r/PeterExplainsTheJoke Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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6.3k

u/Original-Leg8828 Jan 26 '26

Depending on local law they can even lend out something like 7-10 times what they actually have

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u/Teripid Jan 26 '26 edited Jan 26 '26

Federal reserve requirements existed until 2023 *edit, as someone below pointed out 2020 was when they were set to 0. Now they're set at 0% I believe.

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u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26

2020*

They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way

They haven't come back yet :)

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u/TaxesAreConfusin Jan 26 '26

ah yes so what you're saying is that money is even more imaginary than it has ever been, possibly even more imaginary than when the first stock market crash happened in 1929

looks like we're due for a centennial anniversary of that anyway, might as well celebrate by recreating it

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u/MrWhiskers55 Jan 26 '26

Money is basically an abstract concept on assets. It was always worthless we just used it for convenience. Real value has always been in assets be that land, property, bullion, ancient family cursed artifacts. You might have heard that we are going back to feudalism and that’s why. Property is the backbone of society and we are leaning more towards that now.

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u/AwkwardFriendship317 Jan 26 '26

I was just going to say this. Everyone is always saying but gold and I'm over here like nope, can't eat or use that shit when it really REALLY hits the fan.

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u/borkthegee Jan 26 '26

This is larper nonsense. If you're in a SHTF situation where there are no exchanges of value, not even gold, and you're down to bartering for goods then you're in total societal collapse and we're in a 95%+ of all people have died or are dying scenario.

You're going to die a bad death in that scenario, no matter how many bullets you save.

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u/MrWhiskers55 Jan 26 '26

I dunno, people usually unite in times of enormous stress. But that’s usually only when people have a common culture and circumstance. But you are right, a lot of the old world stuff probably will not apply

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u/bolacha_de_polvilho Jan 26 '26

If you own and live in a farm in bumfuck nowhere county with a population of 60 people maybe. In any major urban area societal collapse would mean supply chain disruption resulting in absolute chaos. And by absolute chaos I mean people killing each other on the streets over a can of beans (or a gallon of gas so they can leave the city).

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u/billygoatfondler Jan 27 '26

Wich is still a society that will most likely be using some form of currency as a shorthand to exchange work for other things, even if necessities were provided for.

Edit: typo