Mike Maloney 'Debt Collapse' is live, full 90 minute presentation

[systematic]

 

[systematic]

semantics Dwayne

Maybe so, but I think it is important to be precise about these things. The original implies something quite different to people who don't understand how fractional reserve banking works.

and yet at the end of the day there is a situation where money is created out of thin air and inflated through an artificial mathematical formula and charging interest on it that has the net effect of taking away the purchasing power of that dollar

when the bankers lend money to the world and expect to be repaid plus interest - it creates a scenario that simply cannot be achieved on a nett scale

its not about the dollar - its about the "value" of that dollar that is being tinkered with

 

[Guest]

Fractional-reserve banking is a type of banking whereby the bank does not retain all of a customer's deposits within the bank. Funds received by the bank are generally lent to other customers. This means that available funds (called bank reserves) are only a fraction (called the reserve ratio) of the quantity of deposits at the bank. As most bank deposits are treated as money in their own right, fractional reserve banking increases the money supply, and banks are said to create money.

Bank runs (or when problems are widespread, a systemic crisis) can occur in fractional-reserve banking systems. To mitigate this risk, the governments of most countries (usually acting through the central bank) regulate and oversee commercial banks, provide deposit insurance and act as lender of last resort to commercial banks.

History

Savers looking to keep their valuables in safekeeping depositories deposited gold coins and silver coins at goldsmiths, receiving in turn a note for their deposit (see Bank of Amsterdam). Once these notes became a trusted medium of exchange an early form of paper money was born, in the form of the goldsmiths' notes.[1]

As the notes were used directly in trade, the goldsmiths observed that people would not usually redeem all their notes at the same time, and they saw the opportunity to invest their coin reserves in interest-bearing loans and bills. This generated income for the goldsmiths but left them with more notes on issue than reserves with which to pay them. A process was started that altered the role of the goldsmiths from passive guardians of bullion, charging fees for safe storage, to interest-paying and interest-earning banks. Thus fractional-reserve banking was born.

However, if creditors (note holders of gold originally deposited) lost faith in the ability of a bank to redeem (pay) their notes, many would try to redeem their notes at the same time. If in response a bank could not raise enough funds by calling in loans or selling bills, it either went into insolvency or defaulted on its notes. Such a situation is called a bank run and caused the demise of many early banks.[1]

Repeated bank failures and financial crises led to the creation of central banks public institutions that have the authority to regulate commercial banks, impose reserve requirements, and act as lender-of-last-resort if a bank runs low on liquidity. The emergence of central banks mitigated the dangers associated with fractional reserve banking.[2][3]

From about 1991 a consensus had emerged within developed economies about the optimum design of monetary policy methods. In essence central bankers gave up attempts to directly control the amount of money in the economy and instead moved to indirect methods by targeting interest rates. This consensus is criticized by some economists.[4]

http://en.wikipedia.org/wiki/Fractional-reserve_banking

 

[systematic]

thats right - if enough people approached the banks and demanded their deposit money - the banks would collapse - because the depositors money is not there and it is not safe

 

[Yippe-Ki-Ya]

I believe there is a reason why this is not taught at school, university. Its because the people controlling or owning the banks can skim wealth (if they spend their fiat dollars before everyone else) off the system without providing anything of real value.

Slam

Ahh - it is taught in school. I first learn it in business studies in high school and then covered it a couple of times at University. My son who is in Year 7 this year has just covered it. It isn't some secret that the Illuminati are trying to hide. Fractional lending and banking principles have been taught in mainstream for years. Whether people have listened and understood is another matter.

malachii

BS

 

[malachii]

Another high quality well researched remark from our resident guru.

malachii

 

[systematic]

people often don't listen and understand things to be able to absorb information that innately simply doesn't make sense


like the principle of gravity :|

 

[Dwayne]

semantics Dwayne

Maybe so, but I think it is important to be precise about these things. The original implies something quite different to people who don't understand how fractional reserve banking works.

and yet at the end of the day there is a situation where money is created out of thin air and inflated through an artificial mathematical formula and charging interest on it that has the net effect of taking away the purchasing power of that dollar

when the bankers lend money to the world and expect to be repaid plus interest - it creates a scenario that simply cannot be achieved on a nett scale

its not about the dollar - its about the "value" of that dollar that is being tinkered with

And yet people knowingly deposit their money in the bank, and understand inflation exists. They get back exactly what they expect - where is the stealing?

