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House Price Crash Forum


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  1. 1. In FRB, the broad money supply has expanded, vastly, the erosion of fractional reserve requirements and the unceasing profitability of banking and legislation which favours them making even more risky money is the reason they need reforming. 2. Mutuals are perfectly fine, but I'm just saying that why would the average middle class investor go for a mutual which is just as susceptible to a run in a time of a bad investment, when they could go for an investment account where the bank will pay for every last penny they can be milked for if the SHTF. Even if that means providing an emergency l
  2. Why won't people lend their payments back into the banking system?
  3. We have two MSc Financial Mathematics students modelling this, so I'll have to get back to you on this, please remember we are still promoting "the problem" and acknowledge that our solution needs more modelling, but we are on the case. If debts are repayable now they'll be repayable afterwards, if they're not, then someone is screwed anyway. There's a tangled mess of derivatives and debt contracts, and it's going to be tricky to unwind them without something screwing up, with or without the reform. We are modelling all of this though so that potential provisions could be made for the afterm
  4. 1. Because there is no sensible limit to how much banks can lend 2. Of course they'll fail, just far less often and not due to systemic instability, it will be the bad choices of bankers that make them fail. Transaction accounts will always be kept safe, so there'll be no risk of anybody losing them if a banks fail, unlike a mutual fund. Banks will never fail due to panic withdrawals, as you only get your money back after your maturity. The money will be distributed in a fair way after the bank starts to wind up and the loans come back in. 3. The government ended up in this situation not fro
  5. Hi Alan, Could you please clarify what problems you see occuring, or some scenario of events that are problematic happening in a certain sequence?
  6. We are trying to achieve a realistic solution to a number of problems, not utopia in one easy reform, if on a hot day somebody offered you a free vanilla ice cream, but you really wanted a chocolate one as vanilla isn't quite your favourite, would you get angry with them and turn them down? One thing at a time, there's no reason further reforms can't be enacted at a later date, contrary to what some of you here believe, this isn't the Enabling Act of 1933.
  7. We are trying to achieve a realistic solution to a number of problems, not utopia. One thing at a time, there's no reason further reforms can't be enacted at a later date, contrary to what some of you here believe, this isn't the Enabling Act of 1933.
  8. 1) Ok, but it would still shrink to catastrophic levels. 2) Depends on how much people know about what and what isn't money, you can't assume 100% knowledge of the difference between money and credit. Back when there was no support from government, fractional reserve banks failed all the time, what would be different nowadays? 3) Doesn't change the current situation, the government has had to borrow to meet it's policy targets, because the money has not been there from taxation as we are all now so poor in real terms (a house would have cost you equivalent of £88,000 in 1950) - and the gover
  9. A Free market in money has been tried before, it doesn't work and would lead to massive inefficiency in the economy. In our reform we allow alternative currencies, but unless the government expressly permits otherwise, your taxes will still need to be paid in sterling. I'm not interested in any debates about whether taxation or fiat money is right or wrong. If you don't like it, don't vote for our reform - or avoid living in a society where taxation is necessary.
  10. We don't guarantee our investments with the Proposed Bank of England Act. The investment account guarantees are from the banks, not the government. Emergency bailout loans are temporarily created money to protect you from mistakes made by your bank, if the government deems it to be necessary and appropriate.
  11. I'm not keen on answering any questions from you because you are rude and deliberately try to cause offence, and I neither like the style of leading question after leading question or arrogant socratic irony that Injin likes to use, although you didn't use this you seem to be keen on sharing his delight when comparing me with mass murderers. If you can refrain from acting like a child I'll answer your questions. Injin will stay blocked. You'd pay the mortgage back to whoever you paid it back to before the reform, as I explained earlier. Nothing changes with existing loan contracts, can you ex
  12. another limiting factor here is that you'd only have £100 of money to pay off all the 99999 with. The whole money supply (£100) would have to be changing hands at light speed for this to work.
  13. With the reform, we tell it like it is, it's credit, money out on loan, not "broad money" - the money supply is unitary. The transition process is not finished yet, we are still working on it while trying to raise awareness of the general issues with fractional reserve banking and test the rest of the proposals. This is pasted from a very useful conversation we've been having with a member of this forum who has been discussing how to get from a to b with us. As far as the transition process is concerned there are two main obstacles to overcome. The first is to do with monetising the deposit
  14. If my legacy is refusing to be called a Nazi when it's the most ridiculous comparison imaginable given everything we would achieve with this, then I'm pretty happy with that, the only person who's come up with any legitimate criticism is yourself, and it's all been answered and put into perspective so far, so I'm not bothered. Anybody who's really paying attention to what's going on would stop thinking it was cowardly of me to respond to criticism right about the time the Nazi comments started flying my direction after being asked to stop twice. This line of criticism is ridiculous, but despi
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