Fractional Rerserve bank lending 101

[SheungWan]

One point in error is #4, from 1873 to 1968, a US "Silver Certificate" would get you the face denomination ($1,$5,or $10) in silver coin or later silver granules of bullion. http://en.wikipedia.org/wiki/Silver_Certificate

Coins, especially the Silver Dollar, was 1 oz of silver. But as silver increased in price, and the need to make coins cheaper to make, the new fiat dollar currency was required.

With decoupling the standard price of gold from USD$32 per oz to market price, the dollar moved from a "metal" based currency to a fiat currency that is backed by the GDP of the US. Lately, people have moved from taking dollars to buying US Treasury bonds based on the "faith" of the US to pay it's bond debt, now at USD$ 17 Trillion and probably headed to 22 Trillion by 2016.

As long as people have "faith" in the dollar, and the ability of the US to pay its interest on the bonds people hold, the world economy is relatively stable.

The real problem is the US has to keep interest rates low otherwise they won't be able to pay the interest on the bonds. Each 1% increase (from 2% to 3% for example, not 2% to 2.02%) currently raises the interest payments by US$660 Billion dollars. As the US National Debt rises, the interest payment will also rise in addition to the interest rate rise. There isn't anytime on the horizon where the US annual deficit will turn to surplus, so the National Debt will continue to grow at unsustainable rates.

One difference between the US and Greece (remember the necessary "hair cut" that was required in their bonds and savings accounts) is the US is a huge manufacturing and production machine with a GDP of around 15 Trillion where Greece had basically tourism, olive products and shipping.

As with the housing crisis, the lesson not learned was "housing prices always go up". Since the US has enjoyed a long term growth span and only some regional areas had short recessions, the young economists and financial professionals used the "housing prices always go up" to justify the housing bubble.

The problem is, once people lose "faith" in the dollar, as indicated by China more and more directly trading with other currencies, the possibility of an even bigger whole world economic crash increases.

My London property keeps going up, up and away.

[Noi657]

Yeah but.... Erm, will the exchange rate keep rising? As the original op seems to know so much! Shall I take my house off the market and wait for it yo rise, rise, rise? Shall I sell and wait fo interest rates to rise, rise, rise? Man, what to do do do

[rakman]

snip...

My London property keeps going up, up and away.

But what was the price prior to and after the crash? Has it recovered it's prior value? I guess the inrush of the French escapees is helping.

Two things to remember, everything is volatile and timing is everything.

[wym]

interesting maybe but related to Thailand?

[rakman]

interesting maybe but related to Thailand?

we live in a globalized economy and what happens in the big economies can affect Thailand's.

[sustento]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

[Loptr]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

[sustento]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

That's not the question I asked and I'm not from the USA.

[Loptr]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

That's not the question I asked and I'm not from the USA.

The only practical and personal thing you can do is remove your assets from the system. Instead of leaving your wealth in fiat currency, convert it to physical assets. Land, precious metals, physical supplies, commodities, things you could use to sustain your families existence.

Got news for you, it doesn't matter if you are from the US or not, unless you live in Syria, Iran or North Korea, you are affected by a Central Bank. Like it or not.

[Ticketmaster]

I think the first bloke was a bit off-topic, but we seem to be straightened out now.

Of course...this Macro-economic sh*t aint difficult, the OP was trying to make it harder to understand than it really is..

I thought it was clear what i was pointing out, complete and utter fraud and theft. i also told you what is the ending result is, I'm just wondering why no one is discussing that at all...

the fed is talking about tapering when the banks are funding the government at these low interest rates!!!! its its unbelievable, don't you see it?

They have to know this, the people at the banks are not stupid, you just have to read the emails over libor, they knew EXACTLY what was going on

or u just have to read the emails at the banks about the CDO's being issued to the public!! they are laughing at you people, and its all a made up game.

I think people get it. And fractional reserve banking, at the root of all "currencies," is one of the biggest scams in the history of the world. It basically robs the middle class and hands the wealth to the capital holders.

The thing is, even the people that are aware of the dire situation have no idea what to do about it. Should they buy gold and put it under their mattresses? But even gold is being manipulated. When things are such a clusterfuck, people poke fun because the only other alternatives are to cry or start killing the culprits.

By the way, William, the dollar was not pegged at $1 to one ounce of gold in 1971. In 1971, the gold "price" ranged from an average of $37.87 in January to an average of $43.48 in December. If you want to educate people, you should check your facts first and you'll have more credibility.

[manarak]

OP's post is strange to say the least...

But one thing I agree on is that currency is... maybe not a straight fraud, but I'd say it serves as a means of subsidizing and taxing the economy at the same time, which is a fundamentally dishonest thing to do with people's holdings.

