Re: Credit doesn't exist?!?


DarkProtoman wrote:
What does this mean and how is it even possible:
I read some article on wikipedia about a guy saying, essential, that
banks are commiting legalized fraud, and the money to fund their loans
is created out of thin air. I forgot the link to it, so could you post
the link? Thanks!!!

A fraud, by definition, is an illegal act. Therefore the phrase
"legalized fraud" makes no sense whatsoever.

And yes, money is "created out of thin air". Basically central banks
authorize commercial banks to open new credit accounts for clients, and
assign to those accounts certain amount of money, which does not exist
in physical form, nor is backed by gold. There's nothing wrong with
this; central banks and commercial banks keep tabs on their computers
on how much money everybody has in their accounts. There's no fraud
behind it. What you are reading are brainless consipracy theories from
people who are absolutely clueless about economic matters.

.

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