• The Fiat Standard

  Fiat Mining

  Posted by riechersm on June 8, 2022 at 00:19

  When a client takes out a $1 million loan to buy a house, the lending bank
  does not take a preexisting mature $1 million present in its cash reserves, or
  from a depositor’s balance at the bank. It will simply issue the loan and create
  the dollars that are used to pay the seller of the house. These dollars did not
  exist before the loan was issued. Their existence is predicated on the borrower
  fulfilling their end of the bargain and making regular payments in the future.

  
  

  This does not seem possible, the inflation would be unreal, surely higher than 10% a year. How can I confirm the truth of this?

  
  

  
  

  riechersm replied 1 year, 10 months ago 1 Member · 0 Replies
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