I made a post earlier detailing the mechanism they use to extract the wealth from us: https://news.ycombinator.com/item?id=42621878
Instead I am saving in a money with fixed issuance, that people can't just print out of thin air. It's proof of work, like gold, but digital and with a capped supply.
If you don't understand, I'm afraid I don't have the time to explain it to you.
what is the alternative exactly? money created by god?
like no duh the economy & money system was created out of thin air. we created all this shit out of thin air.
created by putting in work of equal value, you know, like that one form of money that has lasted for millenia, as opposed to these fiat tokens that always fail.
> like no duh the economy & money system was created out of thin air. we created all this shit out of thin air.
One side of the economy was created out of thin air - the money. The other half - goods and services - were created through work. Sound like a fair system? Or a con trick?
Keep working for the tokens dude, and the banks will keep creating them out of thin air until you realise what they're doing.
So what's your alternative? Refuse to work unless you're paid in gold? Refuse to work and go on welfare? Refuse to work or eat? Become a banker and print your own tokens? What?
What banking system doesn't do this?
Ones with steps in between don't count.
Brazil's banking system prints reals out of thin air. But that's better, because they're real, says so in the name :)
This is also nonsense, though less so.
Money is created by private banks through lending. The government gets a cut, but that comes through taxation. Money creation is complicated, but it seems like every year someone watches a YouTube video about inflation and deduces, with zero further thought, that it must be a conspiracy.
Exactly. Every single dollar was created from thin air, as a "loan".
> it seems like every year someone watches a YouTube video about inflation and deduces, with zero further thought, that it must be a conspiracy.
I've been studying and researching this for years.
Not quite. Minted currency isn’t created from a loan. Neither is fiscal spending.
On the other side of the spectrum, money is destroyed through taxation (by the state) and repayment of debts and defaults (privately).
The monetary hypothesis of income inequality is overly simplistic. It supposes our tax, trade and funding policies are all dictated by monetary policy, which is obviously nonsense. (That or our tax, trade and social spending policies have no effect on inequality. Which is obviously stupid.)
It is an easily-digested hypothesis. We like those, particularly when the alternative is reading lots of arcane monetary financial texts.
Monetarily speaking, the government creates the money when it spends it. The loan then (and optionally) removes a similar amount of money from the system.
This is an enormous power, so we try to legally limit the government in how it can do this. (If we removed the Fed's independence and put it under the Treasury, the Treasury could just add numbers to the bank accounts of the government's employees and vendors. This is analogous to its minting power. We separate the Treasury and the Fed in part to fracture this power.)
I forgot one more creation/destruction mechanism above: the Fed's open-market operations. When the Fed buys assets, it creates money. When it sells them, it destroys money.