Guevarista wrote:
What books do I have an obsession with in your opinion?
The authoritarian left.
You described the problem being the apples were abundant, and nobody had any left because they put them all in the bank, i don't really get your reasoning how does the fact the bank loan out "more money than they have on deposit" lead to that situation in your opinion?
By producing too much money you cause inflation, yet all that extra money remains for the most part with 1% of the population.
Wages have not kept pace with inflation since wub's graph which illustrated it earlier in the thread, western life basically peaked in the 50,60 and 70's.
From then on its been gradual decline and then massive decline from 2007 with the bank failures and scams foloowed by bailout paid for by the already poor taxpayers who have nothing left.
It is planned destruction. The bankers knew all too well that the present times would come.
Their business fails and then all of a sudden capitalism is no longer relevant. If it was then they'd be broke instead of us.
A basic critique of the fractional system, current economic literature, Neo-Classical economists or even some of Bernanke's or Greenspan's writings would help, just a run down of your interpretation of Fractional reserve banking would be a start then maybe I would get what your point is.
Bernanke's or Greenspans WRITINGS? Why writing?
They have said openly to the face of the US govt that they will NOT disclose where the bailout money has gone.
Do you want to see the video?
Do you want to see the fed being asked where trillions have gone totally unaccounted with no responsibility for it?
Do you want to see Ron Paul asking how you solve a debt problem with more debt?
Surely you have seen these videos they have been repeated ad verbatim all over the internet on DIF and here too for starters.
The reality as it stands is that for the most part the world has never been so wealthy as we have been since the advent of Fractional Reserve banking, you could say class antagonisms have increased, inequality has increased, but overall and on a global scale there has never been so much wealth so readily available.
How is debt wealth?
How is more than half the population of the planet living on less than a dollar a day with no means to sustain themselves naturally as they did in the past without war and conflict MORE wealth?
See what I mean about really epcially dumb statements from people lately?
How is 1% of the population with 90% of the wealth MORE wealth?
MORE wealth for them yes, sure as hell yes. You talk of the bourgeoise and here you are saying there's more wealth than ever!!
LMFAO!!
this is nothing about me getting my head around Fractional Reserve banking it's more getting my head around this reactionary conspiracy theory around it.
What reactionary conspiracy theory?
Its REAL, its recorded, its documented , its in your fucking face lol...
It would be cleared up if you formulated an actual critique instead of just expecting people to agree Fractional banking is bad based on the slogan "it loans more money than there actually is deposited", which is not really accurate imo:
the initial deposit is lent out 10 times with a fractional-reserve rate of 20% to ultimately create $500 of commercial bank money. Each successive bank involved in this process creates new commercial bank money on a diminishing portion of the original deposit of central bank money. This is because banks only lend out a portion of the central bank money deposited, in order to fulfill reserve requirements and to ensure that they always have enough reserves on hand to meet normal transaction demands.
The relending model begins when an initial $100 deposit of central bank money is made into Bank A. Bank A takes 20 percent of it, or $20, and sets it aside as reserves, and then loans out the remaining 80 percent, or $80. At this point, the money supply actually totals $180, not $100, because the bank has loaned out $80 of the central bank money, kept $20 of central bank money in reserve (not part of the money supply), and substituted a newly created $100 IOU claim for the depositor that acts equivalently to and can be implicitly redeemed for central bank money (the depositor can transfer it to another account, write a check on it, demand his cash back, etc.). These claims by depositors on banks are termed demand deposits or commercial bank money and are simply recorded in a bank's accounts as a liability (specifically, an IOU to the depositor). From a depositor's perspective, commercial bank money is equivalent to central bank money – it is impossible to tell the two forms of money apart unless a bank run occurs.
en.wikipedia.org/wiki/Fractional_Banking
It would be nice to hear what you think about the fact the Central bank uses two types of money?
It is accurate, you seem to have a problem with the english language.
Banks loan money they do not have, it is considered money because electronic bank transfers are considered money.
If banks did not loan out more money than they had then the economy would be stable, prices would be realistic, people would not borrow money they could never afford to repay. Which at the end of the day is the end result of all the madness.
Et voila, collapse.
If you create shitloads of money to trade amongst yourselves then you inflate the supply of money and keep it amongst yourselves, then you destroy the working class. For the most part they are not the recipients of these loans...the banks are between each other. See hedge funds, LIBOR rate, derivatives trading blah blah blah.
It is stuff that does not exist.
The issue most authoriatarian followers have with governance is that they always think in terms of 'jobs', they never think in terms of self employment and self sufficiency, its always someone else providing the work and someone else providing the money and someone else taking the responsibility.
When the time for responsibility comes knocking on the doors at the top, they don't answer anymore than the proles who follow them do.
There is no magic wand to be waved around, no rocket science that can fix this mess.
An economy only works if you don't dick with it. We have never had such a situation nor will we ever have it, any more than we ever have had a true communist society.
All we have ever had is stupid con jobs with stupid people falling for the same con job again and again and again.
If only we make things more complicated it will fix everything
