A banker should not be a man who gives out loans, but one that connects capital owners to those who need to borrow him. That would mean the end of reserve banking.
Karol II. frightened of civil war, he decided in 1666 and gave control of making money in private hands. A few years later, the Bank of England was established and there was modern banking in the world.
Most of the money exists in the form of loans, not cash
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Since banks can give out loans that are covered only by minimum cash (reserves), there is no limit on the amount of loans provided. The economy is dependent on bubbles of excessive debt.
Paradoxically, however, the power of banks themselves grew with the magnitude of devastating credit crises. And at the end of the last century it was commercial banks that practically determined the rules. And this until the collapse of 2008, when little real capital proved to be worth trillion dollars.
This has prompted several institutions, such as the IMF, to seek better alternatives.
Many of them ended up returning to the original principle of banking – to protect and mediate capital. A banker should not be a man who gives out loans, but one that connects capital owners to those who need to borrow him. That would mean the end of reserve banking.
The only real solution seems to be that everyone can make money. To create a money market where only the most trusted forms survive. Because only where there is a market is there a struggle for survival, so only there is progress.