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Do you know how money is created?

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    #32
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Diego Simeone wrote: »
    Why do you think it's a scam OP? Do you not think it'd be a far worse situation if money creation didn't exist, and businesses and individuals not have any access to loans? That's what'd happen if banks were prohibited from "creating money".


    If the scam didn't exist, we wouldn't need loans. We could save our money and spend it where necessary. We wouldn't need to pay interest.


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    #33
    Rayne Wooney
    Registered Users Posts: 14,136 ✭✭✭✭Rayne Wooney


    The Rothschild reptilian family control it all apparently.. as I found out one early morning, bored, stumbling the dark reaches of the internet


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    #34
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    CJC999 wrote: »
    Or you simply don't have the ability...

    Anyway I'm away to watch the video to enlighten myself so them I'll be as smart as you, hopefully.

    I highly recommend it


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    #35
    Maximus Alexander
    Registered Users Posts: 13,080 ✭✭✭✭Maximus Alexander


    pqdvdplayer wrote: »
    I highly recommend it

    Now that you understand how money is created, could you create some for me pls? Obviously I can't pay you for it, because that wouldn't make any sense, but I'd like... be really thankful and stuff. I'd do it myself but I'm too dumb to understand the video.


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    #36
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Rayne Wooney wrote: »
    The Rothschild reptilian family control it all apparently.. as I found out one early morning, bored, stumbling the dark reaches of the internet

    That is a load of crap. Why would you believe that. It's just fractional reserve lending. Not some David Icke bogus


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    #37
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Maximus Alexander wrote: »
    Now that you understand how money is created, could you create some for me pls? Obviously I can't pay you for it, because that wouldn't make any sense, but I'd like... be really thankful and stuff. I'd do it myself but I'm too dumb to understand the video.

    Stop trying to be sarcastic because you're failing. Watch the video or get off this thread because it clearly is not for you.


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    #38
    Maximus Alexander
    Registered Users Posts: 13,080 ✭✭✭✭Maximus Alexander


    pqdvdplayer wrote: »
    Stop trying to be sarcastic because you're failing. Watch the video or get off this thread because it clearly is not for you.

    I told you I tried to watch the video but I'm too dense for it. It's all big words and stuff. Pls hep.


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    #39
    punisher5112
    Registered Users Posts: 24,647 ✭✭✭✭punisher5112


    Made in Ireland ?

    The Jews ?

    Toilet roll after its been used?

    Some ink, a printer, press some additives and a secret ingrediant.

    I have said too much.


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    #40
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Look guys, put simply, the banks create money out of nowhere and lend it to us who work out asses off to pay it back with added interest. The banks then get the real money and the interest and we are left on our asses. The same happens with the government. When a new school needs to be built, they borrow money which has to be paid back by the taxpayer. It is a one way street, with all money eventually ending up at the bankers. If this isnt a scam I really don't know what is.


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    #41
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Maximus Alexander wrote: »
    I told you I tried to watch the video but I'm too dense for it. It's all big words and stuff. Pls hep.

    Just stop trolling


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    #42
    Amirani
    Moderators, Society & Culture Moderators Posts: 12,523 Mod ✭✭✭✭Amirani


    pqdvdplayer wrote: »
    If the scam didn't exist, we wouldn't need loans. We could save our money and spend it where necessary. We wouldn't need to pay interest.

    How many successful businesses do you know that operate without some amount of gearing?

    How many people do you know can afford to buy a house without a mortgage?

    How do you think our financial system would operate without just these 2 aspects? Credit is an efficient use of capital and money creation is exactly that. There's no need to leave money lying idle. If a bank knows that only 10% of people are going to demand hard currency, why bother keeping 100% available, it's massively inefficient?


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    #43
    Seaneh
    Banned (with Prison Access) Posts: 18,300 ✭✭✭✭Seaneh


    It basically boils down to this.

    Banks create money when they make loans.

    The Bank of England are the first major financial institution in the world to admit this but Economists have been pointing it out for over a century.

    The common percetion is that banks loan money they already have and then make a profit on the interest, this is untrue, they loan money they created the second they approved the loan AND get the interest.

    http://www.bankofengland.co.uk/publications/documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf


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    #44
    punisher5112
    Registered Users Posts: 24,647 ✭✭✭✭punisher5112


    The banks. Ah now I would never have thunk of that.

    Wow.


    Thought I was right before.

    Money makes the world go round.....


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    #45
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Seaneh wrote: »
    It basically boils down to this.

    Banks create money when they make loans.

    The Bank of England are the first major financial institution in the world to admit this but Economists have been pointing it out for over a century.

    The common percetion is that banks loan money they already have and then make a profit on the interest, this is untrue, they loan money they created the second they approved the loan AND get the interest.

    Finally, someone who understands!


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    #46
    Sir Arthur Daley
    Closed Accounts Posts: 6,720 ✭✭✭Sir Arthur Daley


    pqdvdplayer wrote: »
    Finally, someone who understands!

    You could have posted in a more appropiate forum for more serious answers.


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    #47
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Diego Simeone wrote: »
    How many successful businesses do you know that operate without some amount of gearing?

    How many people do you know can afford to buy a house without a mortgage?

    How do you think our financial system would operate without just these 2 aspects? Credit is an efficient use of capital and money creation is exactly that. There's no need to leave money lying idle. If a bank knows that only 10% of people are going to demand hard currency, why bother keeping 100% available, it's massively inefficient?

    I'm not saying that borrowing should be completely stopped. But banks should only lend money that EXISTS and not create money out of thin air. This is the problem.


