11 hours ago
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"the Bank of Japan found that despite lowering short-term interest rates to zero it could not get its zombie banking sector to lend. Credit, the life blood of our fractional reserve banking system, was just not increasing. Therefore, the Bank of Japan began buying Japanese government bonds (JGBs) with money that it created out of thin air — that is they bought existing assets with money that did not previously exist. Central Banks can do this because they control the electronic printing presses. Now, the likes of Murray Rothbard, an Austrian School economists calls this counterfeiting. However, regardless of how you see this, this is how our monetary system works." - Hayk
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