Comments by "gerhard7" (@gerhard7323) on "How banks create money" video.

  1. This is why the UK housing market and its associated mortgage market is SO crucial to propping up the UK economy and why ever rising housing prices are deliberately encouraged despite frequent claims to the contrary. I'm of the cynical opinion that government actually restricts housing supply in order to promote scarcity and drive the market and prices ever upwards.
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  2. This was why top bankers' eye watering pay packets should have been even more controversial than they ever were or are. Bank 'profits' aren't fully crystallized until a loan's been paid off, but they're effectively paid bonuses on loans that have not been crystallized or in some cases might never be as in 2008.
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  3. None so blind as those who WON'T see.
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  4. This is why the UK housing market and its associated mortgage market is SO crucial to propping up the UK economy and why ever rising housing prices are deliberately encouraged despite frequent claims to the contrary. I'm of the cynical opinion that government actually restricts housing supply in order to promote scarcity and drive the market and prices ever upwards.
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  5. A continuum yes, but only until it isn't. 2008 wasn't called the Credit Crunch for nothing, although some insisted on calling it a liquidity crisis which it also was. Old loans were being paid off a lot faster than new ones could be created not least because the lenders were running out of creditworthy borrowers to lend to as the entirely avoidable man-made greed induced economic crisis deepened. Brown, Bernanke and Obama didn't so much save the world back then as prop up and return to the ante status quo whilst ironically make the rich even richer into the bargain with their financial alchemy. As ever, it's the way you tell 'em. 'What a fool believes,eh?'
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  6. ​ @liamweavers9291 It's a piece of 'paper' with no intrinsic value unlike say, gold. It has value because it is decreed by the state to have value and it is thus accepted by everyone as having that face value as a means of exchange for goods and services. It is also the only means by which you can pay your taxes to the state. Money by decree or 'fiat' which, once paid, effectively disappears into the ether. In reality your taxes pay for nothing. What they do do is help curb inflation and help create the space for further money creation.
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