Thanks Vulcan59!
that was a very good video! Don’t want to spoil it for anyone, but that remark at the end of the video, if 3 of the comercial banks fail, it represents a drop of the money supply of 31% which is equivalent to what happened when 9000 banks failed between 1929 and 1933, was rather shocking.
And given how interconnected they’re today, it’s truly simple for that to happen.
that was a very good video! Don’t want to spoil it for anyone, but that remark at the end of the video, if 3 of the comercial banks fail, it represents a drop of the money supply of 31% which is equivalent to what happened when 9000 banks failed between 1929 and 1933, was rather shocking.
And given how interconnected they’re today, it’s truly simple for that to happen.
I can give a simple example to show how new money is created using lending.
Starting with a basic cash withdrawal from an account that has a credit balance to give an initial example:
1. A withdrawal slip is filled out for the amount requested.
2. The cashier records the break down of cash that has been handed out on the withdrawal slip and gives you the cash.
In this example, the cash recorded is the thing of value that is being exchanged for the withdrawal slip.
To change it up a bit, a bank cheque is requested instead of the cash:
1. A withdrawal slip is filled out for the amount requested.
2. The cashier types up a bank cheque for the amount and records the details of the bank cheque on the withdrawal slip and hands over the bank cheque.
In this example, the bank cheque is the thing of value that is being exchanged for the withdrawal slip.
Financial institutions have similar internal vouchers like withdrawal slips. In the case of a loan or mortgage, here's what happens:
1. A new account is opened with a $0 balance.
2. A withdrawal slip is filled out with the amount of the loan/mortgage. The new account is overdrawn by the amount of the loan/mortgage.
3. The person processing the loan records the loan/mortgage contract number on the withdrawal slip.
In this example, the thing of value that is being exchanged is the contract and the contract has no value without the signature of the borrower. Boom. The bank has just created money and the borrower has basically given the valuable consideration to the bank with their signature on the contract.
Next the bank does another transaction where they either fill out an internal deposit form to put the loan funds into another account for the use of the borrower or they fill out a bank cheque to give to the borrower for purchases but in both instances the loan/mortgage contract is still recorded as the source of the value that is being exchanged.
Basically banks can't create new money without borrowers.
Starting with a basic cash withdrawal from an account that has a credit balance to give an initial example:
1. A withdrawal slip is filled out for the amount requested.
2. The cashier records the break down of cash that has been handed out on the withdrawal slip and gives you the cash.
In this example, the cash recorded is the thing of value that is being exchanged for the withdrawal slip.
To change it up a bit, a bank cheque is requested instead of the cash:
1. A withdrawal slip is filled out for the amount requested.
2. The cashier types up a bank cheque for the amount and records the details of the bank cheque on the withdrawal slip and hands over the bank cheque.
In this example, the bank cheque is the thing of value that is being exchanged for the withdrawal slip.
Financial institutions have similar internal vouchers like withdrawal slips. In the case of a loan or mortgage, here's what happens:
1. A new account is opened with a $0 balance.
2. A withdrawal slip is filled out with the amount of the loan/mortgage. The new account is overdrawn by the amount of the loan/mortgage.
3. The person processing the loan records the loan/mortgage contract number on the withdrawal slip.
In this example, the thing of value that is being exchanged is the contract and the contract has no value without the signature of the borrower. Boom. The bank has just created money and the borrower has basically given the valuable consideration to the bank with their signature on the contract.
Next the bank does another transaction where they either fill out an internal deposit form to put the loan funds into another account for the use of the borrower or they fill out a bank cheque to give to the borrower for purchases but in both instances the loan/mortgage contract is still recorded as the source of the value that is being exchanged.
Basically banks can't create new money without borrowers.
michaelrc
Dagobah Resident
Damn it, this shit is moving like light speed and in my own state. Can't even fathom, of course they say it's voluntary. . .of course.
Michigan can't even get it's act together to pay it's citizens their unemployment checks but they can pass legislation like this. Wtf
Michigan Passes Controversial Bill To Microchip Humans Voluntarily "To Protect Their Privacy"
The chips, roughly the size of a grain of rice, are implanted into the hands of employees and act as a replacement for I.D. badges, timecards, usernames and passwords for security clearance, and even credit cards.
www.zerohedge.com
Michigan can't even get it's act together to pay it's citizens their unemployment checks but they can pass legislation like this. Wtf
Michigan Passes Controversial Bill To Microchip Humans Voluntarily "To Protect Their Privacy"
The chips, roughly the size of a grain of rice, are implanted into the hands of employees and act as a replacement for I.D. badges, timecards, usernames and passwords for security clearance, and even credit cards.
ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com
My guess is this. They will say "If you don't have chip, you won't get unemployment checks". So people line up for the chip and then they will say "Oops! we ran out of money". As long as people are stupid enough to believe in BS of "us vs them", they can do whatever they want.Damn it, this shit is moving like light speed and in my own state. Can't even fathom, of course they say it's voluntary. . .of course.
Michigan can't even get it's act together to pay it's citizens their unemployment checks but they can pass legislation like this. Wtf
michaelrc
Dagobah Resident
Yes Seek10 you have it correct. It's the camel's nose beneath the tent always.
"Would you like fries with that", sorry fresh out because of covid. "Where's the beef", sorry fresh out because of covid". No cash transactions, plastic only because of covid. 8 register fast lanes open for our customers with biometrics, 2 open for plastic.
Here is the interview with Ken Honda - AKA Zen millionaire- the author of book Happy Money - pretty superficial concept but there are some interesting ideas making it worth posting here.
The first few minutes of introduction is in Croatian but the interview is in English
The first few minutes of introduction is in Croatian but the interview is in English
