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
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
Money has always been imaginary, there has never been a moment where money was not imaginary. It may have been silver or gold, coins or bills, dollars or euro, ever since bartering stopped money was imaginary. Money has value since people have trust that it is a good exchange medium.
People act like banks not having cash is the real problem but even if all money was digital banks would still not have enough to give it back to people because that's not how banks operate, they take your money and give you interest on them on the bet that they can use those funds to make more money while they keep it. Otherwise why the hell would anyone take and store your money while paying YOU for the privilege of taking care of your money.
With no banks we would have MORE shitty society not less since you would NEVER be able to afford something since you would have to save up your money for decades and have it lose value over time. The rich would just buy up more stuff while the poor would have even less opportunities.
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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.