Be afraid be very afraid

[nraforlife]

Anti-Bank Dem Maxine Waters Rises On Key Financial Panel
Rules: If you thought Rep. Barney Frank was bad, his likely replacement is worse. Rep. Maxine Waters is Congress' most anti-bank member — unless she owns stock in one, that is.

http://news.investors.com/Article/593190/201111291900/maxine-waters-will-be-bad-for-banks.htm

maybe someone who is truly anti-bankster is just what is needed.

[nraforlife]

If we could only find someone willing to insist that banks actually possess the money they offer to loan .... before they loan it.

When it looked like JFK was about to do that his brain ended up splattered all over Jackie's clothes

[ivanm]

The US had a federally owned central bank before it created.  If that is such a good deal then why did we change it?

Our government isn't known for doing things right, so the last thing we need is our money in the hands of those incompetent political gangsters.

[notoc]

American banks essentially loan out the depositors' money plus some of their own investment ...

No.

Banks loan nothing but money spent into existence and backed by nothing but other people's promises to extinguish the loan at some future date - Fiat money

The holder of a fiat $100 dollar bill actually possesses one of two things, an IOU that he himself promises to pay interest upon until it is made good at a future date or an IOU that someone else promises to pay interest upon until it is made good at a future date. Either way the $100 dollar bill is nothing more than a debt marker; a promissory note which is ultimately backed by yet another promissory note called a treasury bond which itself is an IOU written by a tax collector with a promise to pay interest on until it is made good at a future date. This final IOU is nothing more than a government order for the Federal Reserve to increase the country's money supply.

The best bit of all of the above the last bit, the bit where government pays interest on its own money supply.

So it all starts when government creates a treasury bond, a T-Bill ...

How Fractional Reserve Banking Works

[ivanm]

Be honest about it and include the rest of the statement you borrowed the above from.

At present the reserve in bonds for our money supply is probably on the order of a trillion dollars, and it is my understanding that the FRS buys existing bonds from the market when it wants more reserve for more money. It issues the money in return for the bonds it holds. When it wants to contract the money supply it sells off some of the bonds it holds.

The key thing is the user's faith in the currency or money if it is the form of an account entry, as would be the case with a new car loan, for example. As long as the "money" gets the customer or holder what he wants at a reasonable price, inflation wise, then things work ok.

As long as I can draw cash from the bank and use it for my purchases then I don't question what is backing it. 

[notoc]

When it looked like JFK was about to do that his brain ended up splattered all over Jackie's clothes

Amazing idea huh? Have the US government issue its own currency by creating and extinguishing non-interest bearing debt.

[notoc]

Be honest about it and include the rest of the statement you borrowed the above from.

Huh? I borrowed what from what?

I am trying, yet again, to explain to you that the Federal Reserve loans nothing to the government and charges interest on it.

The Federal Reserve does nothing that the government couldn't do itself. Whatever you believe to the contrary government is paying interest on debt instruments that it could create itself at cost.

At present the reserve in bonds for our money supply is probably on the order of a trillion dollars, and it is my understanding that the FRS buys existing bonds from the market when it wants more reserve for more money.

The Federal Reserve increases the amount of money in existence and collects interest on that newly created money ... the Federal Reserve lends the government nothing and charges interest on it.

There is no reason the government can't do exactly the same bookkeeping exercise for itself, at cost.

[dustup]

No.

Banks loan nothing but money spent into existence and backed by nothing but other people's promises to extinguish the loan at some future date - Fiat money

The holder of a fiat $100 dollar bill actually possesses one of two things, an IOU that he himself promises to pay interest upon until it is made good at a future date or an IOU that someone else promises to pay interest upon until it is made good at a future date. Either way the $100 dollar bill is nothing more than a debt marker; a promissory note which is ultimately backed by yet another promissory note called a treasury bond which itself is an IOU written by a tax collector with a promise to pay interest on until it is made good at a future date. This final IOU is nothing more than a government order for the Federal Reserve to increase the country's money supply.

The best bit of all of the above the last bit, the bit where government pays interest on its own money supply.

So it all starts when government creates a treasury bond, a T-Bill ...

How Fractional Reserve Banking Works

No matter how many times I watch videos or read books on this subject.......I am amazed by the ignorance of the general public on this topic!! 

[notoc]

No matter how many times I watch videos or read books on this subject.......I am amazed by the ignorance of the general public on this topic!!  

I believe the thinking goes something like this, "The fraud is so great it can't possibly be happening." ... or perhaps more like this, "If this is true then it can't be true!"

[dustup]

I believe the thinking goes something like this, "The fraud is so great it can't possibly be happening." ... or perhaps more like this, "If this is true then it can't be true!"

That pretty much sums it up!!!