Virtual money?

StevieJ

dopester wrote: »

Great. I'm glad we are back on track. I didn't want to challenge you at all but was unsure how to interpret it. The mix here, including your many witty contributions, all make the forum educational and good fun.

Dopester here is an interesting article from the FT not virtual money but interesting anyway.

http://www.ft.com/cms/s/0/be2dbf2c-d113-11dd-8cc3-000077b07658.html?nclick_check=1

mr.broderick

mewbie wrote: »

Thanks PN. Although I have pretended in the past to understand this, I really cannot be @rsed to look at links / videos / read pompous crap from self called 'experts' on this subject. But I found your explanation interesting and informative. And mercifully short on technical terms and. er. fairly short.

I'm sure we spent a little bit of time on this a few years back, sortofok era.
Remember? There was the youtube links to how banking 1st started, i really enjoyed that era of mse, it was pre fukwits.

mewbie_2

mr.broderick wrote: »

I'm sure we spent a little bit of time on this a few years back, sortofok era.
Remember? There was the youtube links to how banking 1st started, i really enjoyed that era of mse, it was pre fukwits.

Don't try to start off any trouble again Mr. B., I have climbed off my perch for tonight. And your 'remember' trap is way too obvious. Of course I don't remember, I was 'created' in July 08.

mr.broderick

mewbie wrote: »

Don't try to start off any trouble again Mr. B., I have climbed off my perch for tonight. And your 'remember' trap is way too obvious. Of course I don't remember, I was 'created' in July 08.

I don't know what i'd do without you

PasturesNew

My explanation didn't explain fractional reserve banking in all its complexities at all.... but it was an easy understandable primer in how you can create money from nothing, how the money goes round - and how it can suddenly stop... which once that's sunk in might be enough for some people to go onto the full blown fractional reserve banking links at a future point.

But the OP was really interested in how money can be created from nowhere and I thought it sort of explained how you can appear to create money that doesn't exist and how a credit crunch can bring everything to a grinding halt. And more to the point how you can suddenly find you can't create any more magic money from nowhere.

Of course, what the banks/brokers were doing was far more complex, but people don't really want the ins/outs ... they just want a quick snapshot in their own language. Mine was more of a stick diagram.

mvengemvenge

PasturesNew wrote: »

My explanation didn't explain fractional reserve banking in all its complexities at all.... but it was an easy understandable primer in how you can create money from nothing, how the money goes round - and how it can suddenly stop... which once that's sunk in might be enough for some people to go onto the full blown fractional reserve banking links at a future point.

But the OP was really interested in how money can be created from nowhere and I thought it sort of explained how you can appear to create money that doesn't exist and how a credit crunch can bring everything to a grinding halt. And more to the point how you can suddenly find you can't create any more magic money from nowhere.

Of course, what the banks/brokers were doing was far more complex, but people don't really want the ins/outs ... they just want a quick snapshot in their own language. Mine was more of a stick diagram.

I'm sure most people understand that it's always been 'paper money', but I found your explanation of the process very educational, so thankyou.

bo_drinker

PasturesNew wrote: »

My explanation didn't explain fractional reserve banking in all its complexities at all.... but it was an easy understandable primer in how you can create money from nothing, how the money goes round - and how it can suddenly stop... which once that's sunk in might be enough for some people to go onto the full blown fractional reserve banking links at a future point.

But the OP was really interested in how money can be created from nowhere and I thought it sort of explained how you can appear to create money that doesn't exist and how a credit crunch can bring everything to a grinding halt. And more to the point how you can suddenly find you can't create any more magic money from nowhere.

Of course, what the banks/brokers were doing was far more complex, but people don't really want the ins/outs ... they just want a quick snapshot in their own language. Mine was more of a stick diagram.

So what happens now there's no more in the pot ???

shaven-monkey

i'll trade you this chicken for 3 shiny stones and an air rifle.

neverdespairgirl

PasturesNew wrote: »

My explanation didn't explain fractional reserve banking in all its complexities at all.... .

It was a brilliant explanation, thank you.

mvengemvenge

shaven-monkey wrote: »

i'll trade you this chicken for 3 shiny stones and an air rifle.

I wonder if we'll see the return of Noel Edmonds' Swap Shop???