FORUMS > The Sin Bin > Money For Nothing |
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International Board Member | 1437 | No Team Selected |
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Feb 2002 | 22 years | |
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Apr 2017 | Mar 2017 | LINK |
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995.gif "If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln:995.gif |
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Quote: SBR "Accepting that banks create money out of nothing when they make a loan. What happens to the repayments on the loan?
Now part of the repayment will be covering the interest and so clearly that is profit for the bank (just like mark-up in a shop). However I'm unclear as to what happens to the part of the repayment that reduces the outstanding amount of the loan. Is part of the money which the bank created then destroyed so all of the repayment profit for the bank? Or does the repayment money cancel out the bank created money in some way?'"
When you repay a bank loan the bank destroys the money (credit), apart from the interest which the bank keeps as profit.
Quote: SBR "The “sin” here is not that of any one person or company – it is the collective failure of our society to educate itself about the nature of the financial, economic and banking systems we have depended upon for our material needs. The money system we have acquiesced in having foisted upon us operates on a kind of alchemy, which allows private banking interests to generate what we rather ludicrously refer to as “our” money.
Those who interpret the meaning of these events speak as though there was a fixed pool of money which belongs to the Irish people, inferring that what has happened is that certain people have “stolen” from “us”. This is nonsense. “Our” money system is owned and controlled by the banks. This is the way our leaders have decided things should be, and there has been no appreciable dissent.
Privately-owned banks, operating all but indifferently to the public good, create and destroy money more or less at will. Consequently, all but a tiny percentage of our money system exists in a digital limbo inaccessible by the people. For every euro of money created, a corresponding debt is brought into being, and this is multiplied over time by the process of levying interest. Thus, our economy consists overwhelmingly of debt, at once spelling our salvation and our doom.'"
www.irishtimes.com/newspaper/opi ... 84392.html
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Quote: SBR "Accepting that banks create money out of nothing when they make a loan. What happens to the repayments on the loan?
Now part of the repayment will be covering the interest and so clearly that is profit for the bank (just like mark-up in a shop). However I'm unclear as to what happens to the part of the repayment that reduces the outstanding amount of the loan. Is part of the money which the bank created then destroyed so all of the repayment profit for the bank? Or does the repayment money cancel out the bank created money in some way?'"
When you repay a bank loan the bank destroys the money (credit), apart from the interest which the bank keeps as profit.
Quote: SBR "The “sin” here is not that of any one person or company – it is the collective failure of our society to educate itself about the nature of the financial, economic and banking systems we have depended upon for our material needs. The money system we have acquiesced in having foisted upon us operates on a kind of alchemy, which allows private banking interests to generate what we rather ludicrously refer to as “our” money.
Those who interpret the meaning of these events speak as though there was a fixed pool of money which belongs to the Irish people, inferring that what has happened is that certain people have “stolen” from “us”. This is nonsense. “Our” money system is owned and controlled by the banks. This is the way our leaders have decided things should be, and there has been no appreciable dissent.
Privately-owned banks, operating all but indifferently to the public good, create and destroy money more or less at will. Consequently, all but a tiny percentage of our money system exists in a digital limbo inaccessible by the people. For every euro of money created, a corresponding debt is brought into being, and this is multiplied over time by the process of levying interest. Thus, our economy consists overwhelmingly of debt, at once spelling our salvation and our doom.'"
www.irishtimes.com/newspaper/opi ... 84392.html
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Rank | Posts | Team |
International Board Member | 1437 | No Team Selected |
Joined | Service | Reputation |
Feb 2002 | 22 years | |
Online | Last Post | Last Page |
Apr 2017 | Mar 2017 | LINK |
Milestone Posts |
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Milestone Years |
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Signature |
995.gif "If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln:995.gif |
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| Quote: Charlie Sheen "Do the bank get chicks for free though?'"
Yes.
They get to buy their services with their big, tax payer funded, bonus payouts. So they do indeed get the chicks for free because you are paying for them instead.
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Rank | Posts | Team |
International Board Member | 1437 | No Team Selected |
Joined | Service | Reputation |
Feb 2002 | 22 years | |
Online | Last Post | Last Page |
Apr 2017 | Mar 2017 | LINK |
Milestone Posts |
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Milestone Years |
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Location |
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Signature |
995.gif "If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln:995.gif |
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| Quote: Cookridge_Rhino "I agree with your explanation of fractional reserve banking but the OP doesnt, he (because he has misunderstood things he has read and heard) thinks that they need no money at all in their reserves in order to lend money, he thinks they literally lend as much money as they want because it all compeletely comes from nowhere.'"
Forget the fractional reserve system, thats from yesteryear.
Banks now just create money from nothing, then go into the interbank lending markets and loan the money needed to cover their reserve ratios. That's how Northern Rock was sunk, nobody would lend them the money.
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Rank | Posts | Team |
International Chairman | 14845 | No Team Selected |
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Dec 2001 | 23 years | |
Online | Last Post | Last Page |
Oct 2021 | Jul 2021 | LINK |
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143_1357419061.jpg :d7dc4b20b2c2dd7b76ac6eac29d5604e_143.jpg |
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| Quote: LeighGionaire "Forget the fractional reserve system, thats from yesteryear.
Banks now just create money from nothing, then go into the interbank lending markets and loan the money needed to cover their reserve ratios. That's how Northern Rock was sunk, nobody would lend them the money.'"
They were borrowing money on the markets. That's just the same as me borrowing a fiver from you.
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Rank | Posts | Team |
International Board Member | 1437 | No Team Selected |
Joined | Service | Reputation |
Feb 2002 | 22 years | |
Online | Last Post | Last Page |
Apr 2017 | Mar 2017 | LINK |
Milestone Posts |
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Milestone Years |
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Location |
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Signature |
995.gif "If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln:995.gif |
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| Quote: tb "Haven't we done the 'let's return to the 14th Century and pretend the Lombards never existed" to death now? Can we move on from "money for nothing" and discuss the more intriguing topic of chicks for free?'"
In my opinion understanding how money is created and destroyed is the number one political question.
Why do we let private banks control the money supply? Why do governments continue to borrow debt based money from private banks when they could create the money themselves?
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Rank | Posts | Team |
International Board Member | 1437 | No Team Selected |
Joined | Service | Reputation |
Feb 2002 | 22 years | |
Online | Last Post | Last Page |
Apr 2017 | Mar 2017 | LINK |
Milestone Posts |
|
Milestone Years |
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Location |
|
Signature |
995.gif "If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."
-Abraham Lincoln:995.gif |
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