Is fractional reserve banking legal?

opinions4u

Southend1 wrote: »

Where does it come from then?

Savers.

Typically deposit and current accounts.

Or in the world of wholesale funding, pension funds.

borussiaboscombe

valhaller, how do i move my post then?

borussiaboscombe

opinions 4u and southend1, please look up how fractional reserve works, im not making this up. if its savers then where do they get the money from in the first place?

ValHaller

borussiaboscombe wrote: »

valhaller, how do i move my post then?

either ask the moderators, which is hit and miss or repost your opening post on the other forum. If you do that, it is cross posting, which is a bit naughty, but if you come back here and edit your opening post to say that you have restarted the topic - use a red bold font or something so it is obvious - then you will have dealt with the downside of crossposting. I'll come back if you are reasonably quick and add a link to your new thread.

borussiaboscombe

i have now moved this post!

Southend1

borussiaboscombe wrote: »

opinions 4u and southend1, please look up how fractional reserve works, im not making this up. if its savers then where do they get the money from in the first place?

I know you're not making it up. Money creation is an accounting trick by the private banks. I was wondering if opinions4u would have a credible alternative explanation but clearly he/she doesn't as s/he believes it comes from savers deposits!

WellKnownSid

Southend1 wrote: »

I know you're not making it up. Money creation is an accounting trick by the private banks. I was wondering if opinions4u would have a credible alternative explanation but clearly he/she doesn't as s/he believes it comes from savers deposits!

It's not an accounting "trick", it's just a balance sheet.

borussiaboscombe

it doesnt matter what it is, the fact of the matter is that banks create money out of thin air, devaluing the economy and expecting us to pay back something we obtain through work, plus interest on top, something is inherently wrong here! the other interesting point in all this is that there is only sufficient money in circulation to pay the debt, if everyone paid back all that was borrowed there would be no money left. the money required for interest doesnt exist either. this is absolutely absurd!

borussiaboscombe

all it can possibly achieve is what we have seen for years, the rich get richer and the poor poorer.

terryw

borussiaboscombe wrote: »

all it can possibly achieve is what we have seen for years, the rich get richer and the poor poorer.

The rich get richer and the poor get.........children.

A joke by the way to save flaming.