Should the Federal Reserve be abolished?

[Contumacious]

For those who have never seen The Money Masters, it is a conspiracy theory movie about Jewish bankers.

Sound like the rantings of someone we have all heard of?

Our dollar is dying. The Too Big to Fail banks tanked us when we let off of their leashes.

We are headed for another crash...........

And the Bankers, aka the Federal Reserve Stockholders, are ******* over the world.........

Derivatives to the next universe.

We are screwed, and the damned Fed and our politicians are up to their necks in it.

chickenlittle.

What ******* iceberg?

Edward John Smith CPT
USS Titanic

,

 

[percysunshine]

As the US tries to force all the banks in the world to comply with US banking law, the natural response will be to abandon the dollar as a reserve currency.

Eventually the music will stop, and the Fed will have no where to sit.

 

[Toddsterpatriot]

For those who have never seen The Money Masters, it is a conspiracy theory movie about Jewish bankers.

Sound like the rantings of someone we have all heard of?

It's moronic.

I watched it for two minutes and concluded the narrators were complete ignorant idiots.

I have read both Secrets of the Temple and Creature form Jekyll Island.

Two different authors, of two differing political bents, telling basically the same story.

What do you make of that?

Creature from Jekyll Island is a silly book full of errors.

 

[HelenaHandbag]

It's moronic.

I watched it for two minutes and concluded the narrators were complete ignorant idiots.

I have read both Secrets of the Temple and Creature form Jekyll Island.

Two different authors, of two differing political bents, telling basically the same story.

What do you make of that?

Creature from Jekyll Island is a silly book full of errors.

That is marvelously non-specific.

 

[Skylar]

For those who have never seen The Money Masters, it is a conspiracy theory movie about Jewish bankers.

Sound like the rantings of someone we have all heard of?

It's moronic.

I watched it for two minutes and concluded the narrators were complete ignorant idiots.

I have read both Secrets of the Temple and Creature form Jekyll Island.

Two different authors, of two differing political bents, telling basically the same story.

What do you make of that?

There's not much diversity of thought in the conspiracy echo chamber?

 

[Toddsterpatriot]

I have read both Secrets of the Temple and Creature form Jekyll Island.

Two different authors, of two differing political bents, telling basically the same story.

What do you make of that?

Creature from Jekyll Island is a silly book full of errors.

That is marvelously non-specific.

He thinks banks create money out of thin air.

He thinks banks don’t want you to repay your loan.

He thinks that when you default on a loan, the bank doesn’t care, because they created the money out of thin air.

He thinks a bank with a $100 deposit can make a $900 loan.

 

[Contumacious]

The banks didn't issue any currency to pay back their TARP loans. You know why?
Banks aren't allowed to issue currency.

[?

Fractional Reserve Banking

Let’s see how the fractional reserve process works, in the absence of a central bank. I set up a Rothbard Bank, and invest $1,000 of cash (whether gold or government paper does not matter here). Then I “lend out” $10,000 to someone, either for consumer spending or to invest in his business. How can I “lend out” far more than I have? Ahh, that’s the magic of the “fraction” in the fractional reserve. I simply open up a checking account of $10,000 which I am happy to lend to Mr. Jones. Why does Jones borrow from me? Well, for one thing, I can charge a lower rate of interest than savers would. I don’t have to save up the money myself, but simply can counterfeit it out of thin air. (In the nineteenth century, I would have been able to issue bank notes, but the Federal Reserve now monopolizes note issues.) Since demand deposits at the Rothbard Bank function as equivalent to cash, the nation’s money supply has just, by magic, increased by $10,000. The inflationary, counterfeiting process is under way."

.

 

[Toddsterpatriot]

The banks didn't issue any currency to pay back their TARP loans. You know why?
Banks aren't allowed to issue currency.

[?

Fractional Reserve Banking

Let’s see how the fractional reserve process works, in the absence of a central bank. I set up a Rothbard Bank, and invest $1,000 of cash (whether gold or government paper does not matter here). Then I “lend out” $10,000 to someone, either for consumer spending or to invest in his business. How can I “lend out” far more than I have? Ahh, that’s the magic of the “fraction” in the fractional reserve. I simply open up a checking account of $10,000 which I am happy to lend to Mr. Jones. Why does Jones borrow from me? Well, for one thing, I can charge a lower rate of interest than savers would. I don’t have to save up the money myself, but simply can counterfeit it out of thin air. (In the nineteenth century, I would have been able to issue bank notes, but the Federal Reserve now monopolizes note issues.) Since demand deposits at the Rothbard Bank function as equivalent to cash, the nation’s money supply has just, by magic, increased by $10,000. The inflationary, counterfeiting process is under way."

.

I set up a Rothbard Bank, and invest $1,000 of cash (whether gold or government paper does not matter here). Then I “lend out” $10,000 to someone, either for consumer spending or to invest in his business.

Except for the fact that a bank with a single $1000 deposit cannot loan out more than $1000.

How can I “lend out” far more than I have? that’s the magic of the “fraction” in the fractional reserve. I simply open up a checking account of $10,000 which I am happy to lend to Mr. Jones.

