Hi Forum, Just thinking out loud about the expansion of currency supply in Australia, do the Pig 4 etal use FRB in Australia and if so what percentage of deposits do they need to retain in order to lend out? Cheers in advance Alfie
"It's different here" because our country is one of the very few who don't have any reserve % requirements. This means banks can loan out 99% of their reserves, which would have combined effect of creating nearly unlimited amounts. http://en.wikipedia.org/wiki/Reserve_requirement So much for Australia having a much more regulated banking system.
Do you mean to say that they don't explain the creation and use of currency to children in school? Goodness me, how is anybody supposed to achieve any financial independence if we don't teach people about the expansion of the money supply, the privileged role of banks, the collusion with government as the source of so much wealth and the necessity to protect oneself from the excesses of both? /* Sarcasm Off ... in other news ... A 10.3% rise in revenues, one of the most profitable (expensive) banks in the world, they create money out of thin air, they are explicitly backed up by the RBA if anything goes wrong and they still plan to sack 1000 people! :lol:
If 100% of the population actually understood this, there would be rioting in the streets. I have no problem paying interest for borrowing money that they actually have. However I do object to paying them interest for purely an entry into a ledger. I think I need to start my own bank...
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford
I have been reading quite a bit recently about the Fed Reserve and their relationship with the US Government. If the general populace did know how FRB really works and collectively carried out a mass national withdrawal of their hard earned, the big 4 would collapse up their bottoms causing I guess the Government to save the pricks using taxpayers money. I laughed when I discovered who mortgage insurers protect (which loan applicant pays for) if the "lendee" defaults Why have they become so powerful?
Because we have let them be so. Through our collective apathy and selfish desire for something for nothing (welfare) we have increasingly become servants of the state and its authorities than them being public servants. They police the innocent with ever increasing laws and restrictions untill we are so confused about what rights we have that we are even concerned about the penalties imposed for defending ourselves against home invaders! How many thousands of dollars have you paid in traffic "offences" because you believe they have the right to impose arbitrary demands upon you with no other party even claiming damage or even an inconvenience? We are medicated and hyponotised by those we entrusted to serve us so we would allow them to flip the tables and have the citizenry serving them instead. It's Animal Farm (http://en.wikipedia.org/wiki/Animal_Farm), my friend and unfortunately the Pigs have grown into vampires and are living off the lifeblood (earnings) of the innocent. But we can always hope that things will get better, that justice and fairness will prevail in time for our leaders to realise the errors of their ways and reassert their moral responsibility for protecting our individual property rights and maintaining a public commons that supports our livelihood while preserving our freedom. We can certainly hope that the trends sinking into totalitarianism are reversed ... but how much would you bet on it? [youtube]http://www.youtube.com/watch?v=GwKGNO59pqA[/youtube]
Fractional Reserve Banking will be safe now that society is turning into a cashless one. No more runs on the banks with customers after cash. There won't be any. However, Derivatives are IMHO the biggest danger to the collapse of our financial system.. I asked the Question about how Australian banks were involved in derivatives and an SS member put up the data which was mind blowing. Will see if I can find this original post.. Regards Errol 43
I deliberately use cash far more than I used to. Not only because of this but also because the realisation of what would I do if the electronic banking systems go down simultaneously?
