Is the current banking system still a good one?

The banking system is important for financing the economy, but it is a remarkable public-private institution. Should you separate the public function of payment transactions — receiving salaries and being able to pay bills and groceries — from commercial, risky banks.” Just like we did with energy transport: there, we also moved the management of the networks away from the companies that generate and supply the energy and placed them in government hands. Banks won't want that, after all, a bank account is a nice way for customers to earn money and sell other products, ie sell them.

Bankers are alchemists who create money out of thin air The general idea is that savers bring their money to the bank and that banks then lend this savings deposit at a higher rate. The truth is that banks don't need your savings to lend at all.

The evolution of our money system based on gold and silver coins into trust-based fiat money brought about major changes. Not only with regard to payment transactions and the role of banks, but also in how governments deal with money. It has given governments more space to incur debts and erode the value of the money. How does our financial system work why is it doomed to fail and how can you keep yourself out of the storm?

Things have to be different: that you must be able to go to a government agency to receive your salary and make payments, as before, without much interest and with little risk. And for a risky loan, you can then come to a commercial bank.

Digital Currency A possible role can be played by the central bank (cbcd), which is currently being discussed at central banks. Customers would then be guaranteed credit from the central bank and be able to make payments. What would be the weaknesses of that system?” Different views on Digital Currency