Lol, I can see that this is going to get juicier and juicier and how the banks basically neglected their requirements of keeping enough assets to cover the loans that were outstanding. I often wonder what the bank examiners were doing? Visions of “It’s a Wonderful Life” keep popping in my brain, and the massive run on the bank. Y’know I think Hollywood should make a movie about this. It’s a Wonderful Life 2008.
I understand what Sal is trying to do: to justify the current fractional reserve banking system. The point why gold should be money is that it takes effort and human energy to extract gold from the ground hence it is precious and cannot be manipulated. While digital dollar can be manufactured by the bank anytime. The point is that banks are enjoying the spread by essentially doing nothing in the money creation process. Now, they try to keep all the profit while socializing the lost.
In fairness to nemnaisa; his got a point and he is trying to critique the bad side of the system. Remember a system is only effective if the rest of its parts are working properly.
Yes, but his solution that we should literally be using physical gold is simply impractical. People would barter with everything if that was the case. It’s the same thing as saying there should be no such thing as currency because to do otherwise is immoral.
But taking a loan is just giving a promisory note (with our signature) in exchange of promisory notes from the bank, aka bank notes. The bank doesn’t have to work to gain those notes. Why should you have to work to repay them? You’re just buying back your promise to pay (the asset security) with other promises to pay (new bank notes) so the bank can discharge the liability on its book. Wether you repay or discharge the liability the bank contracted for your signature, it’s the same.
the bank is acting as a conduit here. As every loan has a depositor and creditor, the “work” the bank does is to manage the risk and pay the depositor.
All I’m saying it that it’s utter nonsense to allow private banks in such a monetary system. They bring nothing to the table and collect all the interests. Even worse, they imply ownership of 96% of the money supply (debt presumably owed to them). Credit should be public and debt-free.
your voice sounds cool
Lol, I can see that this is going to get juicier and juicier and how the banks basically neglected their requirements of keeping enough assets to cover the loans that were outstanding. I often wonder what the bank examiners were doing? Visions of “It’s a Wonderful Life” keep popping in my brain, and the massive run on the bank. Y’know I think Hollywood should make a movie about this. It’s a Wonderful Life 2008.
Whats the maximum the bank can loan out in this vid, assuming money is not redeposited and there is no sort of multipier? cheers
Thanks to the FAILOUT, they are not required to have anything in reserve
I understand what Sal is trying to do: to justify the current fractional reserve banking system. The point why gold should be money is that it takes effort and human energy to extract gold from the ground hence it is precious and cannot be manipulated. While digital dollar can be manufactured by the bank anytime. The point is that banks are enjoying the spread by essentially doing nothing in the money creation process. Now, they try to keep all the profit while socializing the lost.
You obviously have no idea what you are talking about and probably never went to college. Or if you did, you did not pay attention.
In fairness to nemnaisa; his got a point and he is trying to critique the bad side of the system. Remember a system is only effective if the rest of its parts are working properly.
Yes, but his solution that we should literally be using physical gold is simply impractical. People would barter with everything if that was the case. It’s the same thing as saying there should be no such thing as currency because to do otherwise is immoral.
wow u guys r just nerds that read from the book and never studied in real life
But taking a loan is just giving a promisory note (with our signature) in exchange of promisory notes from the bank, aka bank notes. The bank doesn’t have to work to gain those notes. Why should you have to work to repay them? You’re just buying back your promise to pay (the asset security) with other promises to pay (new bank notes) so the bank can discharge the liability on its book. Wether you repay or discharge the liability the bank contracted for your signature, it’s the same.
the bank is acting as a conduit here. As every loan has a depositor and creditor, the “work” the bank does is to manage the risk and pay the depositor.
All I’m saying it that it’s utter nonsense to allow private banks in such a monetary system. They bring nothing to the table and collect all the interests. Even worse, they imply ownership of 96% of the money supply (debt presumably owed to them). Credit should be public and debt-free.