How is money created? Have you ever stopped to think about that? Incredibly it is 'conjured' out of the air from nothing whenever a loan is taken from a bank. The bank, even more incredibly, is able to charge interest on that money AND take people's REAL assets when they don't pay.

It has to rank as the greatest con inflicted on the world.

How is money created? Have you ever stopped to think about that? Incredibly it is 'conjured' out of the air from nothing whenever a loan is taken from a bank. The bank, even more incredibly, is able to charge interest on that money AND take people's REAL assets when they don't pay.

It has to rank as the greatest con inflicted on the world.

Don't think this will make the Economic Theory forum

Forgive me, but are you suggesting that the con is perpetrated by the bank rather than the fraudster who does not repay his legal obligations ? (the tosser emoticon appears to have disappeared so I shall have to rely on sarcasm)

My previous post was partly based on the stupidity of the comment falling into the troll bracket.

However, I have now seen the OP's previous posts and doubt that he is a troll but is simply regurgitating a post from 27th March.

That being the case, this is nothing to do with fractional reserve banking (simply a centuries old practice of being allowed to lend a multiple of deposits) and could attract more responses with a revised heading of 'how is money created' or 'how is wealth created'

Anyone can create money because money is mearly a

"promise to pay". So if I want your camera but do not have

any govt printed money or something to barter with,

I can write you a promissory note

that details how and when I will provide you with a fair

exchange for your camera. If you accept my note, money

has been 'created'.

All this depends on trust, reputation, risk, and stability of

both the parties and the political economic system.

Banks can create money just as individuals can.

And of course Gov'ts create it too.

Used to be the Gov't promise was to exhange so much gold for

your paper. But now that promise has degraded to

a promise to enforce that others must accept it as

'legal tender' and thus a payment they can not refuse.

===============

As for the reserve ratio system, if you do not want the bank

to be your investment agent choosing how to invest via

loans, and prefer a store of value, then do not put the

money in a bank or investment fund. Invest it yourself

in art or real estate or other forms of intrinsic value.

But an investment/mutual fund with a charter will be

confined to the investment vehicles so stated.

The issue is risk/return ratio. Bank, funds, stocks & bonds,

or hard assets. It is all up to you where it goes and how it

is used.

I tried the promissory note angle at TESCO last week - they looked at me as if I was stupid and insisted on notes of the realm, or at least plastic

How is money created? Have you ever stopped to think about that? Incredibly it is 'conjured' out of the air from nothing whenever a loan is taken from a bank. The bank, even more incredibly, is able to charge interest on that money AND take people's REAL assets when they don't pay. It has to rank as the greatest con inflicted on the world.

somehow i like having as much as possible of this "con" and i got used to living with the 'con'. quite a number of people will agree with me that having ample 'con' at disposal makes life in many (not all) ways much easier. are these people and me all 'conmen'? i assume noble people like you reject that sort of 'con'. am i right?

How is money created? Have you ever stopped to think about that? Incredibly it is 'conjured' out of the air from nothing whenever a loan is taken from a bank. The bank, even more incredibly, is able to charge interest on that money AND take people's REAL assets when they don't pay.

It has to rank as the greatest con inflicted on the world.

Don't think this will make the Economic Theory forum

Forgive me, but are you suggesting that the con is perpetrated by the bank rather than the fraudster who does not repay his legal obligations ? (the tosser emoticon appears to have disappeared so I shall have to rely on sarcasm)

Well considering that the entire US income tax contributions dont manage to pay the interest to the federal reserve bank (a privately owned institution) you do have to wonder 'why' this amount is paid for something that is just as simple to do internally than privately ??

The creature form jeykl Island is a superb history of the last century of banking Machiavellian processes..

I would recommend it to anyone with more than a passing interest in 'money'..

The Money Masters is an excellent site for understanding what they don't tell us in class. The Presidential Quotations page is also very revealing.

http://www.themoneymasters.com/

"How is money created? Have you ever stopped to think about that? Incredibly it is 'conjured' out of the air from nothing whenever a loan is taken from a bank. The bank, even more incredibly, is able to charge interest on that money AND take people's REAL assets when they don't pay. It has to rank as the greatest con inflicted on the world."

Oh no, did you read that conspiracy website, and not stop to think about it critically? There is only one reason, that "money" has any value whatsoever. Without that fundamental knowledge, you'll be susceptible to all sorts of hoaxes, frauds, and disenfranchised souls. The answer has nothing to do with "banks, "interest", or your Pokemon card collection.

The creature form jeykl Island is a superb history of the last century of banking Machiavellian processes..

I would recommend it to anyone with more than a passing interest in 'money'..

"Secrets of the Federal Reserve" is available on the net free. I recommend it as well.

http://www.apfn.org/apfn/reserve.htm

"How is money created? Have you ever stopped to think about that? Incredibly it is 'conjured' out of the air from nothing whenever a loan is taken from a bank. The bank, even more incredibly, is able to charge interest on that money AND take people's REAL assets when they don't pay. It has to rank as the greatest con inflicted on the world."

Oh no, did you read that conspiracy website, and not stop to think about it critically? There is only one reason, that "money" has any value whatsoever. Without that fundamental knowledge, you'll be susceptible to all sorts of hoaxes, frauds, and disenfranchised souls. The answer has nothing to do with "banks, "interest", or your Pokemon card collection.

Of course the reason money has value is down to what value we decide to give it, especially in a fiat system. The fact is that the whole system is ultimately corrupt - banks gaining control of real world assets by issuing money our of fresh air. But because CNN doesn't tell you this it isn't so, right? And because the system had been around for centuries that makes it ok too. With that kind of reasoning we would never have got out of feudalism. It is up to us to evolve and make this world a better place. But don't listen to me, listen to the mainstream media, you can trust them. The economy is doing just fine, Iran is a major threat to the world and there is an Al Quieda agent hiding in your cupboard.