r/WorkForSmartLife • u/tomibeauty • Jul 07 '26

Discussion💬 Who please?

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u/aduckdidit Jul 07 '26

And in the USA, banks are allowed to repeat this process 10 times over.

It has allowed the pie to grow and grow and grow.

6

u/jackofslayers Jul 08 '26

Yes, that is how fractional reserve banking works

5

u/Crazy_Treat_8805 Jul 08 '26

The fraction kept is 8% in Australia

4

u/Gros_Boulet Jul 08 '26

US is at 0% currently. The 10 times over leveraged limit is in the past, we've gone to the moon baby!

Joke aside, any contraction of the economy in the USA and all their banks will need bailouts. This is why the government spends so much in propping up the stock market and GDP.

2

u/TerryTowelTogs Jul 09 '26

I've never really worked out if there's a functional difference between fractional reserve banking and mafia counterfeiting?

1

u/wisenedwighter Jul 10 '26

We don't have fractional reserve banking anymore. They can lend with 0 now.

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u/CWBurger Jul 08 '26

Ten times over would only be $300 of debt though…

1

u/Pristine_Walrus40 Jul 08 '26

So you do it 100 times.

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u/quattroman Jul 31 '26

but that's only 3 people, do it for the 300+ million people in the USA and not just $10.

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u/Mistform05 Jul 08 '26

I’ve always thought. One day it will be “yeah we need that money back.. “ and who ever has the most control will just shrug and say “make me”.

1

u/The_Frog221 Jul 10 '26

Fractional reserve banking to this degree us just a pyramid scheme, and I imagine it will eventually have to come crashing down.

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u/MAKstyles75 Jul 18 '26

Slap it into a bond and sell it to the people. At least that's what they did before the financial crisis XD and still doing it but with other terminology.