Posted on 02/09/2014 7:58:51 AM PST by Errant
FOX Analyst Charlie Gasparino: JP Morgan $13 Billion Fine Was ... Oct 21, 2013 - FOX Analyst Charlie Gasparino: JP Morgan $13 Billion Fine Was Political Punishment for Criticizing Obama (Video). Posted by Jim Hoft on ...
And I know that banks cannot.
Back in the days when a trillion dollars in debt seemed like real money.
Banks are accountable for the money they create out of thin air via loans. They cannot just “make” this money and steal it.
The Fed is not accountable. It does the real “money creation” out of thin air. And it does do a lot of stealing by hiring a huge do nothing (highly liberal and affirmative action) workforce that churns out useless studies. Plus the lavish salaries and bennies they pay themselves. The FR workforce gets paid way too generously plus the Fed is always building and upgrading office space to be suitably lavish. Billions that does not get remitted to the US Treasury
Banks create money by lending deposits. They cannot create money out of thin air.
Fractional reserve banking means you have created money. 500 years ago.....You (banker) have one bar of gold in your vaults but have loaned out the equivalent of three bars of gold. Your business behaves as if it possesses three bars of gold not just one. Same thing goes on today but the banks are accountable for the books they keep on all this activity
But the Fed is where the real money creation and destruction takes place
Nope. If the bank has one "bar of gold" ($10,000) they lend out less than one "bar of gold" ($10,000), not three "bars of gold" ($30,000)
While banks can’t literally print their own money in a system with a central bank, they can increase the money supply. In a system of fiat currency, banks’ monetary base (i.e., what is actually in the “vaults”) is made up of money backed by the central bank. However, when banks make loans above their reserve (which is pretty much always), it adds to the money supply, specifically what economists call “M2” and “M3” (depending on the type of loan), which are considered less “liquid” than the monetary base. Thus, lending can (but not necessarily will) cause inflation.
********* wrong Todd
Yes, when banks loan out a fraction of deposits, they increase the money supply.
You should probably read that, you might be less confused.
So you new negative cause is misrepresenting fractional reserve banking
Same cause, correcting your errors.
I got raped the other way around... I was a Wachovia Bank shareholder... when the mortgage crisis hit, Wachovia was in decent shape as it didn’t have the exposure to the fiasco of mortgage backed instruments. Wachovia refused to take TARP money it didn’t want. For some reason I can not understand the scumbags on the board at Wachovia got in bed with Wells Fargo and soon enough Wells Fargo bought up Wachovia for 10 cents on the dollar. I lost 90% of a really good sized chunk of holdings that I had inheireted as First Union Stock back in the 1990s... it just sat in a DRIP... and First Union was going up and up and up and the dividend was going up and up and up... it was growing exponentially... then Wachovia and First Union joined up. Then the market tanked.
the Federal Reserve is NOT part of our government
its just some bank
some BIG bank
and a scam
bkmk
bkmk
Sure it is.
its just some bank some BIG bank
Yup, a big Central Bank.
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