Q1: Does this financial system work?
A1: it works for the private banks, at least for a while, but it does not work for the rest of the world.
Q2: How just is this financial system?
A2: no not at all, just read this:
“During the COVID pandemic the interestrate on TLTRO III was lowered to -1% , which means that the ECB pays banks 1% of the value of their loan every year. This generous support has continued until the coronavirus hit and then strongly increased (see Figure 1).”
Which means: if you are a bank, you even get paid by the central bank, for taking a loan.
“PLEASE! TAKE AS MUCH MONEY AS YOU WANT! WE WILL EVEN PAY YOU FOR IT!”
If someone with ideas, walks into a bank to request a loan, they will laugh at you.
The “Big” (downward) “Hit” came after 2008.
So are those low interest rates just “fresh blood” for a zombie (the current financial system) to survive a bit longer?
Has the financial system actually collapsed in 2008 and not recovered since?
Why don’t do banks their job?
The job of a bank is to: actively (!) look and engage and foster and support entrepreneurs to finance new ideas, products, jobs…
not: take the freshly printed money and put it into the stock market casino.
Then there would be no “inflation” problem.
Btw: the “independent” central banks failed at their core job: to not do, what “experts” feared the state would do with the privilege of money printing:
print as much money as you like and cause massive dysfunctional financial system and inflation