 

[systematic]

Maybe so, but I think it is important to be precise about these things. The original implies something quite different to people who don't understand how fractional reserve banking works.

and yet at the end of the day there is a situation where money is created out of thin air and inflated through an artificial mathematical formula and charging interest on it that has the net effect of taking away the purchasing power of that dollar

when the bankers lend money to the world and expect to be repaid plus interest - it creates a scenario that simply cannot be achieved on a nett scale

its not about the dollar - its about the "value" of that dollar that is being tinkered with

And yet people knowingly deposit their money in the bank, and understand inflation exists. They get back exactly what they expect - where is the stealing?

just because people do not realise they are being robbed doesn't mean it is not happening
if the general public was as educated as this forum the financial system would collapse TOMORROW.

 

[Dwayne]

and yet at the end of the day there is a situation where money is created out of thin air and inflated through an artificial mathematical formula and charging interest on it that has the net effect of taking away the purchasing power of that dollar

when the bankers lend money to the world and expect to be repaid plus interest - it creates a scenario that simply cannot be achieved on a nett scale

its not about the dollar - its about the "value" of that dollar that is being tinkered with

And yet people knowingly deposit their money in the bank, and understand inflation exists. They get back exactly what they expect - where is the stealing?

just because people do not realise they are being robbed doesn't mean it is not happening

True. Caveat emptor.

 

[Yippe-Ki-Ya]

I stopped listening around the 30 minute mark. It was a good refresher, but most of us have seen this information through other sources. However, the main reason I stopped listening is when he stated that banks steal your money when you make a deposit. That is dishonest wording, just like his claim that ASE went to 4x the price of silver in the 08-09 crash. That didn't happen and is provable. Not that banks pay much interest now, but take the 1980s. Does Maloney think a business (bank) can take in cash, put it in a safe and then pay out 16-18% interest? How exactly is the bank supposed to earn the money to pay the interest? And a lot of those same people borrow from the bank they put their money into. And your deposits are guaranteed, at least on a nominal basis. So, how exactly is the deposit money stolen?

While I appreciate any spreading of the word about gold and silver, I don't appreciate when the hawkers mislead people through intellectually dishonest wording.

lol - i suggest you do some research on how fractional reserve banking actually works in practice. you may then want to come back and edit your comment about the banks NOT stealing money ...

Banks fraudulently lend out money all the time that they have pulled out their arses and then have the cheek to charge people interest on that phantom money...

Never Gonna Give You Up??

And charging interest on money created out if thin air steals deposit money how exactly?

Money is stolen from all other people holding that currency though dilution. Never Gonna Give You Up???

 

[Dwayne]

lol - i suggest you do some research on how fractional reserve banking actually works in practice. you may then want to come back and edit your comment about the banks NOT stealing money ...

Banks fraudulently lend out money all the time that they have pulled out their arses and then have the cheek to charge people interest on that phantom money...

SAVVVY??

And charging interest on money created out if thin air steals deposit money how exactly?

Money is stolen from all other people holding that currency though dilution. SAVVVY???

Again, that may be stealing but it isn't stealing deposit money.

 

[Yippe-Ki-Ya]

And charging interest on money created out if thin air steals deposit money how exactly?

Money is stolen from all other people holding that currency though dilution. SAVVVY???

Again, that may be stealing but it isn't stealing deposit money.

oh gooddeeee!!! i'll put the bankers back on my Christmas card list then ... :lol:

 

[systematic]

a global bank run would fix that

 

[jparrie]

And charging interest on money created out if thin air steals deposit money how exactly?

Money is stolen from all other people holding that currency though dilution. SAVVVY???

Again, that may be stealing but it isn't stealing deposit money.

Well, technically that may be correct, but I think what Yippe is getting at is the whole fraudulent way that banks make their profits. Profits that do indeed come out of money created from nothing.

 

[Stacks On]

Excellent video, but the best part was silver going vertical while I was watching it

 

[Guest]

Excellent video, but the best part was silver going vertical while I was watching it


http://forums.silverstackers.com/uploads/812_jump.jpg

Heh gives you that cold metallic feeling in your chest , rather than that bowel loosening one further down the body lots of traders must be feeling lately.

 

[hbBear]

Let's look at a world without fractional banking. Let us say that Joe borrows money from a bank to purchase equipment for his business. The equipment seller takes that money and deposits it into his account. Wait, the bank will not take money the because it cannot lend it out. And how will the bank know that those funds were originally borrowed funds?

