Valuetainment “Banks Can Lend With 0%” - Banking System EXPOSED For Creating Fake Money & Asset Bubbles
Apr 2, 2026
Richard Werner, economist known for research on bank lending and money creation. He breaks down three lending types and how asset loans inflate property and financial bubbles. He links consumer credit to price inflation and champions targeted lending to small firms as the route to real growth. He also critiques reserve and intermediation models and suggests banks focused on business investment.
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Asset Lending Creates Money Without Real Growth
- Banks create credit by lending for asset purchases which expands money but does not add real economic value.
- Richard Werner explains asset lending to real estate, hedge funds and private equity fuels price booms and unsustainable bubbles.
Consumption Lending Directly Pushes Consumer Inflation
- Credit for consumer spending raises purchasing power but not goods, driving consumer price inflation.
- Werner cites 2020 as an example where consumption-focused credit expansion produced inflationary pressure.
Reserve Requirements Were Reduced To Zero
- Reserve requirements shifted from 10% pre-2020 to effectively zero, enabling banks to expand lending without traditional reserves.
- Patrick Bet-David highlights this change as how authorities implemented QE 'without QE' in 2020.