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kokyu

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About kokyu

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  1. The US miltary has some nifty robots: And some nice exoskeletons:
  2. Well said. I applaud your efforts to get this more into the mainstream.
  3. What really happened to that 'disappered' money though? It went into someone elses account or pocket when it was loaned didn't it? Even if the shareholders whose it was originally don't get it back it still exists on someones balance sheet. Doesn't it? ;-)
  4. Yes indeed. I really wish there were a simple short cut to explaining it to people who don't understand bookkeeping. All the answers can be found in a wide range of places, but they are not in a language a layman can understand. The reason for this is that it is difficult to accurately express the concepts that are used in normal language, it's too imprecise and leads to mis-interpretation and mis-understanding. Which I guess is why a 'language' for bookkeeping was invented in the first place! It's kind of like trying to write a complex equation out but not being able to use the standard accepted notation. For example here on page 40 of the pdf: http://www.rbs.com/microsites/gra2008/down.../RBS_SFS_08.pdf This is the consolidated balance sheet of RBS. If someone fully understands this balance sheet, and how it fits into the wider system, the answer to the question in this thread and many other threads just fall out. Unfortunately to understand this balance sheet takes a degree of familiarity with the various debits and credits what they mean and how they operate. If someone really wants to understand whats going on they need to invest the time to understand the basics then apply it to the area they are interested in.
  5. Errrr....didn't you see the post above from dazednconfused? :
  6. Yeah, but it's down from 52% in Apr so we must be in a deflationary period
  7. The history of science seems to be one of moving away from ideas that somehow the world or humans are special or at the centre of the universe to one of us and our world being not that special. My understanding of the latest science is that it all points to us being essentially animals like any other no better or worse. Everytime a behavior is identified which is deemed to be uniquely human some form of evidence is provided in which animals exhibit similar behabiours. All the evidence of history in the real world also points to this, which is why we still have wars, sexual behviours which are contrary to the morality of the time, prejudice against outsiders and many other things not considered to be socially acceptable to the various modes of thought we have constructed. The veneer of civilisation is very thin, the sooner this is recognised the sooner we can organise ourselves to take account of this. Denial only makes things worse, imo.
  8. If by 'cash' you mean that a bank has recorded on it's records that it owes you money (i.e you have a bank account) then I agree with you. If you mean actual notes and coins I still mostly agree with you, although the debt in reality means nothing in this case as it is held on the central banks balance sheet. So saying that growth should be based on either of the above kind of 'savings' would be, imo, no better than saying it should be based on debt. They are two sides of the same coin, which is something most economists don't seem to understand. There is no necessary correlation between physical real world asset surplus and a surplus of either of the above kind of 'savings'. Perhaps what we need is an accurate system for measuring real world surplus which cannot be manipulated by central banks (printing notes) or commercial banks (issuing bank credit)?
  9. I think we first need to know what they mean by 'savings'. Do they mean bank credit accumulated under someones name? Do they mean piles of central bank notes under the bed? Do they mean gold buried in the garden? Or do they mean food stored in the cellar?
  10. At last, some proper evidence for deflation. People in the US are paying down some of their debt at last. Shame their govt is taking out loans on their behalf instead though! I await similar figures in the UK with interest. However I think the source of the article is getting a bit confused about hyper inflation. There is more than enough money already in existence to cause it and there will continue to be so for a long time. All it needs is an alignment of events that causes a significant % of the money already in existence, however much it is, to move into physical commodities at the same time. This would create the necessary general prices rises, followed by change in psychology regarding what money is, to tip us over the edge. Unfortunately because so much money has been brought into existence over recent years only a relatively small % of the money supply would need to move for this to happen.
  11. But what could make them become worthless if the major holders never wanted, nor needed, to dump them?
  12. He doesn't understand the difference between a 'loan' and 'extending credit', which is criminal given the influential platform he has been given. Oridnary people and businesses loan money to each other. This operates in the way most people think of (e.g I give you £20 out of the money I currently have in my pocket with the expectation of receiving it back) and this is what is desrcibed in the example in the OP. However most of the money 'owed' isn't owed to ordinary people and businesses. It is owed to banks who do not loan money. They extend credit which is the creation something new (new credit). This is accounted for completely differently than a true loan of something, which is transfering something that already exists to another person. When the credit extended is paid off (i.e someone makes a repayment on their bank 'loan') this permanently destroys the money that is used to 'pay it off'. It cannot cycle through the economy once it is used to pay off a bank 'loan' because it is destroyed due to the manner in which this paying off is accounted for. Therefore the example quoted in the OP is incorrect in that it tries to pretend that the same £100 can be used to pay down many debts in the real world. This is not possible because the majority of 'loans' are in extensions of credit which destroy the money used to pay them off. However if the majority of 'loans' in the real world were 'true loans' between non-bank individuals and businesses then the example would be valid.
  13. I agree. It's common to focus on only one side of the double entry and because everything is **** about face with banks it confuses things!
  14. That post pretty much concurs with my understanding. I think Injin, correctly, doesn't like the term loan being used because nothing is being loaned. 'Loan' is a commonly used expression amongst the public, which the bankers do nothing to discourage, that implies something that is not true. Most so called loan agreements are actually entitled 'credit agreements' which is a more accurate description of what they actually are.
  15. It shouldn't take a month, it would take 5 minutes for any competent director to see exactly what the situation is. The reason why it takes a month is all about making everything appear under control and normal. The fundemental problem is this situation cannot be fixed without either letting all the banks go bust or writing off all the over valued assets. If they write them off within the current banks the banks will be insolvent and will fold anyway. If they transfer the over valuations to bad banks then the losses would be so large as to wipe out the governments who backed these bad banks. If there was a solution to this it would have been implemented already. There isn't imo, so those who don't understand the underlying numbers (i.e most of the markets and politicians) are hoping that a bit of smoke and mirrors will pull us through. Maybe it will this time but there are not many more rounds of this left to go now. Private balance sheets are maxed out, the government balance sheet is now maxed out, the only option left is to print.
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