That "magic" only works until Mr. Jones writes checks totalling more than $1000. Then his checks bounce and the only magic will be how quickly your bank is shut down and you end up in jail.

 

[Toro]

It's amazing how people who comment about banking have no idea how it works.

 

[Dante]

It's amazing how people who comment about banking have no idea how it works.

yep

 

[eagle1462010]

[ame=http://www.youtube.com/watch?v=mxt7cf0PORE]Fractional Reserve Banking System - Money Creation Explained In A Fun But Thorough Manner - YouTube[/ame]

Making money out of thin air. yep.

 

[HelenaHandbag]

Creature from Jekyll Island is a silly book full of errors.

That is marvelously non-specific.

He thinks banks create money out of thin air.

Where does the Fed get the "money" they print up when they buy a Treasury Bill?

He thinks banks don’t want you to repay your loan.


He thinks that when you default on a loan, the bank doesn’t care, because they created the money out of thin air.

I never got that impression from reading his book.

They want the money. They want the loans in good standing as assets. REOs are an actuarial liability.

He thinks a bank with a $100 deposit can make a $900 loan.

You mean that fractional reserve banking does not work that way?

How does it work?

 

[Toddsterpatriot]

That is marvelously non-specific.

He thinks banks create money out of thin air.

Where does the Fed get the "money" they print up when they buy a Treasury Bill?

He thinks banks don’t want you to repay your loan.


He thinks that when you default on a loan, the bank doesn’t care, because they created the money out of thin air.

I never got that impression from reading his book.

They want the money. They want the loans in good standing as assets. REOs are an actuarial liability.

He thinks a bank with a $100 deposit can make a $900 loan.

You mean that fractional reserve banking does not work that way?

How does it work?

Where does the Fed get the "money" they print up when they buy a Treasury Bill?

The Fed can create money out of thin air. That's what central banks do.
Commercial banks cannot create money out of thin air.

I never got that impression from reading his book.

He said they don't care if you default, because they didn't lend anything of value.
Because the money they lent you was created out of thin air.
Such a monumentally stupid claim, I couldn't finish the book. It was a complete waste of time.

You mean that fractional reserve banking does not work that way?

Nope.

How does it work?

A bank with $100 in deposits keeps a fractional reserve, say $10, and loans out $90.

 

[Toddsterpatriot]

That is marvelously non-specific.

He thinks banks create money out of thin air.

Where does the Fed get the "money" they print up when they buy a Treasury Bill?

He thinks banks don’t want you to repay your loan.


He thinks that when you default on a loan, the bank doesn’t care, because they created the money out of thin air.

I never got that impression from reading his book.

They want the money. They want the loans in good standing as assets. REOs are an actuarial liability.

He thinks a bank with a $100 deposit can make a $900 loan.

You mean that fractional reserve banking does not work that way?

How does it work?

I never got that impression from reading his book.

They want the money. They want the loans in good standing as assets. REOs are an actuarial liability.


Page 27, "When a borrower cannot repay and there are no assets which can be taken to compensate, the bank must write off that loan as a loss. However, since most of the money originally was created out of nothing and cost the bank nothing except bookkeeping overhead, there is little of tangible value that is actually lost. It is primarily a bookkeeping entry".

 

[Skylar]

It's amazing how people who comment about banking have no idea how it works.

Its probably where some of them get their information. Look at the OP. Its blithering nonsense that even its poster won't touch with a 10 foot pole. But swore by only a few days ago.

 

[Politico]

That Executive Order is probably what got Kennedy killed.

I have no doubt on that. The Silver Backs were taken out of circulation almost immediately after his death.

A conspiracy theory. But I would say was his own fault for not going all the way.

 

[Toddsterpatriot]

That Executive Order is probably what got Kennedy killed.

I have no doubt on that. The Silver Backs were taken out of circulation almost immediately after his death.

A conspiracy theory. But I would say was his own fault for not going all the way.

Going all the way with what?

 

[Toddsterpatriot]

Fractional Reserve Banking System - Money Creation Explained In A Fun But Thorough Manner - YouTube

Making money out of thin air. yep.

Thanks for the example of banks lending less than deposits.
The opposite of creating money out of thin air.

 

[eagle1462010]

Fractional Reserve Banking System - Money Creation Explained In A Fun But Thorough Manner - YouTube

Making money out of thin air. yep.

Thanks for the example of banks lending less than deposits.
The opposite of creating money out of thin air.

LOL

And then it gets deposited again, and they can make loans again at the same fractional rate. They can do this for every single deposit. Time and time again. Which multiplies the loans. Which is part of the video you ignore.

Riddle me this.............Goldman Sachs has assets at about 114 BILLION..........But derivatives of around 48 TRILLION. They don't have jack in assets to back up their bets............Tell me that isn't BS..............

 

[eagle1462010]

Explain this. How the Derivative markets exploded from 2000 to the crash?

Was it magic? Why didn't this happen before?

You know why.............It happened in 2000.