I have been advocating a currency based on a commodity basket for a long time, i.e. one unit of currency is equal to a defined fraction of a diversified basket of commodities.

[sustento]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

That's not the question I asked and I'm not from the USA.

The only practical and personal thing you can do is remove your assets from the system. Instead of leaving your wealth in fiat currency, convert it to physical assets. Land, precious metals, physical supplies, commodities, things you could use to sustain your families existence.

If I did what you suggest and converted my wealth into land, precious metals etc. would I be able to use these physical assets to go shopping tomorrow and buy some food?

[StreetCowboy]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

We could all move to the successful and prosperous countries that are not held back by their central banks.

Their economies must be booming.

SC

[Naam]

I think the first bloke was a bit off-topic, but we seem to be straightened out now.

Of course...this Macro-economic sh*t aint difficult, the OP was trying to make it harder to understand than it really is..

I thought it was clear what i was pointing out, complete and utter fraud and theft. i also told you what is the ending result is, I'm just wondering why no one is discussing that at all...

the fed is talking about tapering when the banks are funding the government at these low interest rates!!!! its its unbelievable, don't you see it?

They have to know this, the people at the banks are not stupid, you just have to read the emails over libor, they knew EXACTLY what was going on

or u just have to read the emails at the banks about the CDO's being issued to the public!! they are laughing at you people, and its all a made up game.

ah I get it now....your saying the farmers got their oranges stolen while they were playing musical chairs ?

after they read their e-mails over libor.

[Soutpeel]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

Buy an Orange farm ?...

[Naam]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

Buy an Orange farm ?...

open a bank?

[SheungWan]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

The conspiracy bugs, gold bugs, Henry Georgists are back. Or is that singular?

[SheungWan]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

That's not the question I asked and I'm not from the USA.

The only practical and personal thing you can do is remove your assets from the system. Instead of leaving your wealth in fiat currency, convert it to physical assets. Land, precious metals, physical supplies, commodities, things you could use to sustain your families existence.

Got news for you, it doesn't matter if you are from the US or not, unless you live in Syria, Iran or North Korea, you are affected by a Central Bank. Like it or not.

In addition to stocking up on tins of spam, cartridges for your rifle and 'Don't Trespass' notices, remember to fill up as many oil cans with petrol as you have space in your garage. Its going to be a long haul on this thread.

[StreetCowboy]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

Buy an Orange farm ?...

open a bank?

Sit on a bank. And whistle. Innocently. Whenever the gillie comes past.

[SheungWan]

snip...

My London property keeps going up, up and away.

But what was the price prior to and after the crash? Has it recovered it's prior value? I guess the inrush of the French escapees is helping.

Two things to remember, everything is volatile and timing is everything.

Recovery? Where do you think prices went? Central London prices now beyond pre-crisis levels.

[midas]

snip...

My London property keeps going up, up and away.

But what was the price prior to and after the crash? Has it recovered it's prior value? I guess the inrush of the French escapees is helping.

Two things to remember, everything is volatile and timing is everything.

Recovery? Where do you think prices went? Central London prices now beyond pre-crisis levels.

Fear of another bubble casts shadow over housing recovery

The UK's housing market staged an impressive recovery in 2013, ending the year on a high that has fuelled hopes for further growth in 2014. But questions remain over whether the foundations laid over the past 12 months provide solid ground for a stable recovery

http://www.ft.com/intl/cms/s/86ed2bf0-7493-11e3-af50-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F86ed2bf0-7493-11e3-af50-00144feabdc0.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer=#axzz2qFH29Ujj

But then it is it any wonder when the same source of information (which even our leading spokesman for the bwanksters swears by ) reports this

UK living standards drop to lowest level in a decade

http://www.ft.com/intl/cms/s/cf2db8a2-d408-11e2-8639-00144feab7de,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fcf2db8a2-d408-11e2-8639-00144feab7de.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer=#axzz2qFH29Ujj

[midas]

If fractional reserve banking offends us is there anything (practical and personal) that we can do about it?

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

The conspiracy bugs, gold bugs, Henry Georgists are back. Or is that singular?

And the master of misinformation and cheerleader for the bwanksters is also back

[MichaelJohn]

Are we being called idiots or am I missing something?

[NeverSure]

How do I get the frick outta this thread? Oh yeah, the back button.

[Loptr]

The world got along just fine before Central Banks took control. There is no need for a private organization to hold control over a country's money supply and monetary policy. Woodrow Wilson sold the US down the river and knew it.

---

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

That's not the question I asked and I'm not from the USA.

