Re: Ever wondered how the banks went bust? (Fractional Banking - Money Reform Party)


"Mel Rowing" <mel.rowing@xxxxxxxxxxxxxx> wrote in message
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On Oct 19, 5:28 pm, "Redman" <redman1...@xxxxxxxxxxxxxx> wrote:
"Logician" <sa...@xxxxxxxxxxxxx> wrote in message

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http://en.wikipedia.org/wiki/Fractional-reserve_banking

I just watched a DVD which explained how banks loan money they do not
have. It was very interesting and produced by the Money Reform Party
(http://www.moneyreformparty.org.uk/)

The common thinking among the electorate is that banks loan out money
they have from depositors. In fact this is not completely true. Banks
actually loan out money based on a fraction of the deposit, but the
deposit could be from a debt. In other words Bank A is loaning out
money from a depositor but the depositor could have borrowed the
money. This will work fine if the bank loaned out just money it had as
the same money would circulate. But the bank will loan out a fraction
of the money which then will be used to loan out again and again.

A simple example:
Bank A receives 100 pounds and loans out 80 and keeps 20.
The 80 loaned out is to say Bank B or a person who invests in Bank B.
Bank B has now 80 pounds and so loans out 64 pounds and keeps 16
pounds.

So the first 100 pounds has been used to loan out 80+64 = 144 pounds
and the banks have just 36 pounds in cash.
This process is continued until the 100 pounds in cash is used to
support up to NINE times that amount (a legal restraint).

The banks are basically working together to loan out non-existent
money and receive interest payments on money that never did exist and
in principle making billions from that practice.

This has been used to create trillions in debt for which no actual
cash or assets exist to support the debt.

But since the banks have insufficient cash to support their loans,
they go bust when the expenses they have fail to be paid by more
interest (due to legal constraints) or depositors simply withdraw
their funds. That is how some banks went bust and that is also how
almost ALL the banks went bust overnight.

Next time someone produces a moral argument about "paying your debts"
or "paying your way" just reproduce the above. That should silence
them, unless they are stupid, drunk, on drugs or a Conservative.

You can trust a Logician to find the truth.

Please Please Please don't tell the fuckwits on this ng how the Banks
actually work, they don't/won't believe you. You also forgot to mention
the
interest that the Banks add on to the non existent money they produce out
of
thin air, this is the real killer and one of the main reasons we all pay
taxes.

I've been trying for some time now to get people proclaim "money from
thin air" to explain how.

This is a business I really am interested in entering.

Forgot to add. This business will get you sent to prison, why? Well because
only the banking industry is allowed to make money out of thin air. It's not
the Government or the Police that will take you to court, it will be someone
acting on behalf of the banking industry, why? Well becuase you've let the
cat out of the bag. The big secret the banks don't want you too know about.
You'll get done for fraud but the banks legally get away with it.

Redman



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