• InputZero@lemmy.world
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    7 hours ago

    Have you heard of a federal reserve? Yes your bank doesn’t have your money, but someone does. Your money someone else has is insured by the federal reserve so bank runs don’t happen. You’re talking about an economy that existed 100 years ago.

    • Mulligrubs@lemmy.world
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      7 hours ago

      You are so very wrong. The Fed does NOT have the cash, nobody does.

      It exists only in the banking system itself with no tangible assets to back the majority up, we don’t have the actual cash to cover even 10% of deposits.

      Where did you hear “the fed has the money”? Please share how the Fed “has the money” (or anybody else).

      The “insurance” will collapse, just as the banks

      You’re talking about an economy that does not exist. The FED does not have the cash.

      Also, please note the more cash that they do print, the less the dollar is worth… this is called “inflation”.