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All You Opponents Of Fractional Reserve Banking

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Wonder if he was drunk.

Isnt this the kind of thing the Bildeburgs kill people over?

Maybe he has some unannounced terminal illness and has decided to speak anyway.

Fiat money going anywhere?


Just pretending to have some......that won't be okay any more.....wow. :rolleyes:

Only so much corpse left is there merv?

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Watch what they do, not what they say.

There were moments at the outset of the crisis (excising the fact that they never seemed to notice the scale of the problem that was building), when Merve the Swerve appeared to stand up (contradict) Brown and there were doubts as to whether he would keep his job. However, he soon fell into line.

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One criticism of Basel III with which I have no truck is the length of the transition period. Banks

have up to 2019 to adjust fully to the new requirements. Although some of the calculations of the

alleged economic cost of higher capital requirements presented by the industry seem to me

exaggerated (Institute of International Finance, 2010), I do believe that it is important in the present

phase of de-leveraging not to exacerbate the challenge banks face in raising capital today. Banks

should take advantage of opportunities to raise loss-absorbing capital, and should recognise the

importance of using profits to rebuild capital rather than pay out higher dividends and compensation.

But we must not forget the principle underlying the Basel approach: asking banks to maintain a

buffer of capital above the minimum requirement allows them to run the buffer down in

circumstances like the present. Rebuilding the buffer is a task for the future. So even though the

Bank of England would have preferred an agreement to set capital ratios at higher levels in the long

run, we have no intention of asking UK banks to adopt a faster timetable for implementation of Basel

III. That logic should apply to any reforms we choose to implement. We should not expect to

change the financial system for the better overnight. Rather we need radical reforms that will give us

a much more robust system in the long run, accepting that it may take a period of many years to get



2019 , not much will have changed. Everyones all strident after the event with "I'll never drink again" but

by then we'll be starting another party and getting tipsy.

Edited by northwestsmith2
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"Eliminating fractional reserve banking explicitly recognises that the pretence that risk-free deposits can be supported by risky assets is alchemy.

"Risky" assets. :lol::lol:

Fraudulent, lying, crooked, off balance sheet, deceiving, scamming, rigged, anything goes assets.

Yes it's a pretence that "risk-free" deposits can be supported by assets with those sort of risks. For sure it would require alchemy.

Edited by billybong
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He is bang on the money. I think he is fully aware of the problem - the ever present risk needs to be appropriated correctly to investors/savers, not to the taxpayers.

It's also good to see him say that you can't regulate this stuff. You just can't make risky activities safe - sooner or later, there will always be problems.

It's good to see Kotlikoff's LPB getting another mentioning too. I hope Merv becomes more and more vocal about this stuff as he has a lot of clout and seems to understand where many of the problems lie. He better avoid walking on those hills though... ;)

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He proposes to abolish it in a speech in NY.

Already gone.

If it ever existed.

Anyway, Merv is proposing nothing, just tabling options for elimination.

Yeah, lets ban it, says Merv.

If only we had FRB to ban. we dont.

Indeed. (Do we agree on this? :unsure: )

Though to be fair, banning FRB would eliminate the system we have.

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  • 440 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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