This is worthy of a great discussion

B

betterinvestmentthanshare

Well-Known Member
Google it if you want the full story


Citigroup mistakenly credited a customer account with $81 trillion

KEY POINTS
  • Citigroup mistakenly credited a customer's account with $81 trillion last year when it meant to send just $280.
  • The payment, which took place last April, was missed by two employees but caught 90 minutes after it was posted, the Financial Times reported Friday.
  • The mistaken payment was reversed several hours later and reported to the Federal Reserve and Office of the Comptroller of the Currency as a "near miss."


 
For me the red flag isn’t that it was mistake, it’s that one bank had a lazy $81 trillion lying to send to a customer….any customer!
$81 trillion is a hell of a lot of money especially when the alarm bells are ring everywhere that the US is only $17 trillion in debt.
Does anyone else see that something does not add up how money is supposed to be created and credited????????
Everyone is focused on the mistake instead!!!!
 
betterinvestmentthanshare said:
For me the red flag isn’t that it was mistake, it’s that one bank had a lazy $81 trillion lying to send to a customer….any customer!
$81 trillion is a hell of a lot of money especially when the alarm bells are ring everywhere that the US is only $17 trillion in debt.
Does anyone else see that something does not add up how money is supposed to be created and credited????????
Everyone is focused on the mistake instead!!!!
Click to expand...

So they wouldn't have had a lazy $81T lying around, as @JohnnyBravo300 said, it's just numbers on a computer screen. They mistakenly credited the customer in the same way they create any amount of money, enter a $81T liability in one column of their balance sheet with a corresponding $81T asset in the other other. Of course the problem here is that there is no corresponding asset. It's actually fkn hilarious. :D

I'm sure this is not news to anyone, but if I wanted to buy a house for $1M with a $200K deposit, I'd shop around for a loan from say a bank which would then create a liability on their balance sheet (a deposit of $800K into my account) with a corresponding asset in the other column (a house with a mortgage of $800K). They don't have money lying around looking to lend, they just create money out of thin air using a keyboard, mouse and computer screen.
 
Last edited:
mybullion.com.au said:
It really is an infinite money glitch. Here’s one of the many great vids explaining how it works:

Click to expand...

Fractional Reserve Banking does seem logical. That's why so many believe it. BUT, it's not how it actually works.

The money u deposit at the bank ? yes they keep a small percentage for day to day transactions, but the rest goes into money markets to earn the banks interest. When u invest Millions - Billions, u can get pretty good rates. But a better return on their efforts is create money from nothing for free & then charge Interest on it.

The real creation of money is creation out of nothing. U walk into a bank & ask for $1,000,000 for a house. A contract is drawn up. U sign/they sign. They digitally write $1,000,000 into ur account ( creation from nothing ) Now the Banks balance sheet is - Liability to u $1,000,000 - Asset to the bank, a house with a valuation of $1,200,000 ( the contract/mortgage u sign means if u don't pay, they seize the house, sell it & recover their loan money, when that money goes back to the bank - poof - it disappears back into nothing, banks balance sheet is zeroed out as if the money never existed ) It's why Banks compete so fiercely to loan out money. The create it for free & get to charge interest - easy money !

It's Commercial BANKS that create/destroy est - 97% of money. Banks control the creation/supply/direction of Money. A Reserve Bank is just to smooth out liquidity flows within the Financial System. ( yes central banks create money, but that's for liquidity/rescue within the Banking System & buy Gov Bonds no one else will, lol )

Magic Money Theory - Money is created by the Banks out of nothing at their discretion. When it's repaid it's disappears back into nothing. ( There's estimated $2.5 Trillion in USA Cash world wide, just USA GDP is close to $30 Trillion, World GDP is over $100 Trillion - $2.5 Trillion cash is a drop in the big Bucket. Cash is just day to day transaction & even that is slowly going to all digital )

Richard Werner proved it " Empirically " by observed experience at a real bank, with real transactions.:eek:

Read/watch some of Werner's work & u will understand the creation of Infinite Magic Money :cool:

:D
 
Yep, FRB probably existed at some point in time but now banks don't lend deposits and if they lend reserves (which they don't do any more either I think) they're only lent to other banks because reserves are "banking money" only.

