OMG YOU MORONS STOP PRINTING MONEY OUT OF THIN AIR

[fultonCoShooter]

Canadian dollar closes 0.44 of a cent higher at 102.41 cents US

1 hour ago

TORONTO - The Canadian dollar closed at 102.41 cents US on Thursday, up 0.44 of a cent. The U.S. dollar stood at 97.65 cents Cdn, down 0.42 of a cent.

[mikepro8]

yeah... I love the logic...

We need more money.
-Really?
yeah, we're running low.
- Hm. what can we do?
I dunno, I just noticed.
-How about we print more?
That sounds good.
-Does 100 billion sound okay?
yeah, that should get us by for a month or two....

[Intrigue]

You guys really don't understand how the banking system works, do you?

Let me explain where 100% of the world's money comes from, coming from someone who was in branch management at a location of a $450bn bank until last week (due to me jumping career paths).

It works like this: You need a $1,000 loan, so you stop by the bank. You sign the loan docs. Those loan docs are now worth $1,000 PLUS the total finance charge of the loan, for simplicity's sake, let's say it's a one-year loan at 20% (simple interest), or $1,200 total.

Guess where the bank gets the $1,000 to give you the loan. Ready for this? They make it up! To put it simply, we literally go into a loan GL, with a negative balance, and draw a loan check off of it. Read: We pull the money out of our ass. Those funds don't exist in the real world. We just type up the loan check, and the receiving bank takes it. The negative balance was inversely proportional to the amount of outstanding loans our branch had, minus any interest due.

Do you see where I am going with this? We give you a check with absolutely no backing (aside from your signed loan documents), create funds in the computer, and 'transfer' those 'funds' to the receiving bank via your 'loan check'. Voila! We just created $1,000.

The interesting part is loans are not people's deposited money. Deposits are invested in long term securities, which we have to pay interest on. This is why deposits are not considered an asset, they are a liability. The only real asset banks have, aside from facilities, is loans; which are? Funds created from nothing, representing a piece of paper that the bank has deemed has worth. We created wealth by your WORD that you will pay us back.

Here's the kicker, there isn't enough money in the world to even pay back the INTEREST on all outstanding loans.

The world debt keeps the world economy going! Every cent you have ever touched is financed from somewhere, and is owed to someone, plus interest.

If all debt was attempted to be paid, and no one took out anymore loans, the world economy would grind to a halt instantly. There simply wouldn't be any money.. Anywhere. If people even stopped taking out loans (this goes for corporations and governments, too) the same effect would be seen.

Do some reading, money is literally created by banks, out of thin air; the government just prints the bills. In fact, the vast majority of funds in the world are electronic. I think it is somewhere in the 90% range.

Point being, you should read about market injection by the Fed (Federal Reserve Bank) and how that plays into the market. They are doing the same thing for banks and the market, as your local bank does for you when you need a car loan. Creating money.

Does this devalue the dollar? Sure. Created funds (loans, etc) are partly (mostly) where inflation comes from. I have some videos and links so you can read up on this, let me see if I can find them.

[mikepro8]

Originally Posted by Jon Smykal

You guys really don't understand how the banking system works, do you?

Let me explain where 100% of the world's money comes from, coming from someone who was in branch management at a location of a $450bn bank until last week (due to me jumping career paths).

It works like this: You need a $1,000 loan, so you stop by the bank. You sign the loan docs. Those loan docs are now worth $1,000 PLUS the total finance charge of the loan, for simplicity's sake, let's say it's a one-year loan at 20% (simple interest), or $1,200 total.

Guess where the bank gets the $1,000 to give you the loan. Ready for this? They make it up! To put it simply, we literally go into a loan GL, with a negative balance, and draw a loan check off of it. Read: We pull the money out of our ass. Those funds don't exist in the real world. We just type up the loan check, and the receiving bank takes it. The negative balance was inversely proportional to the amount of outstanding loans our branch had, minus any interest due.

Do you see where I am going with this? We give you a check with absolutely no backing, create funds in the computer, and 'transfer' those 'funds' to the receiving bank via your 'loan check'. Voila! We just created $1,000.

The interesting part is loans are not people's deposited money. Deposits are invested in long term securities, which we have to pay interest on. This is why deposits are not considered an asset, they are a liability. The only real asset banks have, aside from facilities, is loans; which are? Funds created from nothing, representing a piece of paper that the bank has deemed has worth. We created wealth by your WORD that you will pay us back.

Here's the kicker, there isn't enough money in the world to even pay back the INTEREST on all outstanding loans.

The world debt keeps the world economy going! Every cent you have ever touched is financed from somewhere, and is owed to someone, plus interest.

If all debt was attempted to be paid, and no one took out anymore loans, the world economy would grind to a halt instantly. There simply wouldn't be any money.. Anywhere. If people even stopped taking out loans (this goes for corporations and governments, too) the same effect would be seen.

Do some reading, money is literally created by banks, out of thin air; the government just prints the bills. In fact, the vast majority of funds in the world are electronic. I think it is somewhere in the 90% range.

Point being, you need to read about market inject by the Fed (Federal Reserve Bank) and how that plays into the market. They are doing the same thing for banks and the market, as your local bank does for you when you need a car loan. Creating money.

Does this devalue the dollar? Sure. This is partly (mostly) where inflation comes from. I have some videos and links so you can read up on this, let me see if I can find them.

So your point is, on the slippery slope side of things, were fuxed no matter what then... kinda like germany before WWII when the people were LITERALLY papering their walls with worthless Marks? Think they printed too much paper money???

[Intrigue]

Originally Posted by mikepro8

So your point is, on the slippery slope side of things, were fuxed no matter what then... kinda like germany before WWII when the people were LITERALLY papering their walls with worthless Marks? Think they printed too much paper money???

In order to keep the world economy going, we need to create debt (wealth) at a higher rate than the prior year.

You can think of world debt/world economy as a monster that grows as we feed it, and needs more money to survive as it grows. If we stop feeding it, it dies; so we need to create more and more money (more and more loans) to sustain it, and continue to do so at an exponentially higher rate each year.

The system is doomed to eventual failure, and proper management of inflation is the only way to stretch out how long it lasts. So yep, your last post hit the nail on the head!

It can be speculated that eventually, average US income will be $1,000,000,000/yr, but a loaf of bread will costs you $25,000.

[PisnNapalm]

http://zeitgeistmovie.com/

There's a section in the movie on the Federal banking system.

[bogey1]

hes right,(jon) im feeling it now. no body is taking out loans for home improvements. i build the foundations of additions\ houses, and i have noticed when the rate of homeowners taking out home equity loans is cut in half my business suffers...so in other words.............spend money......

[FromMyColdDeadHands]

go back to a TRUE GOLD STANDARD!!! Yup the economy would hurt for a good long time but EVENTUALLY things would go back to the way they used to be (you know the good old days, when people only bought things they actually could afford).

Of course that won't happen with the current government in place...

[sluggie24]

Nothing good for the people will happen with the current government in place.....

[lexington86]

The first hour or so of the movie America: Freedom to Fascism is about the destructive power of the Federal Reserve. If you don't know already, the Fed is a private corporation that is not controlled by the Federal Government (in fact, it's just the opposite). The Fed has no oversight and no checks and balances.

See the full movie (2 hours) here: http://video.google.com/videoplay?do...67390173&hl=en