep only 10% of their deposits in cash. They get $100 in deposits, and loan out $90. That $90 goes into other banks, who then loan out $81, which goes into other banks who loan out $72 and so on.

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Fireproofspider@reddit

I mean, the exact wording is wrong but when we say "printing money" with regards to inflation it means that the amount of money the bank is obligated to keep in cash (as opposed to loan and other investments) is being lowered. So they are increasing the amount available for loans = "printing money".

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lexicon_riot@reddit

You won't discuss any further because you know I'm right but okay

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deleted_by_reddit@reddit

[removed]

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pileofdeadninjas@reddit

They don't print money at the bank lol

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lexicon_riot@reddit

Yes they do? This is how fractional reserve banking works

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cubonelvl69@reddit

Depends on how you're defining "printing"

A bank cannot physically manufacture more $100 bills

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ChiefWeedsmoke@reddit

Fuck a bank, just do that yourself. I mean you will devalue the currency a little bit but I wouldn't worry about it.

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drlsoccer08@reddit

So that’s how you get you and your company in intense legal trouble.