Posted on 12/23/2023 12:57:24 PM PST by RandFan
Think of it this way…. Imagine if a company issued shares (which you purchased) on December 23, 1913 at $100 a share and today those same shares are worth only $1.02 each share. During those 110 years that company diluted the 💩 out of your stake to the point that it doesn’t matter how much revenues it generates (let’s say trillions of dollars for this analogy)- it continues to issue billions of shares each year just so it can pay for its operations despite losing money year after year for the past 110 years! Now your shares are only worth $1.02 each (ie 98.8% worth LESS than when they were first issued) but everything you need to buy with those shares costs more. To add insult to injury that same company plays mind games with its shareholders by telling the markets, from time to time, that it will finally stop issuing more shares (ie stop the dilution) so that the shares can perk back up to maybe $1.15 a share but then turn around and start the printing press again (ie more dilution) in order to pay its money losing operations. This is basically (in the most simplest terms) what the Federal Reserve (ie a PRIVATE institution that has nothing to do with the Federal Government) does when it plays around with interest rates by lowering (or raising)them over and over again or does its quantitative easing schemes. I only wished that more people understand this basic concept of how the fiat currency manipulation works….
The Creature from Jekyll Island.
Nothing to do with the Federal Government? Not even a little bit?
You need to explain why Griffin is incorrect....you are familiar with our current system of “fractional reserve banking” correct? Not saying you are wrong...just explain your side of the argument.
https://www.thebalancemoney.com/what-is-fractional-reserve-banking-4590236
https://www.investopedia.com/terms/f/fractionalreservebanking.asp
To get us started: https://www.reddit.com/r/Anarcho_Capitalism/comments/z82ew2/does_a_bank_actually_lose_money_from_a_loan/
Also the Fed set the bank reserve requirement ratio to 0% in 2020:
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
You need me to explain why this, >"little of tangible value that is actually lost"< is incorrect? Really?
you are familiar with our current system of “fractional reserve banking” correct?
I am familiar. Does it mean Griffin's claim is correct?
My economics professors haven't given me a satisfactory answer, so I would like to ask you guys: if a bank can loan 1000$ from a 100$ deposit, what is the issue if I default on my loan from the "extra" created money? The whole fractional reserve system seems kind of a scan to me?
A bank can't loan $1000 from a $100 deposit.
They’ll binge watch streaming services through the hard times by way of their government provided ‘benefits’.
I’m serious...enlighten us...I am not an expert. With a 0% reserve requirement and a bank run the bank goes under and no actual bank money is lost?? (The depositors’ money gets wiped out, not the bank per se...they go BK and start over). The people with the loans make out? No more payments if another bank doesn’t buy the “assets”/loans? Just bad credit for them? More info. needed.
If a bank loans you money and you default, there is a loss.
😆😂🤣😜
Sure, true if the bank remains solvent then it is their loss...but if there is a bank run and the bank goes down then it become s depositor loss after FDIC limits (unless you are a depositor at Silicon Valley Bank then the Feds step in to cover the losses of over $250K with “funny money”). So maybe it a definition of “loss” problem for Griffin...he is thinking “further upstream” at The Fed (which is currently running in the red).
https://crsreports.congress.gov/product/pdf/IN/IN12081
https://www.smithanglin.com/blog/how-does-the-federal-reserve-create-money/
I guess I need a good flow chart of U.S. currency creation & destruction (and debt monetization). “Monetary Policy for Dummies”?? ;-)
So maybe it a definition of “loss” problem for Griffin..
Yes, his silly claim is a problem.
FRiend this happens all the time. ALL the time. And given the direction of taking on digital currency— losses of the favored banks will be given a magical “book entry” disappearance of the unpaid obligation. Fractional reserve banking and digital currency controlling individual deposits, valuation and tracking normally private transactions— all bode for a worsening of financial abuse of this PRIVATE bank chartered by Congress to “manage” our currency. US money does not say Bank of the United States— it says “Federal Reserve Note”— meaning our MONEY is simply checks of the Fed Reserve— not backed by anything since the Congress abrogated it’s Constitutional responsibility for the Currency.
the Federal Reserve (ie a PRIVATE institution that has nothing to do with the Federal Government)
Nothing to do with the Federal Government? Not even a little bit?
———————————————————————————————————————————
The (preordained) appointment of The Federal Reserve Chairman by a U.S. President and confirmed by the US Senate is Kabuki theater made to appear as if it’s somehow tied to the US Government. As anyone that follows these things….the Federal Reserve is a private institution owned by banks (both domestic and international) yet to what degree no one truly knows because the US Government is NOT allowed to audit their books. We’re simply instructed to go their “website” and believe whatever BS they post there like what are the assets they’re purchasing, how much and when. Most organizations that try to pull that off are charged with securities violations….ala Eron and Bernie Madoff. The fact that 98% of the US population isn’t aware of this should be telling and terrifying enough!
Who gets the earnings?
yet to what degree no one truly knows because the US Government is NOT allowed to audit their books.
They're audited every year.
https://www.federalreserve.gov/aboutthefed/audited-annual-financial-statements.htm
We’re simply instructed to go their “website” and believe whatever BS they post there like what are the assets they’re purchasing, how much and when.
You don't believe their reports?
Most organizations that try to pull that off are charged with securities violations…
They post their financial info more frequently than any organization.
It’s all 1s and 0s Todd.
Fractional reserve banking.
A lot of is magicked out of thin air.
It’s a crumby system in my opinion and one that will collapse.
It always has in history if you look at the last few thousand years.
Fiat money they call it. Money out of thin air.
Griffin is not wrong. His book is a seminal book.
It’s a complex topic...
Also you might want to check out “End The Fed” by Ron Paul.
booo hisss
They’re audited every year.
https://www.federalreserve.gov/aboutthefed/audited-annual-financial-statements.htm
We’re simply instructed to go their “website” and believe whatever BS they post there like what are the assets they’re purchasing, how much and when.
You don’t believe their reports?
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Anyone who has done plenty of audits can tell that what they (Fed) post (an audit by KPMG no less) is one of a shell type entity to give the impression of something that does not truly demonstrate who truly owns the said entity plus their internal operations (including their PPT) plus “non-related party(ies) transactions…etc”. If you believe this nonsense they “publish” for public consumption then I also have ocean front property to sell you in….Kansas!
A lot of is magicked out of thin air.
Every loan is fully funded. Not magic.
It’s a crumby system in my opinion and one that will collapse.
It existed under gold and silver standards. Not magic.
Griffin is not wrong. His book is a seminal book.
His claim that a default causes no loss, "since most of the money originally was created out of nothing" is beyond moronic.
Their audit is just like an audit of IBM. The IBM audit doesn't tell you who owns IBM or describe their internal operations or “non-related party(ies) transactions…etc”.
For the record, the Fed is owned by the US government.
If you believe this nonsense they “publish” for public consumption
It's more believable than your nonsense....low bar, I know.
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