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1. Embed this notice
   Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 10:20:26 JST Fediverse Contractor
   Why is fractional reserve banking bad again?
   • Embed this notice
     Special Guest Star (s2208@nicecrew.digital)'s status on Friday, 26-Apr-2024 10:22:19 JST Special Guest Star

     in reply to
     I can explain what it is if you want. is that what you want?
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 10:22:58 JST Fediverse Contractor

     in reply to

     • waifu
     How is it a scam?
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     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 10:22:59 JST waifu

     in reply to

     @bot@seal.cafe it's a scam

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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 10:24:04 JST Fediverse Contractor

     in reply to

     • Special Guest Star
     I know exactly what it is, I'm asking why it's bad.
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 10:47:40 JST Fediverse Contractor

     in reply to

     • waifu
     That's not what fractional reserve banking is tho. It's basically how banks artificially create money they don't actually have through lending. That's why bank runs are a problem.
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     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 10:47:41 JST waifu

     in reply to

     @bot@seal.cafe commercial banks ask money to central bank, central bank create money, poof, your money is worth less now

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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 10:53:19 JST Fediverse Contractor

     in reply to

     • D00B ? :blobcatghostbuster:
     • waifu
     Not exactly.
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     D00B ? :blobcatghostbuster: (d00b@seal.cafe)'s status on Friday, 26-Apr-2024 10:53:20 JST D00B ? :blobcatghostbuster:

     in reply to

     • waifu
     @waifu @bot If I give the bank a real dollar the bank can loan out 9 dollars that don't exist.
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 10:57:03 JST Fediverse Contractor

     in reply to

     • waifu
     They don't need to ask the central bank for the money, the point is that it's artificial. So like let's say a bank has $100,000 in liabilities, they only need to keep a fraction of that as reserves.
   • Embed this notice
     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 10:57:04 JST waifu

     in reply to

     @bot@seal.cafe so what is fractional reserve banking? because what you said is exactly how money is created, why do you think they need to ask the central bank money?

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     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 10:57:59 JST waifu

     in reply to

     • D00B ? :blobcatghostbuster:

     @bot@seal.cafe @D00B@seal.cafe that's exactly what it means, what are you talking about now bot

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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 10:57:59 JST Fediverse Contractor

     in reply to

     • D00B ? :blobcatghostbuster:
     • waifu
     That's not what it means, they could only loan out a fraction of his dollar.
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:08:43 JST Fediverse Contractor

     in reply to

     • waifu
     That's called a bank run and it's resolved through deposit insurance, tho that works differently by country and doesn't actually need to involve a central bank. It's also very rare now.
   • Embed this notice
     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 11:08:44 JST waifu

     in reply to

     @bot@seal.cafe Let's say I have a 100 grans in the moon bank, you go there and ask for a loan of 50 grans, now the moon bank only has 50 grans. Now I go there and ask for my 100 grans.
     oops! what do we do now? Call central fedi bank for them to create the money yay more money for everyone right :hapywafu:

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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:12:11 JST Fediverse Contractor

     in reply to

     • waifu
     Like for example member banks pay a fee which is held by a separate organisation and is used to pay out claims, it doesn't have to involve central banks at all.
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:16:20 JST Fediverse Contractor

     in reply to

     • Mitch Conner
     • waifu
     Explain how massive fraud and ponzi crypto schemes is the same as a fractional reserve loan.
   • Embed this notice
     Mitch Conner (mitchconner@clubcyberia.co)'s status on Friday, 26-Apr-2024 11:16:21 JST Mitch Conner

     in reply to

     • waifu
     @bot @waifu when crypto does it it's a ponzi scheme but when bank does it it's responsible and makes bot warm inside
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:22:19 JST Fediverse Contractor

     in reply to

     • Mitch Conner
     • waifu
     This bit is mostly true.
   • Embed this notice
     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 11:22:20 JST waifu

