Germany Formally Requests That Greece Hand Over Its Fiscal Independenc

Well, money being a "medium of exchange" Monetary Unit of Wealth was not the first. Before money came seeds/grain, cattle, your children and pre-loved sex toys. Fractional Reserve concepts existed before physical banks or Ancient Greece.
http://en.wikipedia.org/wiki/History_of_banking
Ancient Merchants were the banksters.

The earliest banking info re: Ancient Greece derives from Merchant Foreigners migrating to Greece.

Ancient Greece along with other Empires like that of Rome got drunk on taking credit for something that was not their own idea or achievement.
.

 

Yes. Goldsmiths were before banks.

 

Anyway... my argument is that fractional reserve banking could just as easily (and did back in the day) work with gold/gold backed currency as it does with paper.

Unless you are completely against the idea of debt in any form? (Such as the "interest bearing loans and bills" that even goldsmiths invested in.)

 

Maybe, but it's slightly different with fiat. For example, you deposit $100 at the bank, they hold it as 'reserve' and then write $1000 in freshly created dosh. Someone then deposits that $1000 at the bank, they hold it as 'reserve' and then write $10,000 in loans etc, etc.

And that's just using a 10% reserve ratio. In Aus, there is no reserve ratio, so banks can pretty much write whatever they like. Whereas in your example there is a diminishing ability to write new loans, the current system there is practically no limit.

 

Actually, that is not right - the banks cannot just create money from thin air - they have to either borrow it (from depositors or in the market) or sell shares. Only the reserve bank can actually create new money.

Yes it all happens electronically, but real money actually has to transfer for a loan to be created. If what you suggested took place, then the charts earlier in this thread would not settle down at a level, but continue to infinity. Yet they settle at a level approximated by a log function.

AS for reserve ratios, while there is currently no mandated reserve ratio in Australia, banks keep approx 8% of their assets in liquid instruments (cash, deposits at the RBA, Commonwealth government bonds). This will be formalised by the Basel III regs

 

Not to be contentious; but, I assumed "Reserve Banks" are actually corrupt mongrels from banks whom conspire how to rip off unsuspecting consumers. Therefore, it is appropriate to assume the banks themselves can 'create money out of thin air' by influencing votes/decisions at the Reserve Banks. I scratch your back if you scratch mine.

Source: Vague reading on Reserve Bank history (various Central Banks worldwide) - Wiki and opinionated articles/commentaries.

No need to mention obvious troll obvious Fed Reserve (USA).

 

Yes, of course you are right, only reserve banks print money. I guess the whole point was that even though a similar thing can occur under a gold standard, it is limited by the actual amount of gold in circulation, whereas with fiat the ponzi scheme is much, much larger.

 

You might also be surprised to hear that aus the aus bank loan to deposit ratio is only 150% - meaning that 2/3 of the banks lending is covered by deposits, and 1/3 by bond/money Market borrowings.

 

whether its the banks, the reserve banks, the central banks, or the bank of international settlements .... are we not looking at different parts of the elephant in the room?

 

It is a work in progress ...

 

Banks do not create money from thin air. They create money supply from thin air, and anyone can do this - if they have the resources.

The fraudulence is because they pass this money supply off as money.

You too seem to have fallen for the fraud. Shame on you.

 

Since this thread seems to be no longer about Greece and its fiscal independence, I'm not sure whether this is the right place to ask this, but ... I wonder in how far a "fiscal independence" still exists at all in Greece. Right now. The so-called "Troika" (EC,ECB,IMF) already dictates (at least to some extent) how they have to manage their finances in order to receive the next bailout payment...

 

In order of most importance...

Can someone please chime in and answer this. I have not been following ZeroHedge for a while and have lost my mojo.

I do know Greece citizens have quite a lot of Gold hanging off their necks. There is a few pics in SilverStackers of massive oversized chains and crosses. >_<

And Shame on you for being difficult. Please understand most just cut to the chase with sayings and can't be arsd to be 100% accurate with their expressions and links. For the love of Gold, let there be light - W&F

Did it ever leave the station? We were the only passengers in the bar coach. :lol:

 

Please elaborate on this. It seems you are saying that banks do not create money from thin air,
but create money supply (from thin air) and pass this money off as money.

I am not sure if you are just splitting straws, and saying a straw that has been split is not a straw.
The line of thinking not disimilar to a person saying they didnt shoot anyone, they just pulled the trigger.

 

i think you got my quote and shineys around the wrong way.

 

yeah oh well was not important