> oh sorry didn't see your second comment. yeah i'm aware of fractional reserve lending.  it's officially zero reserve now, at least in the jewnited states. and it's de facto zero reserve in most of the world. > probably because banking is my job. forest for the trees. > again, there is some accountability, meaningless words. > which is why the bank of canada is currently giving billions of dollars in 1-day loans to banks to meet reserve requirements at end of day, every day. if they stop, the rest of the banking system stops issuing credit (fictional cash). if that happens, the economy tanks because profitability requires money printing. it's a matter of simple arithmetic. > if the banks could do what you're saying what do you mean? issuing fictional cash and coins? every bank loan is issuance of fictional cash and coins. that's why bank runs are possible. hello? > there'd be no point. to what? > but the bailout is, of course, inevitable. the bailout never stopped. capitalism runs on bailout. this isn't what you don't understand. and i don't understand why you don't understand this. all you need to do are some simple thought experiments or just play some group games to show you that a anything-and-everything-only-for-fi nancial-profit economy necessarily runs on fiat currency creation and that that fiat currency creation has to accelerate over time simply to keep the rate of profitability constant. > it's just not politically viable right now. what do you mean? the bailout is continuous and omnipresent. it never started because it's been going on forever. it's never stopped because it's been going on forever.
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