@mybullion.com.au if you want to learn more the alternatives to Werner (who I find rather droll) would be the likes of Steve Keen, or the MMT crowd Kelton, Wray, Mitchell and if course Mosler.
 
Props to @betterinvestmentthanshare who posted the Tucker/Werner convo recently. I watched it and learned a lot, it also put me to sleep. Double win :D Will check out those other individuals too, thx shiney.

SKULL said:
When u invest Millions - Billions, u can get pretty good rates. But a better return on their efforts is create money from nothing for free & then charge Interest on it.
Click to expand...

And I'm sure tax is charged somewhere in the process too. Genius.
 
mmm....shiney! said:
Yep, FRB probably existed at some point in time but now banks don't lend deposits and if they lend reserves (which they don't do any more either I think) they're only lent to other banks because reserves are "banking money" only.

@mybullion.com.au if you want to learn more the alternatives to Werner (who I find rather droll) would be the likes of Steve Keen, or the MMT crowd Kelton, Wray, Mitchell and if course Mosler.
Click to expand...

Agree that Werner can be a bit Dry. He's very Academic.

I've seen some of Keen. Very good. I will take a look at the others u mentioned :)
 
If you're on Twitter you can find Keen easily, just beware that the MMT academics (Keen is not one) can be a bit lefty which grates with me at times.
 
mybullion.com.au said:
Props to @betterinvestmentthanshare who posted the Tucker/Werner convo recently. I watched it and learned a lot, it also put me to sleep. Double win :D Will check out those other individuals too, thx shiney.



And I'm sure tax is charged somewhere in the process too. Genius.
Click to expand...

OHH YEAH !

Taxes/Surcharges/Fees/Servicing Charges/& anything else they can think of to SKIM/SKIN u down to the bone & leave u with a few scraps !

I Wonder which is the the dirtiest Business - Banking or Politics ?
 
So we've examined how the private sector (commercial banks) creates money, here Steve Keen explains how the government (central bank) creates money in about 3 minutes citing Steph Kelton's work:


It's just brilliant. Bye bye any shortage of liquidity, hello better standard of living! Until politicians like Jim Chalmers or Paul Rand or even Musk step into the arena and demand governments run surpluses (or a balanced budget) and fuck the whole process up because they're either ignorant, or even worse completely aware of how the process works but are just clamouring for votes to gain power.
 
Keen explaining how austerity creates a balance sheet recession (see Richard Koo) and a certain future economic crisis:

 
Last edited:
I'm going OT but here's Steph Kelton:


The point is that if we rely increasingly on private sector money creation as opposed to government sector money creation to stimulate economic growth then we're going to have to keep generating more and more personal debt to drive the economy in order to maintain our lifestyles at best.

And it's not working.
 
mmm....shiney! said:
So we've examined how the private sector (commercial banks) creates money, here Steve Keen explains how the government (central bank) creates money in about 3 minutes citing Steph Kelton's work:


It's just brilliant. Bye bye any shortage of liquidity, hello better standard of living! Until politicians like Jim Chalmers or Paul Rand or even Musk step into the arena and demand governments run surpluses (or a balanced budget) and fuck the whole process up because they're either ignorant, or even worse completely aware of how the process works but are just clamouring for votes to gain power.
Click to expand...

Mmm, not sure on that. His main point was the " Deficit " creates the money & ..........just the Deficit creates the money.

I will watch again. Maybe I missed something !
 
It doesnt matter if your on a gold standard or not, gold still backs every currency just like its doing now at $3300.

Its like having the gold standard without admitting it!
 
You must log in or register to reply here.
Back
Top