There will never be a sovereign crypto currency

[12DrinkMore]

1 hour ago, chingching said:

Your basic premise is wrong.  Money is created by the process of loans, BUT local banks like SCB or Bangkok Bank, or Citibank can only loan out an amount dictated by the central bank.  For example if SCB has 100M thb from deposits, the Central Bank will allow them to loan a fraction of it ( fractional reserve ) So if they are allowed to loan 50% they can loan 50M,  and that has created 50M thb that did not exist before.  If the local banks did not have to take direction from the govt. central bank, then why not go into SCB and ask for a 1M dollar loan in USD.   

 

You can always go and ask.

 

There are two basic restrictions.

 

1. The bank is prepared to take the risk of lending you the money. You have to prove that you are able to supply some collateral for the loan. Which might be property deeds for a large loan or your promise to work your <deleted> off and repay the loan for a small personal loan.

 

2. The capital reserve requirement held as part of the shareholders' funds, which can be written down if a debt goes tits up.

 

The banks, as another poster just pointed out, do not look at deposit accounts before making loans, nor do they consult the Central Banks.

 

[Wonderboy]

1 hour ago, chingching said:

Your basic premise is wrong.  Money is created by the process of loans, BUT local banks like SCB or Bangkok Bank, or Citibank can only loan out an amount dictated by the central bank.  For example if SCB has 100M thb from deposits, the Central Bank will allow them to loan a fraction of it ( fractional reserve ) So if they are allowed to loan 50% they can loan 50M,  and that has created 50M thb that did not exist before.  If the local banks did not have to take direction from the govt. central bank, then why not go into SCB and ask for a 1M dollar loan in USD.   

I lend you 100$ and suddenly there is 100$ new money created. New to me...

[12DrinkMore]

4 hours ago, Wonderboy said:

I lend you 100$ and suddenly there is 100$ new money created. New to me...

 

You are not a bank.

[Wonderboy]

On 1/25/2018 at 4:25 PM, 12DrinkMore said:

 

You are not a bank.

So what? If the bank lends out money from deposits, no new money is created. Think your analogy is missing some steps...

[chingching]

2 hours ago, Wonderboy said:

So what? If the bank lends out money from deposits, no new money is created. Think your analogy is missing some steps...

if you lend me $100,  the net amount of money is the same,  I am +100, you are -100.  When the bank lends you money they do NOT take existing money to give to you.  They write you a check,  for which there are no actual dollars backing it up.  Therefore the money is created out of thin air., and the net amount of money increases.  
The money supply has increased about 3X since 2008.  Where do you think this came from ?

[how241]

Anyone know of a place in PATTAYA  where I can buy a bitcoin wallet ?  Anyone see them at the mall ?  Thanks

[Wonderboy]

1 hour ago, chingching said:

if you lend me $100,  the net amount of money is the same,  I am +100, you are -100.  When the bank lends you money they do NOT take existing money to give to you.  They write you a check,  for which there are no actual dollars backing it up.  Therefore the money is created out of thin air., and the net amount of money increases.  
The money supply has increased about 3X since 2008.  Where do you think this came from ?

Banks are not allowed to do that. If so any bank can effectively print money and it would be total anarchy. A regular bank can only lend out money from deposits or money which they in turn they borrow from other sources like the central bank. 

[sirineou]

Perhaps I am missing something but 

Of course there will never be a Sovereign Cryptocurrency those two terms are diametrically opposed.  It is like saying that Up will never be down. 

Crypto is hidden from the control of the Sovereign , once it becomes Sovereign it is no longer Crypto, at least to the sovereign who is issuing it.  

 

[chingching]

11 hours ago, Wonderboy said:

Banks are not allowed to do that. If so any bank can effectively print money and it would be total anarchy. A regular bank can only lend out money from deposits or money which they in turn they borrow from other sources like the central bank. 

Banks are allowed to do that,  so I suppose you would call what is happening in Venezuela now "Paradise Found"  It might not be anarchy yet, but hardly social harmony.

This explains how banks don't need your deposit to make loans,  they make the loans first, and because of fractional reserve they don't have to completely "repay" the loans they made.   https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp

[Brunolem]

18 hours ago, Wonderboy said:

Banks are not allowed to do that. If so any bank can effectively print money and it would be total anarchy. A regular bank can only lend out money from deposits or money which they in turn they borrow from other sources like the central bank. 

You need to get an update...presto!

Banks haven't been lending from deposits for eons!

Banks do indeed create money by lending...there is no printing, just a double entry in the books...and hopla...the magic trick is done...

[Brunolem]

18 hours ago, sirineou said:

 

Of course there will never be a Sovereign Cryptocurrency those two terms are diametrically opposed.

 

Sure thing...

 

Never say never!

 

https://www.zerohedge.com/news/2018-01-26/draft-bill-would-make-cryptorubles-legal-tender-russia