Conspiracy Theory Banking and how it actually works ...

[clogged]

You do realise that there is 100 times more paper gold than real stuff? So that means the same ounce has been sold 100 times.

So?

 

[Ripper]

So?

Imagine if everybody 3 out of 100 people wanted to take possession of their actual bullion at the same time.

 

[Bunk Moreland]

Imagine if everybody 3 out of 100 people wanted to take possession of their actual bullion at the same time.

Why would they do that?

They don't want the gold. They wants it's value.

 

[Ripper]

Why would they do that?

They don't want the gold. They wants it's value.

How can they have its value when 99 other people have the same claim?

 

[clogged]

I don't see the issue. If the information about how much gold there is to go around is freely available and people willingly buy 1/100th of a claim to the gold at the full price, then surely that is their choice?

 

[Dan Moody]

And as you probably know, it wouldn't take for all of us to withdraw our money for the system to collapse. It would only require a small fraction of us to do it, the banks are so highly leveraged. And what most people have no idea about is how close we came in 2008 after Lehman Brothers collapsed.

http://www.theaustralian.com.au/new...were-salted-away/story-e6frg6z6-1225882001496

There is plenty more info, all backed by reputable sources, in the thread linked to in my sig.

People ought to know this stuff.

This is incorrect. Self funding ratios are a lot better these days and you'll find nearly all major banks will be on an asset (lending) drive this year. While the interest rates are low, banks will be aggressive to lend.
The closest the major banks came to collapse was around 1996.
I am a banker

 

[JuddsABlue]

Ehhhh I wrote something long and stupid here

I'd rather learn more, despite not really being bothered by it all

 

[Smiling Buddha]

This is incorrect. Self funding ratios are a lot better these days and you'll find nearly all major banks will be on an asset (lending) drive this year.

Got any stats brah?

 

[Bunk Moreland]

How can they have its value when 99 other people have the same claim?

Because nobody ever claims it?

Why would they? They don't want it.

They want it's value, which exists by virtue of somebody wanting to purchase it from them.

 

[Ripper]

I don't see the issue. If the information about how much gold there is to go around is freely available and people willingly buy 1/100th of a claim to the gold at the full price, then surely that is their choice?

Because nobody ever claims it?

Why would they? They don't want it.

They want it's value, which exists by virtue of somebody wanting to purchase it from them.

LOL , listen to yourselves.

 

[clogged]

LOL , listen to yourselves.

I have. Do you ever listen to yourself?

 

[Dan Moody]

Got any stats brah?

Yep, my job is really fcuking sh1tting me. The pressure to achieve over and above targets will see many consumers walk out of a bank with a hell of a lot more than what they wanted.
E.g. Insurances on credit cards and personal loans that they don't need but will be talked into getting, super accounts that they don't need,
Loans will be dirt cheap, people will get themselves overcapitalised and pay shitloads of interest.
As I said, no chance in hell the big 4 will ever fall over

 

[Smiling Buddha]

Yep, my job is really fcuking sh1tting me. The pressure to achieve over and above targets will see many consumers walk out of a bank with a hell of a lot more than what they wanted.
E.g. Insurances on credit cards and personal loans that they don't need but will be talked into getting, super accounts that they don't need,
Loans will be dirt cheap, people will get themselves overcapitalised and pay shitloads of interest.
As I said, no chance in hell the big 4 will ever fall over

All very interesting but this does not include any stats to back up your earlier assertion about banks' self-funding ratios.

And I agree that the big banks won't fall over. They are 'too big to fail'. That's the problem.

 

[Dan Moody]

All very interesting but this does not include any stats to back up your earlier assertion about banks' self-funding ratios.

And I agree that the big banks won't fall over. They are 'too big to fail'. That's the problem.

The average self funding ratio is around 65% asset/liability. Banks have made a huge run on increasing deposits in the last 4 years.
This will change as Australians increase debt due to low interest rate, not just attributed to new home loans but topups and increased personal lending. Interest charges will be keeping the banks very profitable for years to come.
Good enough?

sent from my HTC ONE MAX

 

[Bunk Moreland]

This is actually a pretty neat little scene from Too Big To Fail which explains what I was on about earlier.



Now, think about the differences in Australia.

 

[Scallop Industry Thug]

This promising thread is getting too bitchy.

