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Unannounced to most people at least it didn't get a lot of press attention the federal reserve reduced the fractional banking requirement to zero in march of 2020. this means that a bank no longer has to have any percentage of deposit amounts in their bank or claimed in their bank in order to loan money out. they used to have to say have 1% or some percent of the total outstanding loans they had as actual deposits in their bank but now they can loan as much money as they want without any requirement of any actual deposits

Unannounced to most people at least it didn't get a lot of press attention the federal reserve reduced the fractional banking requirement to zero in march of 2020. this means that a bank no longer has to have any percentage of deposit amounts in their bank or claimed in their bank in order to loan money out. they used to have to say have 1% or some percent of the total outstanding loans they had as actual deposits in their bank but now they can loan as much money as they want without any requirement of any actual deposits

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[–] • 3 pts

Exactly. And I imagine that is exactly how many bankers are doing it. Not only that but it allows them to get leans against billions of dollars of property as they issue infinite amounts of loans to people if they default later

[–] • 3 pts

Precisely. $1 is more than the Federal Reserve started with so there's is already precedence for such a thing.