Quote from: Zarathustra on January 24, 2016, 12:57:18 PM

Quote from: franky1 on January 23, 2016, 09:16:39 PM

Quote from: Zarathustra on January 23, 2016, 08:52:37 PM

FIAT Money is debt/credit, and debt/credit is backed by deposits. I can't get credit out of hot air.

you can..

you do know that credit is a credit agreement.. the primary way banks "create money"..

you do realise that its not money movement from one account to another to give you credit.. the banks magic the money out of nowhere and you sign a credit card contract to hand them funds + a fee..

same goes for mortgages. the funds dont come from other peoples accounts.

when you realise that its created by nothing more then laws allowing them to create it under the use of credit agreements .. you will see that fiat is only backed by laws..

It's not created by nothing. It's created against a deposit (House, machines, salary etc.) Money is not a thing. Money is debt/credit.

its not created against a deposit.. seriously you are missing out lesson one of fiat money creation..
here.. straight from the bank of england website
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

a bank deposits NEW money into a persons account.. it doesnt shift money from someone elses account .. it creates a new balance.. out of no where, based on credit agreements.

being brutally honest.. miners do the same thing. a new 25btc is created on the agreement of a block creation. just like banks create money on a credit agreement.
but banks agreement is not controlled supply.. they can create any amount they like by accepting more and more agreements. with no time or value limit.. which is what ultimately caused the 2008 financial crises because they made bad agreements (sub-prime loans) literally creating money without concern or control or rules to mathematically create money at a stable and predictable amount.