According to you, what's the purpose of banks?

becouse lending means you have saved samething which you can than land out

banks do not have saved samething they creat samething thats an completly other thing

banks creat money and destroy money when credits are liquidated

Ah, ok

while how much they can create and in which rules is different from countrys

That makes sense

So what is the main purpose of banks? To keep putting money into the system?

well it depends who you ask. if they would not be privat i would say to guranty the right amount of money is in the sysem which does not couse high inflation or deflation rates

but well banks are privat which brings them to make as much money

which results in giving credits with the most return of invest

the return of invest are the interest rates

I see

while you also have the risk of if the other party can not pay back you actualy make a lose

I have some more questions, just wait for some time. Gtg

in all the economics debates i am missing that simple point

> the return of invest are the interest rates
@hororizon44575 so if banks print a lot of money, the interest rates increase.
Is this what the current problem is?

@hororizon44575

wait

to give a credit you also need sameone who wants the credit

Ok

in deflation bank will tend to not give credits becouse giving credit if nnoone buys means higher risk

but in inflation its the oppesit giving credit at low risk

(thats why i also think poeple who say just let it solve by free markets should check there brains)

What is "it"?

What do you want to solve..

in inflation people tend to buy more

Okay

thats the it

How is that a problem?

It will increase demand right .

it will incrase demand and money in the system which will increase inflation which will increase demand which will increase...

And the bubble bursts?

Like in 2008?

yeah kind of

and banks who coused it are labeled system relevant

But you can increase demand without increasing inflation right?
Just give people more jobs and their salaries will increase

I.e. improve your country

Make more factories

Education etc

well yes more money can also mean more jobs in this case you have prodcut you can uy with the more money