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    #48
    pq0n1ct4ve8zf5
    Closed Accounts Posts: 10,070 ✭✭✭✭pq0n1ct4ve8zf5


    Seaneh wrote: »
    It basically boils down to this.

    Banks create money when they make loans.

    The Bank of England are the first major financial institution in the world to admit this but Economists have been pointing it out for over a century.

    The common percetion is that banks loan money they already have and then make a profit on the interest, this is untrue, they loan money they created the second they approved the loan AND get the interest.

    http://www.bankofengland.co.uk/publications/documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

    Far too many long words and high falutin concepts there! If you want to explain it to people you're better off insulting people's intelligence for a page or two :pac:


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    #49
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Sir Arthur Daley wrote: »
    You could have posted in a more appropiate forum for more serious answers.

    I was going to, but I realised that in a more appropriate forum, people would already have known. This forum would show me if "normal" people know about it, and clearly they don't.


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    #50
    Rayne Wooney
    Registered Users Posts: 14,136 ✭✭✭✭Rayne Wooney


    pqdvdplayer wrote: »
    That is a load of crap. Why would you believe that. It's just fractional reserve lending. Not some David Icke bogus


    They were sent from Alpha Zeon12 to teach our species about banking


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    #51
    Sir Arthur Daley
    Closed Accounts Posts: 6,720 ✭✭✭Sir Arthur Daley


    pqdvdplayer wrote: »
    This forum would show me if "normal" people know about it, and clearly they don't.

    Are you calling us thick?


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    #52
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Rayne Wooney wrote: »
    They were sent from Alpha Zeon12 to teach our species about banking

    Come on this is not a conspiracy theory, its fact


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    #53
    Iwasfrozen
    Registered Users Posts: 16,250 ✭✭✭✭Iwasfrozen


    pqdvdplayer wrote: »
    I don't mean physically, but do you understand the way in which the value of the money is actually created. I know exactly how, but I am just curious to see if people on here also know about the biggest scam known to mankind (not really, because the majority of mankind doesn't have a f*****g clue)
    Kyuss I haven't been talking to you in ages. How are you buddy?!


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    #54
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Sir Arthur Daley wrote: »
    Are you calling us thick?

    Why would you make that assumption? I posted here because if I posted this in a more specialised forum, I would obviously get responses from more informed users on the topic. Its not about intelligence, just knowledge. Saying that, I've provided ye with solid proof, yet some of you still ignore it, so you could very well be thick


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    #55
    Amirani
    Moderators, Society & Culture Moderators Posts: 12,523 Mod ✭✭✭✭Amirani


    pqdvdplayer wrote: »
    I'm not saying that borrowing should be completely stopped. But banks should only lend money that EXISTS and not create money out of thin air. This is the problem.

    But that's inefficient. There are regulatory limits to how much money a bank can create via mandatory reserve limits.

    If a bank has 1 million in deposits, but knows based on a long period in existence, that only 10% of people will ever come looking for cash, why not loan out 2 million? Only 200k of this will ever be needed in cash.

    Admittedly, it bears certain similarities to a pyramid scheme, which is why the regulatory environment here is so important. If the system didn't exist, well, there's not enough deposits in banks to cater for consumer demand for money. Hence, we wouldn't have mortgage loans or start-up businesses.


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    #56
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Diego Simeone wrote: »
    But that's inefficient. There are regulatory limits to how much money a bank can create via mandatory reserve limits.

    If a bank has 1 million in deposits, but knows based on a long period in existence, that only 10% of people will ever come looking for cash, why not loan out 2 million? Only 200k of this will ever be needed in cash.

    Admittedly, it bears certain similarities to a pyramid scheme, which is why the regulatory environment here is so important. If the system didn't exist, well, there's not enough deposits in banks to cater for consumer demand for money. Hence, we wouldn't have mortgage loans or start-up businesses.

    Explain how it is inefficient? If the banks don't have the money to lend, then they shouldn't lend it! Simple as. You're biased towards the banks in your statement.


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    #57
    Maximus Alexander
    Registered Users Posts: 13,080 ✭✭✭✭Maximus Alexander


    I'm not ignoring it. I'll be on the blower to my bank first thing in the morning to tell them to stop this practice.


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    #58
    Knasher
    Registered Users Posts: 2,370 ✭✭✭Knasher


    Why do you think that nobody knows how the banking system works? This is stuff you learn in secondary school.


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    #59
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Maximus Alexander wrote: »
    I'm not ignoring it. I'll be on the blower to my bank first thing in the morning to tell them to stop this practice.

    Your bank has workers in it, they have nothing to do with the practice. They merely provide the service. Thats like telling a train driver to stop performing the daily route. You're insane!


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    #60
    Nino Brown
    Closed Accounts Posts: 1,507 ✭✭✭Nino Brown


    Diego Simeone wrote: »
    But that's inefficient. There are regulatory limits to how much money a bank can create via mandatory reserve limits.

    If a bank has 1 million in deposits, but knows based on a long period in existence, that only 10% of people will ever come looking for cash, why not loan out 2 million? Only 200k of this will ever be needed in cash.

    But then the money they loan out is deposited in another bank, who use that as reserves, and a small amount of reserves becomes a massive amount of debt, which is mathematically impossible to repay. It's a ponzi scheme, and they only ever end one way


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    #61
    pqdvdplayer
    Registered Users Posts: 158 ✭✭pqdvdplayer


    Knasher wrote: »
    Why do you think that nobody knows how the banking system works? This is stuff you learn in secondary school.

    You don't learn about the way in which wealth is created out of thin air in school. They say in the textbooks that all money is backed by gold, when this is certainly not the case.


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