It is/was the reckless lending and the banks taking fractional banking to extraordinarily dangerous levels that have caused much of the problems. Going on margin 10% is not that risky. Going on margin 98% is extremely risky. Anything can become unsafe when taken to an extreme. Milk is good for you, but too much milk has killed people. People should be careful what they wish for, because a world without fractional lending is going to be a very different one.

It's nice to see someone has got fractional lending and understands the problem.

If I lend $100 to my friend and then he lends $90 of that to another person we have just engaged in fractional lending. It happens all the time in society. The reason people think the banks are creating money is because they think the money in their account belongs to them. It doesn't. It's money that the bank OWES you. Which is why they are paying you interest for it. It is not money in and of itself. However most of society will happily take bank iou's for money rather than the money itself these days.

My understanding of fractional reserve banking is different to this, so perhaps someone can correct me if im wrong.

I was of the understanding that if $100 is deposited with the bank (under a 10% fractional reserve system), rather than the bank lending out $90 of the original $100, it actually 'creates' $900 out-of-thin-air which to loans out. It retains the original $100 which it stores as its 10% reserve against the newly created $900 ($100 being 10% of $1,000).

The 'crime' (in my opinion) is that the bank provides no consideration toward the loan contract that it enters into with the loan applicant. The bank creates the new money out of thin air (costing it nothing) however the loan applicant is now required to provide their time, effort and labour in order to create wealth that can be used to pay back the bank with interest.

Should the loan applicant default on the loan then the bank claims the items of REAL wealth (i.e. the home if it was a home loan)

 

[Guest]

Let's look at a world without fractional banking. Let us say that Joe borrows money from a bank to purchase equipment for his business. The equipment seller takes that money and deposits it into his account. Wait, the bank will not take money the because it cannot lend it out. And how will the bank know that those funds were originally borrowed funds?

It is/was the reckless lending and the banks taking fractional banking to extraordinarily dangerous levels that have caused much of the problems. Going on margin 10% is not that risky. Going on margin 98% is extremely risky. Anything can become unsafe when taken to an extreme. Milk is good for you, but too much milk has killed people. People should be careful what they wish for, because a world without fractional lending is going to be a very different one.

It's nice to see someone has got fractional lending and understands the problem.

If I lend $100 to my friend and then he lends $90 of that to another person we have just engaged in fractional lending. It happens all the time in society. The reason people think the banks are creating money is because they think the money in their account belongs to them. It doesn't. It's money that the bank OWES you. Which is why they are paying you interest for it. It is not money in and of itself. However most of society will happily take bank iou's for money rather than the money itself these days.

My understanding of fractional reserve banking is different to this, so perhaps someone can correct me if im wrong.

I was of the understanding that if $100 is deposited with the bank (under a 10% fractional reserve system), rather than the bank lending out $90 of the original $100, it actually 'creates' $900 out-of-thin-air which to loans out. It retains the original $100 which it stores as its 10% reserve against the newly created $900 ($100 being 10% of $1,000).

The 'crime' (in my opinion) is that the bank provides no consideration toward the loan contract that it enters into with the loan applicant. The bank creates the new money out of thin air (costing it nothing) however the loan applicant is now required to provide their time, effort and labour in order to create wealth that can be used to pay back the bank with interest.

Should the loan applicant default on the loan then the bank claims the items of REAL wealth (i.e. the home if it was a home loan)

Yep exactly.

 

[dccpa]

lol - i suggest you do some research on how fractional reserve banking actually works in practice. you may then want to come back and edit your comment about the banks NOT stealing money ...

Banks fraudulently lend out money all the time that they have pulled out their arses and then have the cheek to charge people interest on that phantom money...

SAVVVY??

And charging interest on money created out if thin air steals deposit money how exactly?

Money is stolen from all other people holding that currency though dilution. SAVVVY???

That is not what Maloney stated. He was talking to those with the deposits. I have already stated that generalized theft occurs through inflation. The fed reserve controls that.

"Banks fraudulently lend out money all the time that they have pulled out their arses and then have the cheek to charge people interest on that phantom money..."

They are limited by the deposits and capital base. So how exactly are they pulling it out of their arses? I am not defending the banks here. I was just opining that Maloney is very loose with the truth. Remember his claim that ASEs went to 4 x silver price when silver tanked. That is a fraudulent statement and I lost any respect I had for him after that.