I went through school, got an honours degree, got a post grad degree and in 2008 I realised I knew NOTHING about how this society actually functioned. Since Ive been educating myself about economics and am still stunned at how this society maintains functionality.

The only thing holding it all up is the collective agreement to treat this IOU currency as real. That trust is breaking and won't hold for much longer.

Diamonds are not inherently worthless (what a laughable suggestion), and dollars are not merely paper.

As a commodity currency, I believe they are. They serve no useful purpose.

Other commodities such as food, clothing etc have some function beyond the contextual and subjective 'aesthetics'.

 

[Scallop Industry Thug]

I don't know of a school that doesn't teach commerce and economics.

Schools and unis train students in these subjects, but don't educate students in them.

 

[Smiling Buddha]

This promising thread is getting too bitchy.

I went through school, got an honours degree, got a post grad degree and in 2008 I realised I knew NOTHING about how this society actually functioned. Since Ive been educating myself about economics and am still stunned at how this society maintains functionality.

As a commodity currency, I believe they are. They serve no useful purpose.

I'm not sure what you mean by 'commodity currency'; here is a rundown of what I thought the term meant.

And diamonds do have industrial applications.

 

[Scallop Industry Thug]

I'm not sure what you mean by 'commodity currency'; here is a rundown of what I thought the term meant.

I mean it in the sense of a no-fiat tradeable asset that is tangible that has some use outside its financial value.

What Im saying is they arent a commodity currency as they have no useful function.

And diamonds do have industrial applications.

I didnt know that at all. Just did a bit of reading and yeah I'd call them a useful commodity.

Although much of their appeal lies in their subjective, temporary aesthetic value (kind of like fiat currency)

 

[Bunk Moreland]

This promising thread is getting too bitchy.

I went through school, got an honours degree, got a post grad degree and in 2008 I realised I knew NOTHING about how this society actually functioned. Since Ive been educating myself about economics and am still stunned at how this society maintains functionality.

The only thing holding it all up is the collective agreement to treat this IOU currency as real. That trust is breaking and won't hold for much longer.




As a commodity currency, I believe they are. They serve no useful purpose.

Other commodities such as food, clothing etc have some function beyond the contextual and subjective 'aesthetics'.

Economics is a great field to study. I'll be doing more of it when I finish my current course.

 

[nut]

Do Banks have too much power?

Why Cant I lend out money at 10 times more than I own? and then charge interest on something I invented? Why cant I "invent paper" money? Why cant I get a loan off the Reserve bank and lend it out at twice what it costs me?

Why do we allow Banks and the financial system control us???

Money = Debt

If we dont increase debt then we dont increase Money supply....

The current system will kill itself eventually. Money = Power ..... those that hold the power now wont want to fall off the ladder.

The current system requires growth.... with out growth it dies very quickly...

The system needs repair... its not sustainable. It is a ponzi scheme.....

It needs population growth and it needs increases in productivity.... no wonder they are talking about all us working until 70... why? to fund more debt.

Why did they want women back in the work force?.... to increase disposable income which increases the amount of borrowing a bank would lend to a couple which increased house prices... which increased Debt..... which increased the money supply.

All to give those at the top more money......

Why do the financial elite want LESS tax??? hmmm.... to move power from the state to the financial elite... by invreaseing disposable income.... allowing people to increase their Debt.

We are all slaves.....

 

[Bunk Moreland]

Pretty much the basic answer to all those questions is human beings will invariably act in a rational manner. Which means self interest.

That's been happening since Adam potted Eve.

 

[nut]

Pretty much the basic answer to all those questions is human beings will invariably act in a rational manner. Which means self interest.

That's been happening since Adam potted Eve.

Yes and those with the most power have the most self interest.

 

[Bunk Moreland]

Yes and those with the most power have the most self interest.

I don't know if that's necessarily the case, just their power allows them to fulfil it.

But I think all humans are basically the same. We can say "why do we allow banks to run our lives?"... and we could all swear off them... then one day, somebody would want to buy a patch of land or a business, a bank could make it happen for them, and they'd do it. Because it'll offer the individual long term security or prosperity. That's self interest.

Cooperative action will always give way to self interest eventually, not matter how wealthy or powerful (or not) the group is. We're wired for survival and there'll always be some who go beyond ensuring that at the expense of others. Anything that relies on people not to act in self interest is doomed to eventual failure.

 

[WinmarToLockett]

Has anyone mentioned the film INSIDE JOB yet?