Do Banks Create Money out of Thin Air?

What? Now you think the earth is flat???????

 

Glad to see you know that

A sandwich is a description. It is a description of two pieces of bread and a piece of meat. You physically created the sandwich, but you didn't create it out of thin air, since the pieces of the sandwich already existed. All you did was put them together and call it a sandwich. It did not just appear in to existence. Unlike money, which is a mental concept of people accepting it.

 

Leveraging takes things beyond this though.

 

I can see you are in full troll mode

 

Boy does that sum it up.

 

LOL, I couldn't resist.

 

LOL!!! I love how arrogant and stubborn you come off and you are still 100% wrong. Collateral is used as an accepted form of repayment in case you default on a loan. It does not back the money that has been created. It backs the promise of repayment. The collateral did not create the money. The money was simply created by the bank by typing digits in to a computer.

LOL!! I have never seen so much craziness out of such a simple concept. My 5 year old nephew understands how banks create money out of thin air!!

 

Why would you think I wouldn't. I'm the one who created the concept of the sandwich and made the non-existing sandwich I had for lunch.

I would never say I created the sandwich out of thin air.

However, based on *your* own definition of the term: "Creating something out of thin air means to make in to existence something that didn't exist before."

I certainly did create my sandwich out of thin air.

So let's argue 8 more pages about how I created the concept of sandwiches that don't exist.

 

"LOL!!"ing from someone who claims I created the concept of the sandwich and that sandwiches don't exist.

LOL

 

You can alway spot when someone is speaking out of their a$$, they are very quick to throw insults around.

 

I wonder if his 5 year old nephew would say I created the concept of the sandwich, but sandwiches do not actually exist?

 

Always?

"Can a food become a sandwich simply by calling itself a sandwich? Does an open-faced sandwich constitute a sandwich, despite the lack of sandwiching employed in its construction? If so, is bruschetta a sandwich? Buttered toast? Pizza?

What if you fold the pizza in half? Must the unifying exterior item be split in two in order to constitute a sandwich? Is a hot dog a sandwich? A submarine roll split in the middle, but with a hinge still hanging on? Is an omelete a sandwich?

A note on methodology: Is it necessary to consume the sandwich with one’s own two hands? If one were to douse a sandwich in gravy, would it neutralize the sandwich, converting it into nothing more than a bread-based entree?

If we’ll accept a hinge in a sandwich, what about a filling that’s encased on two sides? On all sides? Is a kolache a sandwich? A pasty? A corn dog? A calzone? An egg roll? A dumpling? A pop tart? Is a wrap a sandwich?

Is a burrito a sandwich?"(*)​

Those carbon smears become money when enough folks agree they are money. A stack of meat becomes a sandwich the same way.

 

A sandwich did exist before. It was just not assembled. All a sandwich is, is a description. You can't "create" a sandwich... you can make a sandwich by slabbing some meat and cheese in between some bread. You didn't create anything.

You can lay out two pieces of bread some meat and some cheese and you have the ingredients for a sandwich. The sandwich already exists. When you put those pieces together you didn't create anything that didn't exist before. You put them together and you call it a sandwich.

 

If a sandwich gets eaten in the forest when no one is around, does it really actually exist?

heh heh

 

Lol!! Coming from you, that is hilarious.

It's obvious that banks create money from thin air. That is something that people realized centuries ago. The fact you guys think because a bank has a limit on how much money it can create negates the fact that money is simply created out of thin air, is equally hilarious!

 

LOL Iriemon.

I can't believe how you have him tied up in knots over a sandwich.

 

What's funny is you think I'm tied up in knots over a sandwich. This is a very simple concept. I think Iriemon is simply grasping at straws because he knows he was wrong about banks creating money out of thin air.

Those morons argued with me for 100+ pages about banks not creating money from thin air. That is one of the most simplest concepts there is. People really should get educated... they are embarrassing themselves in this thread.

 

To be or not to be, tis the question, I ask my sandwich, and thee.

 

Really??? Please show me where I have ever thrown insults your way.

The money supply is limited based on the assets that the Central Bank has purchased.

http://en.wikipedia.org/wiki/Money_creation

I normally dislike using wiki for a source, but you will read the same thing in a book called Macroeconomics by N. Gregory Mankiw.

Yes, there is a limit to the amount of money available for loans. It is not an bottomless bucket.

 

It is a very simple concept which you have plainly explained for us.

Sandwiches are non-existant things of which I created the concept.

 

Like when we construct a building from wood or metal? Or a poem by putting together pre-existing words; or a new drug for cancer by assembling carbon, nitrogen, oxygen, and hydrogen atoms; or software by putting together known ascii characters; or a contract by organizing pre-existing legal concepts... hm.

All the sandwiches that will ever exist, exist now. We must just find them and put them together. Truly a humbling way of looking at the culinary arts.

 

Yes. Zimbabwe banks do print money off the Xerox. Thread closed.

 

But to they make sandwiches or just create the concept of sandwiches there?

 

Yes, there is an arbitrary limit to how much money a bank can create. That doesn't mean they don't create money out of thin air! We have gone over this. This is very simple stuff bro. Let me know if you want me to draw you a picture so you can better understand.

 

No one makes sandwiches... like all great art, they are only discovered!