othello Posted September 29, 2006 Share Posted September 29, 2006 UK debt is at record levels. Does it also mean that savings are at record levels? Where does the money come from? Quote Link to comment Share on other sites More sharing options...
Jason Posted September 29, 2006 Share Posted September 29, 2006 A qwerty keyboard? Or maybe central banks have a big red button they press to magically create all this debt (then they could have a nodding bird pressing the button, just like on The Simpsons)? Quote Link to comment Share on other sites More sharing options...
othello Posted September 29, 2006 Author Share Posted September 29, 2006 A qwerty keyboard? Or maybe central banks have a big red button they press to magically create all this debt (then they could have a nodding bird pressing the button, just like on The Simpsons)? Your explanation is the best one I've heard so far. Quote Link to comment Share on other sites More sharing options...
assetpriceinflation Posted September 29, 2006 Share Posted September 29, 2006 In a nutshell they make it up see: http://www.financialsense.com/fsu/editoria.../2006/0927.html Quote Link to comment Share on other sites More sharing options...
gfromls Posted September 29, 2006 Share Posted September 29, 2006 this video sums the job up...... its from the us but it's right on "the money" http://video.google.co.uk/videoplay?docid=...02553&q=fed Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 29, 2006 Share Posted September 29, 2006 UK debt is at record levels. Does it also mean that savings are at record levels? Where does the money come from? God no. Fractional Reserve Banking means that banks only need 3% of real capital to back a new loan, the rest is created out of thin air when the loan/mortgage is written. The US actually has negative savings rates! Quote Link to comment Share on other sites More sharing options...
JustYield Posted September 29, 2006 Share Posted September 29, 2006 UK debt is at record levels. Does it also mean that savings are at record levels? Where does the money come from? It comes from the future. JY Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 29, 2006 Share Posted September 29, 2006 A qwerty keyboard? Or maybe central banks have a big red button they press to magically create all this debt (then they could have a nodding bird pressing the button, just like on The Simpsons)? Actually it's funny you should say that, the Bank of England has just updated the way it peforms daily open market operations, the need for the nodding bird has now been negated. Quote Link to comment Share on other sites More sharing options...
The_Equalizer Posted September 29, 2006 Share Posted September 29, 2006 (edited) What's to stop anyone with a reasonable bit of cash opening their own bank? Er say like that Mr. Branson fella. Oh bu##er! But seriously, if you could get enough people to stump up the cash, where's the catch? Edited September 29, 2006 by The_Equalizer Quote Link to comment Share on other sites More sharing options...
MarkyB Posted September 29, 2006 Share Posted September 29, 2006 The huge increase in cash seemed to come about from the proceeds of crime act, it kinda all fits in with the release of the new legislation! what do you guys think? Quote Link to comment Share on other sites More sharing options...
?...! Posted September 29, 2006 Share Posted September 29, 2006 What's to stop anyone with a reasonable bit of cash opening their own bank? Er say like that Mr. Branson fella. Oh bu##er! But seriously, if you could get enough people to stump up the cash, where's the catch? Want to set up a bank? This should give you a rough starting point. http://www.global-money.com/item.php?id=8 Quote Link to comment Share on other sites More sharing options...
Guest Shedfish Posted September 29, 2006 Share Posted September 29, 2006 It comes from the future. JY said with a casual Jedi gesture? or like Peter Andre advertising furniture, or home loans, Whitney magic bells sound effect on a Yamaha DX7 Quote Link to comment Share on other sites More sharing options...
?...! Posted September 29, 2006 Share Posted September 29, 2006 said with a casual Jedi gesture? or like Peter Andre advertising furniture, or home loans, Whitney magic bells sound effect on a Yamaha DX7 It actually does come from the future. Quote Link to comment Share on other sites More sharing options...