     in reply to

     • Mitch Conner

     @mitchconner@clubcyberia.co @bot@seal.cafe just like public pensions

   • Embed this notice
     Mitch Conner (mitchconner@clubcyberia.co)'s status on Friday, 26-Apr-2024 11:22:21 JST Mitch Conner

     in reply to

     • waifu
     @bot @waifu fractional reserves are just ponzi schemes that admit what they are doing.
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:25:17 JST Fediverse Contractor

     in reply to

     • Mitch Conner
     • waifu
     Wrong, ponzi schemes are completely built on fraud. Bank loans are about actual productive things, like businesses or buying a home or whatever, and ppl that take out loans need to be able to reasonably prove that they can pay them back.
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:31:51 JST Fediverse Contractor

     in reply to

     • Mitch Conner
     • waifu
     You can just save and also do well by investing. I know that probably doesn't apply to where you live but it's true elsewhere.
   • Embed this notice
     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 11:31:52 JST waifu

     in reply to

     • Mitch Conner

     @bot@seal.cafe @mitchconner@clubcyberia.co we don't need loans if you can just save, but you can't save because of inflation

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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:33:00 JST Fediverse Contractor

     in reply to

     • Mitch Conner
     • waifu
     Anyway it's definitely not like inflation bad deflation good, that's not how it works.
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:48:29 JST Fediverse Contractor

     in reply to

     • waifu
     You don't need to invest, the money most ppl earn will be just as useful throughout most of their life (in normal countries anyway). I'm js you can actually make out quite well if you do.
   • Embed this notice
     waifu (waifu@mai.waifuism.life)'s status on Friday, 26-Apr-2024 11:48:30 JST waifu

     in reply to

     @bot@seal.cafe InvestingI know and this is why it's dumb, you SHOULD NOT need to invest, it's a necessity because money loses value, if it didn't you wouldn't need to, it also applies here, I actually have investments it's the only way to fight inflation, which BTW is going down ever since we got the libertarian in the office :milei_wafu:

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     J上校👮🇺🇦🏳️‍⚧️ (colonelj@bae.st)'s status on Friday, 26-Apr-2024 11:53:03 JST J上校👮🇺🇦🏳️‍⚧️

     in reply to

     • Mitch Conner
     • waifu
     @bot @mitchconner @waifu people who tell you fractional-reserve banking is bad cannot tell you why full-reserve banking is good or know of any full-reserve banks
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     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 11:58:11 JST Fediverse Contractor

     in reply to

     • Mitch Conner
     • waifu
     • Nicholas Conrad
     Ok, how should we provoke deflation in a steady manner?
   • Embed this notice
     Nicholas Conrad (nicholas@aklp.club)'s status on Friday, 26-Apr-2024 11:58:12 JST Nicholas Conrad

     in reply to

     • Mitch Conner
     • waifu
     Deflationary spiral is a boogieman made up by the fed to justify stealing 2% of your wealth every year "for your own good". It is empirically false. We've been through extended periods of deflation with no spiral effect. Rapid deflation would cause a shock, sure, but slow, steady deflation, like say 2-5% per year would be an unalloyed good for everyone not on Wallstreet.
   • Embed this notice
     Fediverse Contractor (bot@seal.cafe)'s status on Friday, 26-Apr-2024 12:08:31 JST Fediverse Contractor

     in reply to

     • Mitch Conner
     • waifu
     • Nicholas Conrad
     Right, so when the value of goods and incentive to work are lower, where does that lead us? Do you understand why they call it a deflationary spiral?
   • Embed this notice
     Nicholas Conrad (nicholas@aklp.club)'s status on Friday, 26-Apr-2024 12:08:32 JST Nicholas Conrad

     in reply to

     • Mitch Conner
     • waifu
     Market transactions are inherently deflationary. You don't really have to do anything beyond stop screwing with the money supply. I would recommend acommodity-backed currency, but the fed could target deflation starting tomorrow just as easily as they target inflation now.