Much ignored is education on banking. Here, I will present concepts that explain why zero reserve has caused inflation.

In 2020, reserve requirement was removed, replacing it with a system where the federal reserve pays banks to hold reserves. Consequently, banks will loan all deposits so long as they make more than the federal reserve pays on deposits.

Banks benefit immediately from loans by selling them to federal agencies. This translates to the following scenario:

And so, banks are incentivized to make as many loans as possible, so long as federal agencies will buy them. Then, on the sale of those loans to federal agencies, the banks repurchase those securities and earn an interest on them.

This has the effect of pushing all prices up, particularly the assets directly affected by the loans such as real estate.

This is just one way banks profit from the current system. They also benefit from purchasing treasuries and fueling an inflating system.

There is a fundamental issues here about the construction of society, but perhaps I will address it some other time.