Money out of Air

[jimwell]

I had a quick conversation with chatGPT just a few minutes ago about how money is created. I had been wondering about the answer to the question for a decade but had never done any serious research on it. 

After exercising, the question suddenly crossed my mind, hence I asked chatGPT about it because I knew I wouldn't need to do serious research , the AI would do it for me. 

My instinctive reaction was money creation is mambo jumbo and corrupt. I don't have time to contemplate why it must be this way. If there's somebody out there who has good insights, please share them here.

 

 

 

 

Edited February 24, 2023 by jimwell
unfucked my grammar

[Gesundheit2]

That's not how money is created. It's just how banks work.

[aurum]

@jimwell Yes, ChatGpT is correct. That is a basic explanation of how money comes into existence. Obviously more complicated explanations are also possible.

Ecological economists and degrowth scholars are often concerned about this progress because they argue it creates “a growth imperative”. In other words, the need for the economy to grow is baked in to the monetary system itself. It creates a situation where debt always outstrips the money supply.

If there is corruption in this system, I’d argue this is at least one of the places to look. We know what the benefits of economic growth are, but what are its costs?

Here is a good talk by Jim Rutt on the subject:

Note: I am not necessarily endorsing his solution of Dividend Money. I am skeptical that will work. But his analysis of the problem with the current system is pretty good.

5 hours ago, Gesundheit2 said:

That's not how money is created. It's just how banks work.

It is both.

[jimwell]

On 2/25/2023 at 6:19 AM, aurum said:

Here is a good talk by Jim Rutt on the subject:

Note: I am not necessarily endorsing his solution of Dividend Money. I am skeptical that will work. But his analysis of the problem with the current system is pretty good.

Yes, his analysis of the current monetary system is good. I wonder whether his proposed solution is really possible to implement on a global scale. 

Fractional Reserve Banking is actually not as bad as I thought because when the loan is paid, the money created from air is destroyed. But if you look at it as a whole, it is still shitty. Only humans who already have wealth can have access to loans. The humans who are starving or at least living paycheck to paycheck don't have access to such loans. This current monetary system matches well with capitalism. Both systems propagate a horrible pyramid scheme. The few humans at the top win big time and are perversely perceived as role models. The many humans at the bottom have their bodies and souls crushed and are treated as garbage. This form of shit makes me wish I was born 5 centuries after I was born (1980s).

 

 

 

[Arthogaan]

I thought it will be a post about Law of Attraction