Guest mattsta1964 Posted September 29, 2006 Share Posted September 29, 2006 God no. Fractional Reserve Banking means that banks only need 3% of real capital to back a new loan, the rest is created out of thin air when the loan/mortgage is written. The US actually has negative savings rates! I think the term fractional reserve banking is becoming rather generous. Who was it who described the new money being created i the USA as 'helicopter money'? A catastrophe in the making! Quote Link to comment Share on other sites More sharing options...
cynic Posted September 29, 2006 Share Posted September 29, 2006 It comes from the future. JY I'm sure I'll go to my grave not understanding how this can be anything but smoke and mirrors. The idea of fractional reserve banking makes some sort of surreal sense just as much as the 'future' being the provider - maybe these things are one and the same. But if tomorrows money is todays provider, then at what point does the inductive principal breakdown? What stops this becoming a perpetual virtuous circle? Can anyone explain why if fractional reserve banking can work effectively on 3% of 'real' resources (whatever 'real' might possibly mean, god only knows) why shouldn't it work on a 1% basis which would presumably make us instantly globablly 3 times richer?...or any arbitrary tiny percentage come to that. Is there a book in the Dummies series on this kind of thing? Quote Link to comment Share on other sites More sharing options...
assetpriceinflation Posted September 29, 2006 Share Posted September 29, 2006 I think the term fractional reserve banking is becoming rather generous. Who was it who described the new money being created i the USA as 'helicopter money'? A catastrophe in the making! Ben Bernanke - recent new head of the Federal Reserve - an academic whose studies of the Great Depression led him in 2001 to say that - The effects of the depression were worsened by the credit crunch of the central bank and that it wouldn't happen under his tenure as he would simply print money and drop it from Helicopters as a way of maintaining liquidity. Shame he never studied Weimar Germany or present day Zimbabwe where the citizens have all the money in the world yet can't afford anything. Quote Link to comment Share on other sites More sharing options...
MarkyB Posted September 29, 2006 Share Posted September 29, 2006 This is where it is coming from... http://www.ft.com/cms/s/1bbaee2a-4f21-11db...00779e2340.html Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 29, 2006 Share Posted September 29, 2006 What's to stop anyone with a reasonable bit of cash opening their own bank? Er say like that Mr. Branson fella. Oh bu##er! You need to get a licence and the reserve requirements for a new operation would be quite high, once you can show that you can keep the plates spinning you can write loans on the back of very low reserve requirements. Anyway, in banking the theme is for ever more consolidation, size means that money keeps flowing within your system between your own customers accounts or credit facilities. Quote Link to comment Share on other sites More sharing options...
Guest Posted September 29, 2006 Share Posted September 29, 2006 I'm sure I'll go to my grave not understanding how this can be anything but smoke and mirrors. The idea of fractional reserve banking makes some sort of surreal sense just as much as the 'future' being the provider - maybe these things are one and the same. But if tomorrows money is todays provider, then at what point does the inductive principal breakdown? What stops this becoming a perpetual virtuous circle? Can anyone explain why if fractional reserve banking can work effectively on 3% of 'real' resources (whatever 'real' might possibly mean, god only knows) why shouldn't it work on a 1% basis which would presumably make us instantly globablly 3 times richer?...or any arbitrary tiny percentage come to that. Is there a book in the Dummies series on this kind of thing? Here is a good start, and a good collection of futher links Money Supply Quote Link to comment Share on other sites More sharing options...
Guest mattsta1964 Posted September 29, 2006 Share Posted September 29, 2006 Ben Bernanke - recent new head of the Federal Reserve - an academic whose studies of the Great Depression led him in 2001 to say that - The effects of the depression were worsened by the credit crunch of the central bank and that it wouldn't happen under his tenure as he would simply print money and drop it from Helicopters as a way of maintaining liquidity. Shame he never studied Weimar Germany or present day Zimbabwe where the citizens have all the money in the world yet can't afford anything. I wonder if this is how the USA is going to pay off its debts? With trillions of worthless dollars. Th Asians will be pleased! Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 29, 2006 Share Posted September 29, 2006 Want to set up a bank? One chap did actually set up his own bank on a laptop, unfortunately he couldn't persuade the jury and was consequently sent down for fraud. He was even on TV a while back. Quote Link to comment Share on other sites More sharing options...
cynic Posted September 29, 2006 Share Posted September 29, 2006 (edited) Can we club together and have an HPC bank, after a few months in business we could all be living in Mayfair and farting through silk. Edited September 29, 2006 by cynic Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 29, 2006 Share Posted September 29, 2006 It actually does come from the future. And where does the money in the future come from? Quote Link to comment Share on other sites More sharing options...
Fancypants Posted September 29, 2006 Share Posted September 29, 2006 farting through silk. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 29, 2006 Share Posted September 29, 2006 (edited) Can we club together and have an HPC bank, after a few months in business we could all be living in Mayfair Belmarsh and farting through silk Big Harry. Edited September 29, 2006 by BuyingBear Quote Link to comment Share on other sites More sharing options...
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