Money creation: who creates money?

mr_fishbulb

debtcutter wrote: »

2) Do you genuinely believe that more people understand what fractional reserve banking is, than don't? If so, ask the next 10 people you meet to explain it.

You only need 1 person to give you an explanation. You can then lend out the explanation to the other 9 people

debtcutter

mr_fishbulb wrote: »

You only need 1 person to give you an explanation. You can then lend out the explanation to the other 9 people

Don't suppose you can explain the closed forum comments directed at me?

HAMISH_MCTAVISH

debtcutter wrote: »

Don't suppose you can explain the closed forum comments directed at me?

Sure.

We have an ongoing infestation of sock puppets who like to spam the board ramping gold and silver.

Any newbie who posts on monetary theory, currency devaluation, fractional reserve banking, etc is viewed with suspicion accordingly.

As it always ends up with silver ramping and a ban/thread deletion.

If you aren't the silver puppetmaster, then welcome to MSE.

For that matter, even if you are but can refrain from ramping precious metals and keep to economic topics, you'll probably remain welcome.

mr_fishbulb

debtcutter wrote: »

Don't suppose you can explain the closed forum comments directed at me?

People on this board are sceptical of people with low post-counts talking about fiat currency, because it is usually closely followed by telling people to buy precious metals as they are the true wealth, they will protect you from inflation, they will go up 500% in a year, yadda yadda yadda.

The closed forum part is that this Houseprice Board is hidden unless you have signed in. So unless you have an account, you don't know this board existed.

There are lots of people on this board who create additional accounts and the very first thing they do is post on this board replying to something, or post a new thread, and everyone wonders "How did they know to register to post that if they couldn't see this board before".

I see this thread is your first in the House Price board, and you have more in the Loans board. Personally I don't think you're here to ramp up precious metals, but some of the signs are there that you might be, so people's alarm bells started ringing.

Think of it as your bank flagging your account when it notices a pattern of spending associated with fraud. Sometime it isn't fraud, but sometimes it is

HAMISH_MCTAVISH

debtcutter wrote: »

So many people believe that banks lend customer deposits to other customers, earning the interest..

They do.

But then the other customers deposit the money, and it is loaned again, and again, and again. Withholding a fraction each time.

So at a 10% fractional reserve you create £1900 of credit money for every £100 of base money.

And at a 20% fractional reserve you create £400 of credit money for every £100 of base money.

We already know this though....

Did you want to discuss money supply in more detail?

Graham_Devon

I actually think many of you are jumping the gun on this one, which is a shame. The poster has been mostly in the debt forum as far as I can see.

The whole silver thing, as I stated on another thread is getting tiresome. Every single new poster is getting labelled by two or three, no matter what.

We want new posters on this board, so it would be a shame to keep sending them away after insulting them, just for posting something you may disagree with.

HAMISH_MCTAVISH

Graham_Devon wrote: »

I actually think many of you are jumping the gun on this one, which is a shame. The poster has been mostly in the debt forum as far as I can see.

I think my response was fair and balanced.

The whole silver thing, as I stated on another thread is getting tiresome. Every single new poster is getting labelled by two or three, no matter what.

Not every one. But to be fair, many of them are the silver socky. As I've proved often enough.

We want new posters on this board, so it would be a shame to keep sending them away after insulting them, just for posting something you may disagree with.

Agreed.

And TBH, I don't care who they are or what their views are.

If they stay on topic and debate politely, they'll be made welcome.

debtcutter

Right, I get you now.

I thought the guy talking about closed forums was saying I couldn't have signed up, which I thought was strange, as I obviously had.

I didn't even realise this part of the forum was closed, I just signed up, logged in and saw it when I was clicking through into the different sections (anything with the word debate will catch me eye)

@ HAMISH_MCTAVISH maybe I should have said "People don't realise that banks have the power to create money". I didn't word it very well, I hadn't read this section of the site before starting the thread, I have now, I accept most people posting in the debate section prob don't need to have the banking system explained. In "real life" I rarely encounter people that understand as well, so please forgive me.

I can assure you I will never suggest people buy minerals. At least I now understand why someone asked me about my thoughts on silver.

This thread got weird, fast.

Apologies to anyone that is annoyed/upset, apart from Purch, who just appears to be a bit paranoid.

Thanks for explaining all to me. Hopefully speak to some of you again in threads where my backside isn't being spanked by more experienced posters.

debtcutter

HAMISH_MCTAVISH wrote: »

I think my response was fair and balanced.

No problem with your post Hamish.

First person to explain the situation.

Thanks given .

No problem with people correcting me, arguing with me, telling me I'm preaching to the converted. It's a forum after all.

HAMISH_MCTAVISH

debtcutter wrote: »

No problem with your post Hamish.

First person to explain the situation.

Thanks given .

No problem with people correcting me, arguing with me, telling me I'm preaching to the converted. It's a forum after all.

No worries.