The only practical and personal thing you can do is remove your assets from the system. Instead of leaving your wealth in fiat currency, convert it to physical assets. Land, precious metals, physical supplies, commodities, things you could use to sustain your families existence.

If I did what you suggest and converted my wealth into land, precious metals etc. would I be able to use these physical assets to go shopping tomorrow and buy some food?

Please. let's not be obtuse. You asked for suggestions and I provided the most logical choices to preserve your wealth when or if a currency crisis occurs. If you can't figure out that you need some Fiat in order to transact business on a day-to-day basis, then that's on you.

[sustento]

Please. let's not be obtuse. You asked for suggestions and I provided the most logical choices to preserve your wealth when or if a currency crisis occurs. If you can't figure out that you need some Fiat in order to transact business on a day-to-day basis, then that's on you.

I have to buy an Italian car?

[Loptr]

The only practical and personal thing you can do is remove your assets from the system. Instead of leaving your wealth in fiat currency, convert it to physical assets. Land, precious metals, physical supplies, commodities, things you could use to sustain your families existence.

Got news for you, it doesn't matter if you are from the US or not, unless you live in Syria, Iran or North Korea, you are affected by a Central Bank. Like it or not.

In addition to stocking up on tins of spam, cartridges for your rifle and 'Don't Trespass' notices, remember to fill up as many oil cans with petrol as you have space in your garage. Its going to be a long haul on this thread.

No thank you. I'll leave that to the preppers who actually think they can save the day and take back the republic when the SHTF. I will be 8,500 mile away from the US with all of my assets offshore and out of the reach of the US gubbamint.

Go ahead and make light of my logic. You sound much like those that laughed Peter Schiff off the air in 2006 - 2008 when he called for the collapse. Those people aren't laughing anymore. Go ahead and put all your eggs in the fiat basket, matters little to me.

Why do I even bother with this crew? I think I need to change my sig line as many of you don't deserve the advice.

[Loptr]

Please. let's not be obtuse. You asked for suggestions and I provided the most logical choices to preserve your wealth when or if a currency crisis occurs. If you can't figure out that you need some Fiat in order to transact business on a day-to-day basis, then that's on you.

I have to buy an Italian car?

You sir are one that doesn't deserve anyone providing you the time of day. If you want to participate in discussions concerning monetary and currency trends, it does you little good when you prove just how ignorant or flippant you really are.

Loptr out. You clowns can have this thread.

[StreetCowboy]

The only practical and personal thing you can do is remove your assets from the system. Instead of leaving your wealth in fiat currency, convert it to physical assets. Land, precious metals, physical supplies, commodities, things you could use to sustain your families existence.

Got news for you, it doesn't matter if you are from the US or not, unless you live in Syria, Iran or North Korea, you are affected by a Central Bank. Like it or not.

In addition to stocking up on tins of spam, cartridges for your rifle and 'Don't Trespass' notices, remember to fill up as many oil cans with petrol as you have space in your garage. Its going to be a long haul on this thread.

No thank you. I'll leave that to the preppers who actually think they can save the day and take back the republic when the SHTF. I will be 8,500 mile away from the US with all of my assets offshore and out of the reach of the US gubbamint.

Go ahead and make light of my logic. You sound much like those that laughed Peter Schiff off the air in 2006 - 2008 when he called for the collapse. Those people aren't laughing anymore. Go ahead and put all your eggs in the fiat basket, matters little to me.

Why do I even bother with this crew? I think I need to change my sig line as many of you don't deserve the advice.

Thanks in advance.

[SheungWan]

The only practical and personal thing you can do is remove your assets from the system. Instead of leaving your wealth in fiat currency, convert it to physical assets. Land, precious metals, physical supplies, commodities, things you could use to sustain your families existence.

Got news for you, it doesn't matter if you are from the US or not, unless you live in Syria, Iran or North Korea, you are affected by a Central Bank. Like it or not.

In addition to stocking up on tins of spam, cartridges for your rifle and 'Don't Trespass' notices, remember to fill up as many oil cans with petrol as you have space in your garage. Its going to be a long haul on this thread.

No thank you. I'll leave that to the preppers who actually think they can save the day and take back the republic when the SHTF. I will be 8,500 mile away from the US with all of my assets offshore and out of the reach of the US gubbamint.

Go ahead and make light of my logic. You sound much like those that laughed Peter Schiff off the air in 2006 - 2008 when he called for the collapse. Those people aren't laughing anymore. Go ahead and put all your eggs in the fiat basket, matters little to me.

Why do I even bother with this crew? I think I need to change my sig line as many of you don't deserve the advice.

Ah! The Preppers! Where camouflage green is the new black.