Forum Post: Merry-Go-Banking
Posted 7 years ago on March 30, 2017, 2:42 p.m. EST by agkaiser
(2555)
from Fredericksburg, TX
This content is user submitted and not an official statement
Take that penny and put it in the bank. Leave it for your great-grandchildren. They'll be millionaires. And all the while the bank will loan it out and good things will be done with it. But don't worry the bank always keeps enough in reserves to take care of demand for withdrawals of savings.
Hmmm - is that the way it works? Let's say that one day the bank doesn't have enough deposits to cover the [lucrative] loan it wants to make. It goes ahead and writes the check anyway and records the debit. The check is cashed at another bank, which records a credit, perhaps wiping out an excess debit of it's own. You see where this is going...
If, at the end of the day, a bank is under-reserved, it can borrow from us [the FED] at the discount rate [Current target rate this week (wk13,'17) 1.00% - www.bankrate.com/rates/interest-rates/prime-rate.aspx] and reloan it to us (if it hasn't already) at a handsome profit. So why can't we borrow from [ourselves] the FED and save us and our government [the biggest debtor] a lot of money? Do you really have to ask? (see "chain of payments" below)
For a more in depth study of the con in economy, always look to Michael Hudson. The article linked below, though longish, is recent and good introduction to economic heterodoxy.
short excerpt: "... In 2007 I published a lead article in Harper’s forecasting this, showing a chart on why the Bubble Economy couldn’t go on for more than a year. And it didn’t. It ended just as everybody thought it would. If you look at the growth of debt compared to the growth in the ability to pay it, you see that many economies already have passed the point of intersection. At the point where debts can no longer be paid, you have a break in the chain of payments. That’s what causes a crash...."
''Economist Michael Hudson on Junk Economics'' (Audio)
''Democracy at Work's Paul Sliker and Dante Dallavalle .. talk with Michael Hudson, one of the world's six economists who accurately predicted the 2007-2008 financial crisis. His new book ... ''J is for Junk Economics'',reveals how the mainstream economic vocabulary has been turned around in an Orwellian way to mean - just the opposite of what words used to mean. Dr. Hudson explains how the media and academia use well-crafted euphemisms to conceal how the economy really works,the economy under Obama vs. Trump, and what might be coming next.''
radix omnium malorum est cupiditas ....
''Public Debt, Printing Money and How Governments Pay for Wars'':
fiat justitia ruat caelum ...
cave cave deus videt :)
''I don't want to spread any blasphemous rumours; but I think that God's got a sick sense of humour; and when I die I expect to find him laughing!'' [Depeche Mode] Though being ''careful, careful - G*d is watching'' may be so, S/He is clearly not one for divine intervention!! Also fyi, see ...
http://billmoyers.com/story/trump-family-empire-expands/ by Nomi Prins and
consider: https://twitter.com/Shadz66Shadz6t6/status/860580904560975873
e tenebris, lux ...
The con of cons threatens human survival.
It pretends to be salvation
It uses propaganda to fault tolerantly program populations.
It's especially successful in America, where the marks believe the masters who've enslaved them are the defenders of freedom. In a perverse way that's true. The conservatives have defended their freedom to enslave the majority who work to produce the wealth they enjoy, one way or another, since the 1820s and John C. Calhoun invented state's rights to preserve "de juro" slavery.
As usual, Michael Hudson gives a much more comprehensive summary of human cultural devolution than I could hope to convey. The whole rather long interview is well worth reading.
http://www.nakedcapitalism.com/2017/03/michael-hudson-democracy-collaborative.html
For a more in depth study of the con in economy, always look to Michael Hudson. The article linked below, though longish, is recent and good introduction to economic heterodoxy.
short excerpt: "... In 2007 I published a lead article in Harper’s forecasting this, showing a chart on why the Bubble Economy couldn’t go on for more than a year. And it didn’t. It ended just as everybody thought it would. If you look at the growth of debt compared to the growth in the ability to pay it, you see that many economies already have passed the point of intersection. At the point where debts can no longer be paid, you have a break in the chain of payments. That’s what causes a crash...."
http://thenextsystem.org/what-is-junk-economics/
Round and round we go ...
Well, really? Where it stops nobody knows? Anyone with their eyes opens knows this road we're on has a bad [dead] end!