Everyone who has a mortgage or other loan from a financial institution is contributing to an increase in the money supply and thus inflation, so shut the f*** up about costs increasing; it's your fault too. amirite?

+86 Everyone who has a mortgage or other loan from a financial institution is contributing to an increase in the money supply and thus inflation, so shut the f*** up about costs increasing; it's your fault too. amirite?

by german03 2 days ago

No? That is not how any of that works, they have money they can lend out, and then they ask you to pay it back with interest, money aren't just being made out of thin air, that is just not how this works.

by Anonymous 2 days ago

Where does that money come from? They just have cash laying around to lend out? The principle it works on is that they're loaning out other depositors' money, but their accounts aren't debited. Every depositor, in theory, still has access to all the money in their account and now I have access to X amount too, to buy a house. It works on the idea that everyone will not access their money at the same time.

by german03 2 days ago

Okay fair enough, but what OP said is still wrong, they talk about it like the money is kept even after it's paid, but that money isn't permanent.

by Anonymous 2 days ago

Well... what do you think the crisis of 2008 was? Those loans were not kept by the bank, they were sold on the market. The banks make money off the creation on the loan and the interest payments, but that's it.

by CauseKooky5202 2 days ago

Fair enough, but the financial system of the US has seismic waves that aren't limited to the US. That said, in essence, nothing changed since them.

by CauseKooky5202 2 days ago

No, that's not how that works. lending does increase the money supply. However, when you repay the loan, that money is destroyed. so the process is temporary.

by After_Vacation2707 2 days ago

This person doesn't understand money. In any capacity.

by Aprilcarroll 2 days ago

Ah yes. Google AI. Never wrong.

by Aprilcarroll 2 days ago

if youre gonna use sources to back a claim, at least use proper educated ones and not AI

by Repulsive_Big 2 days ago

A certain level of inflation is healthy for sustained growth. Deflation is no fun either in the long term.

by Right-Print 2 days ago

No, that's not correct. Also how else, given the lack of social housing and public transport, are people going to live and work?

by NoPotato 2 days ago

No, that's not correct Which part? The bank creates the money out of thin air when you loan it, that is true.

by CauseKooky5202 2 days ago

... that's not how it works. And even if if were how it worked, people wanting to own the place they live in, wouldn't be the problem but the system... this opinion is insane. Are you high or something?

by Real_Fan_4632 2 days ago

Yes fractional reserve banking is the corrupt system that we all willingly participate in. I never said it was a problem, just that everyone who participates is to blame.

by german03 2 days ago

... you don't blame someone for something that isn't a problem. Definition blame: feel or declare that (someone or something) is responsible for a fault or wrong.

by Real_Fan_4632 2 days ago

Fair enough. You got me

by german03 2 days ago