[firestarter]

$this->bbcode_second_pass_quote('Yvan', 'D')ebt is not an asset? Debt has no value? If you were holding a government or corporate bond would you hand it over to me for free?

[Yvan]

$this->bbcode_second_pass_quote('firestarter', 'G')overnment debt is a depreciating asset.

[firestarter]

$this->bbcode_second_pass_quote('Yvan', '')$this->bbcode_second_pass_quote('firestarter', 'G')overnment debt is a depreciating asset.

[Yvan]

A bond is equal to the present value of its cash flows which rarely amounts to "shit" unless the maturity is infinity or the principal is equal to zero.

[firestarter]

$this->bbcode_second_pass_quote('Yvan', 'A') bond is equal to the present value of its cash flows which rarely amounts to "shit" unless the maturity is infinity or the principal is equal to zero.

[Bas]

$this->bbcode_second_pass_quote('MacG', '')$this->bbcode_second_pass_quote('Bas', 'y')ou still think that a bank with a 100$ deposits can instantly supply you with a loan of 900$, don't you MacG?

Aside from that, bankruns are always a risk and I'm sure we'll see a couple of those when PO hits.

[MonteQuest]

$this->bbcode_second_pass_quote('Bas', 't')he point is, that the video suggests that the banking system goes from 100$ to a 900$ new loan directly which is a lie. They make a new loan of 90$ and if that get's disposited, they can make a loan of 81$, theoretically ending up at 900$ if every penny is disposited. Thing is, after reaching that 900$ they won't be able to expand any further; a whole lot different from the exponentially growing money supply as suggested by the documentary. Such a system would blow itself up within no time.

[Bas]

the fed sells bonds to extract high powered money from the market. And why is it then, MQ, that so many people on this thread think that a bank with a 100$ in deposits can create a 900$ loan and a $8100 loan out of that?

[MonteQuest]

$this->bbcode_second_pass_quote('Yvan', 'I')n fact the money is not created by the bank it is created by the depositor. If deposits were elaborated as true loans to the bank (principal paid at maturity) instead of being redeemable at any time there would be no money creation.

[MonteQuest]

$this->bbcode_second_pass_quote('Yvan', 'I')f a bank was able to create as many loans as it wants and earn interest on them the inflation would be infinite.

[MonteQuest]

$this->bbcode_second_pass_quote('Bas', 't')he fed sells bonds to extract high powered money from the market. And why is it then, MQ, that so many people on this thread think that a bank with a 100$ in deposits can create a 900$ loan and a $8100 loan out of that?

[mmasters]

$this->bbcode_second_pass_quote('Yvan', 'D')ebt is not an asset? Debt has no value? If you were holding a government or corporate bond would you hand it over to me for free?

[MonteQuest]

$this->bbcode_second_pass_quote('MrBill', ' ')Because actually, I do have a grasp of this, MQ! ; - )

[Bas]

$this->bbcode_second_pass_quote('MonteQuest', '')$this->bbcode_second_pass_quote('Bas', 't')he fed sells bonds to extract high powered money from the market. And why is it then, MQ, that so many people on this thread think that a bank with a 100$ in deposits can create a 900$ loan and a $8100 loan out of that?

[MonteQuest]

$this->bbcode_second_pass_quote('Bas', 'W')hile it's in there, they clearly create an illusion that doesn't represent the facts; that banks with a 100$ of deposits can make a 900$ loan based on that. It's a treacherous little video.

[joewp]

$this->bbcode_second_pass_quote('Bas', '
')While it's in there, they clearly create an illusion that doesn't represent the facts; that banks with a 100$ of deposits can make a 900$ loan based on that. It's a treacherous little video.

[MacG]

$this->bbcode_second_pass_quote('Bas', 'y')our video creates a fundamentally false impression, MacG, when will you finally admit it?

[NEOPO]

$this->bbcode_second_pass_quote('MacG', '')$this->bbcode_second_pass_quote('Bas', 'y')our video creates a fundamentally false impression, MacG, when will you finally admit it?

[Yvan]

$this->bbcode_second_pass_quote('', 'G')etting back to my initial point, it doesn't make it an appreciating asset merely because it's a government bond, unless you want to swallow the way the Gov crunches numbers to arrive at its official rate of inflation. Nevertheless, and not to belabor the off topic point, to each his own.

[MacG]

$this->bbcode_second_pass_quote('NEOPO', ' ')All I know is that economic's is kinda like religion.