[jml78]

The issue I don’t see talked about is the removal of the reserve requirements for banks during Covid. They did that for liquidity reasons.

However that allows bank A to loan 100% of their money to bank B and 100% to bank C.

This is extremely problematic. And now with bank failures they are too scared to put it back in place.

Just this concept alone creates huge inflation.

[rocqua]

Banks still have a required capital ratio. Covid slackened that a little bit, but banks very much still have reserve requirements.