What if the banks close?

Has the probability ever arisen that the federal reserve or to a much greater consequence non-central banks would simply stop giving out loans if a new economic system were implemented that made it so for them to continue giving loans did not benefit them in a way that was satisfactory? With so much talk of democratization of the workplace, shouldn't this and must this also apply to the money creation process? (If workplace democratization occurs on a large scale)

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  • commented 2016-11-22 01:45:51 -0500
    thank you. It is really amazing to step back and see how things are so broken by design.
    I feel sometimes like not foraging is the mistake that we all make.
  • commented 2016-11-16 18:28:31 -0500
    if you put a 50k credit card in the hands of every single Chinese or where ever and let them borrow 10,000s to buy cars, ect like we do, causing car dealers to import 100 times more cars, employee 100000s of more ppl, construction would boom, and ppl’s incomes would increase dramatically and even if their incomes don’t all raise in time, just do what the us does. Bail the banks out, and do it again…..and in less than 10 years every nation on earth’s gdp would be north of a trillion….so simpow…With out a car loan in north am car sales would drop by 90 percent in a year….and also start lending money at the same 5% down bullshit as we do in North Am and lend 100,000 billions in mortgages, the housing market of every nation on earth would boom and go up in value like they create boom and busts in north am immediately, construction would boom jobs, ect ect……why doesn’t mexico do this..
  • commented 2016-11-16 18:22:21 -0500
    and what exactly prevents 3rd world nations from following the exact same model as north America, namely lend money into existence, lend it to ppl at zero and let them buy stuff homes cars ect and create jobs employment and generate revenue…why cant they do the same thing and through the same system increase the size of their economy by a factor of 10 in a year or less???
  • commented 2016-11-16 18:20:07 -0500
    the banking system is a joke and many nations on the planet actually spend only the money they earn and also save some as well. as opposed to borrow at low rates, purchase stuff with the debt which is what truly creates demand and causes inflation.. Without borrowing money most ppl in North Am with their savings would at best be able to purchase a rick shaw as opposed to a car. We have a negative savings rate or 2 percent, ppl who earn 1/4 of us in Asia have a 30 to 40 percent savings rate and it’s not because they are smarter, its because everything costs 10 times more here so our most have less money each month than they have month, and borrow to subsidize the short fall, not because its sexy and fun to use a credit card with a 19 percent interest rate when banks pay .35 percent on deposits! No wonder ppl in north am are so stressed and getting all kinds of stress related diseases left right centre…Earning 70k gross or 47 k net a year means nothing when groceries cost 10k per year and rent costs 25k a year, transport costs 5k, health costs 5k and you have not had any outings or fun and are left with 2k to service debt…A somolian or chinese is better off and way richer earning 10k a year in Somalia or China than is a north am earning 70 gross or 47 net. per capita gdp is a useless figure..
  • published this page in Ask Prof. Wolff 2016-11-15 02:46:14 -0500


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