"If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln
Post subject: Re: Another 'I dont understand the banking system' Thread
Posted: Sat Nov 26, 2011 1:18 pm
SBR
International Board Member
Joined: Aug 12 2002 Posts: 5064 Location: Not Didcot
LeighGionaire wrote:Two reasons -
1) Reserve requirement - there is supposedly a ceiling on how much money they can create depending upon the amount of deposit money they have.
2) They need a borrower's signature to create the money.
No, it's because they have to front up the money 'cos they can't create it. Banks create liquidity not money. Part of the problems at the moment steam not from a lack of money in the economy (there's actually more money as governments, who can create money, have created it) but a lack of liquidity from banks not lending.
(23:25:06) Thecko: who'd want to rent a book? (23:25:10) Thecko: oh, libraries
Post subject: Re: Another 'I dont understand the banking system' Thread
Posted: Sat Nov 26, 2011 4:56 pm
Dally
International Chairman
Joined: Dec 22 2001 Posts: 14845
handrags wrote:if that where true wouldnt house prices be at rock bottom ? and if you do default on your morgage the bank would own your house [ still a valuble asset], Yet the yanks owe trillions, and yanks rent property as do most europeans so thats not the simple answer.
Look at property prices in Detroit if you don't think they are rock bottom. In this country all BoE and government policy is aimed at keeping property prices artificially high.
handrags wrote:if that where true wouldnt house prices be at rock bottom ? and if you do default on your morgage the bank would own your house [ still a valuble asset], Yet the yanks owe trillions, and yanks rent property as do most europeans so thats not the simple answer.
Look at property prices in Detroit if you don't think they are rock bottom. In this country all BoE and government policy is aimed at keeping property prices artificially high.
Post subject: Re: Another 'I dont understand the banking system' Thread
Posted: Sat Nov 26, 2011 5:21 pm
cod'ead
International Chairman
Joined: May 25 2002 Posts: 37704 Location: Zummerzet, where the zoider apples grow
Dally wrote:Look at property prices in Detroit
Nice pick.
Have you ever been to Detroit?
The older I get, the better I was
Advice is what we seek when we already know the answer - but wish we didn't
I'd rather have a full bottle in front of me than a full-frontal lobotomy ------------------------------------------------------------------------------------------------------------ kirkstaller wrote: "All DNA shows is that we have a common creator."
cod'ead wrote: "I have just snotted weissbier all over my keyboard & screen"
------------------------------------------------------------------------------------------------------------ "No amount of cajolery, and no attempts at ethical or social seduction, can eradicate from my heart a deep burning hatred for the Tory Party. So far as I am concerned they are lower than vermin." - Aneurin Bevan
Post subject: Re: Another 'I dont understand the banking system' Thread
Posted: Tue Dec 13, 2011 7:42 pm
LeighGionaire
International Board Member
Joined: Feb 20 2002 Posts: 1437 Location: Leigh, where else?
SBR wrote:
LeighGionaire wrote:Two reasons -
1) Reserve requirement - there is supposedly a ceiling on how much money they can create depending upon the amount of deposit money they have.
2) They need a borrower's signature to create the money.
No, it's because they have to front up the money 'cos they can't create it. Banks create liquidity not money. Part of the problems at the moment steam not from a lack of money in the economy (there's actually more money as governments, who can create money, have created it) but a lack of liquidity from banks not lending.
I've shown you many examples of people stating that banks do indeed create money yet you still refuse to accept it as fact, why is that? What makes you dismiss official bank literature and economists comments that explain that banks can and do inflate the money supply?
Here's another one, Detlev Schlichter an 'Economist who has worked in finance for 20 years including stints at Meryll Lynch and J.P Morgan', talking on The Kaiser Report 13.25 minutes in -
1) Reserve requirement - there is supposedly a ceiling on how much money they can create depending upon the amount of deposit money they have.
2) They need a borrower's signature to create the money.
No, it's because they have to front up the money 'cos they can't create it. Banks create liquidity not money. Part of the problems at the moment steam not from a lack of money in the economy (there's actually more money as governments, who can create money, have created it) but a lack of liquidity from banks not lending.
I've shown you many examples of people stating that banks do indeed create money yet you still refuse to accept it as fact, why is that? What makes you dismiss official bank literature and economists comments that explain that banks can and do inflate the money supply?
Here's another one, Detlev Schlichter an 'Economist who has worked in finance for 20 years including stints at Meryll Lynch and J.P Morgan', talking on The Kaiser Report 13.25 minutes in -
"If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln
"If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln
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