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> You are mistaken, citation: me working in bank on stuff related to this, and generally needing to be aware of capital requirements etc. So your citation is y

by lowkey 5y ago

> You are mistaken, citation: me working in bank on stuff related to this, and generally needing to be aware of capital requirements etc. So your citation is yourself and your claim that you work in the field and therefore we should trust you blindly? I don’t buy it. It seems you have a vested interest in preventing others from learning about the fractional lending scam. As for your claim that a 0% reserve ratio means banks CAN lend depositor funds, that is either a huge misunderstanding on your part or an outright lie. Show me any documentation anywhere that supports your novel interpretation, and I’ll back down. > The fraud involved in fractional reserve lending is that the lender has no cost of funds. They are not risking their own assets and are therefore more willing to lend cheaply. >> Again, if this was true, why would any of the banks bother lending to anyone? They could just issue themselves a trillion dollar loan at 0% to be paid back in 1000 years, the buy a yacht and retire. Why the hell would they voluntarily subject themselves to the of actually lending money to other people, then have to try and chase them down for repayment? The rules require that a real flesh and blood borrower, signs a loan agreement obligating that they repay the loan with interest. Only a signed loan agreement creates the fractionalized funds in the borrower’s bank account. This is what prevents a bank from borrowing an unlimited amount. They can create money to issue loans but they cannot create money without a loan agreement with a borrower.

avianlyric 5y ago
> It seems you have a vested interest in preventing others from learning about the fractional lending scam. This isn’t a huge conspiracy, I’m no where near important enough to benefit from such a conspiracy even if it did exist. > As for your claim that a 0% reserve ratio means banks CAN lend depositor funds, that is either a huge misunderstanding on your part or an outright lie. Show me any documentation anywhere that supports your novel interpretation, and I’ll back down. I’m not sure how many I can say this. Unless you’re the fed you can’t magic money out of thin air. If the banks aren’t lending depositor funds, then what are they lending? Where does the money come from? You seem to be basing your understanding of fractional banking upon an old blog post, which talked about an interest quirk of how banks worked. But that quirk only exists if, and only if, you ignore the abstraction that supports it. It’s not different to over allocating disk storage using ZFS. I can build a volume that capable proving 10TB quota to 100 people, using only a 1TB drive. When I create those quotas I “make” storage, by writing their available storage into a storage quota journal. But the only works if we ignore the fact that the storage quota journal itself is an abstract, and leaky one at that. If people actually tried to use their 100TB quota, they would quickly discover that writes beyond 1TB just don’t work, because I only have 1TB of actual physical storage. Same applies to banks and their ledgers. The reserve ratio just determine how much cash the banks has to hold in reserve at a reserve bank, that’s all. That cash is customer deposits. If you want to assert that isn’t the fact, then you need to explain where the money is actually coming from, and why a billionaire hasn’t bought a bank, and lent themselves a few billion more dollars out of thin air. Now I had a whole thing written out here with sources from the Federal Reserve etc explaining via tiny little steps what a reserve requirement is, then what a reserve requirement ratio is, and how that all links to net-transaction accounts, which basically account the hold depositor funds etc etc But then I realised I don’t give shit if you remain uneducated and ignorant while wearing a tin foil hat, so whatever. Have good life, goodbye.
- lowkey 5y ago
  It must be difficult to learn that everything you thought you understood about banks and loans and money creation is a lie based on a scam. Here is an article explaining how banks create money for loans, search for “The money creation process”: http://www2.harpercollege.edu/mhealy/eco212i/lectures/ch13-17.htm http://www2.harpercollege.edu/mhealy/eco212i/lectures/ch13-1... > banks create money when doing their normal business of accepting deposits and making loans. When banks make loans they create money. remember from chapter 12 that money (M1) is currency (coins and bills) AND checkable deposits. When I got a loan for my boat the bank called me up and said that they deposited the loan in my checking account. This new deposit is NEW MONEY created by the bank. they just turned on their computer, logged into my account, and changed the amount that I had. They created money.

by lowkey 5y ago

avianlyric 5y ago

> It seems you have a vested interest in preventing others from learning about the fractional lending scam. This isn’t a huge conspiracy, I’m no where near important enough to benefit from such a conspiracy even if it did exist. > As for your claim that a 0% reserve ratio means banks CAN lend depositor funds, that is either a huge misunderstanding on your part or an outright lie. Show me any documentation anywhere that supports your novel interpretation, and I’ll back down. I’m not sure how many I can say this. Unless you’re the fed you can’t magic money out of thin air. If the banks aren’t lending depositor funds, then what are they lending? Where does the money come from? You seem to be basing your understanding of fractional banking upon an old blog post, which talked about an interest quirk of how banks worked. But that quirk only exists if, and only if, you ignore the abstraction that supports it. It’s not different to over allocating disk storage using ZFS. I can build a volume that capable proving 10TB quota to 100 people, using only a 1TB drive. When I create those quotas I “make” storage, by writing their available storage into a storage quota journal. But the only works if we ignore the fact that the storage quota journal itself is an abstract, and leaky one at that. If people actually tried to use their 100TB quota, they would quickly discover that writes beyond 1TB just don’t work, because I only have 1TB of actual physical storage. Same applies to banks and their ledgers. The reserve ratio just determine how much cash the banks has to hold in reserve at a reserve bank, that’s all. That cash is customer deposits. If you want to assert that isn’t the fact, then you need to explain where the money is actually coming from, and why a billionaire hasn’t bought a bank, and lent themselves a few billion more dollars out of thin air. Now I had a whole thing written out here with sources from the Federal Reserve etc explaining via tiny little steps what a reserve requirement is, then what a reserve requirement ratio is, and how that all links to net-transaction accounts, which basically account the hold depositor funds etc etc But then I realised I don’t give shit if you remain uneducated and ignorant while wearing a tin foil hat, so whatever. Have good life, goodbye.

lowkey 5y ago
It must be difficult to learn that everything you thought you understood about banks and loans and money creation is a lie based on a scam. Here is an article explaining how banks create money for loans, search for “The money creation process”: http://www2.harpercollege.edu/mhealy/eco212i/lectures/ch13-17.htm http://www2.harpercollege.edu/mhealy/eco212i/lectures/ch13-1... > banks create money when doing their normal business of accepting deposits and making loans. When banks make loans they create money. remember from chapter 12 that money (M1) is currency (coins and bills) AND checkable deposits. When I got a loan for my boat the bank called me up and said that they deposited the loan in my checking account. This new deposit is NEW MONEY created by the bank. they just turned on their computer, logged into my account, and changed the amount that I had. They created money.