EU Spring.

[spicy]

It seems to me to becoming quite fashionable at the moment to spring clean amongst the EU leaders. It seems Papandraus has said he's going to go, now they are after Berlusconi's head. With a debt six times as large as Greece changing leader has been a long time coming for Italy. Sarkozy will go when France hold their election. How long before Angela Merkal leaves the top job???

[Labour leftie luvvie]

It seems to me to becoming quite fashionable at the moment to spring clean amongst the EU leaders. It seems Papandraus has said he's going to go, now they are after Berlusconi's head. With a debt six times as large as Greece changing leader has been a long time coming for Italy. Sarkozy will go when France hold their election. How long before Angela Merkal leaves the top job???

Oh just like the arab spring? No need, we all have democracy here and these leaders departing are just a sign of the natural order,as per our poor dear gordon having to go because the public just did not understand that he is indeed the man who saved the world and especially britain.
If only men of such vision could stay in place forever but that is democracy for you.

[Big Fat Frosty]

so your a blair man then i see....

[Lady Murasaki]

Berlusconi facebooked to say he wasn't going.

i mean, jeez!

facebooked!!!

[Fletch]

Berlusconi facebooked to say he wasn't going.

i mean, jeez!

facebooked!!!

How come you got him on your facebook?

[Lady Murasaki]

Berlusconi facebooked to say he wasn't going.

i mean, jeez!

facebooked!!!

How come you got him on your facebook?

lol, i have contacts!

it was just on the news

the man's a prat!

[Fletch]

Berlusconi facebooked to say he wasn't going.

i mean, jeez!

facebooked!!!

How come you got him on your facebook?

lol, i have contacts!

it was just on the news

the man's a prat!

a randy pratt

This EU thing will go on until banks have converted their virtual money in to hard assets, then the population will spend forever paying for it

[Lady Murasaki]

This EU thing will go on until banks have converted their virtual money in to hard assets, then the population will spend forever paying for it

don't they have to invest to do that? no one's investing.

[Fletch]

This EU thing will go on until banks have converted their virtual money in to hard assets, then the population will spend forever paying for it

don't they have to invest to do that? no one's investing.

No, the 'money' that is leant is 'created' by banks. They just add some numbers to a screen and credit it to the Country. The Country then credits the bank with the interest plus giving them a bond repayable in x number of years time.

The original 'money' is created by using financial instruments and leverage. That means a bank can lend up to 10, 20, 30 even 50 times the actual capital it has.

Once the Countries have the credit, the banks can then insist they sell off assets such as lucrative public business or contracts, gold, anything really as repayment for the created money.

It's all numbers on a screen and all that is required is a name on the contract who they can extract the money from.

Have a look at fractional reserve banking. Biggest going.

[Lady Murasaki]

ok, i'll admit i don't understand all that!

[Fletch]

ok, i'll admit i don't understand all that!

It does get a bit complicated

Banks 'create' money out of nothing. It's created on computer screens. They do this by fractional resere banking. That means they only need a fraction of the money they lend out.

If they have 1 pound, they use that to create 10 times, 20 times as much and so on. So 1 pound deposit at the bank means they can create and lend out 10 pounds or 20 pounds. The ratio varies.

All money is issued as debt by banks. That's why we are in the mess we are in.

There's more to it but that's the basics of it. I'll tell you more when we have time

[Big Fat Frosty]

[Guest]

ok, i'll admit i don't understand all that!

It does get a bit complicated

Banks 'create' money out of nothing. It's created on computer screens. They do this by fractional resere banking. That means they only need a fraction of the money they lend out.

If they have 1 pound, they use that to create 10 times, 20 times as much and so on. So 1 pound deposit at the bank means they can create and lend out 10 pounds or 20 pounds. The ratio varies.

All money is issued as debt by banks. That's why we are in the mess we are in.

There's more to it but that's the basics of it. I'll tell you more when we have time

Banks borrow money from a central bank or other banks. It doesn't appear magically on a screen. There is a rigour process, which is carried out and the banks are charged at the inter-bank interest rate.

If banks could create money how did they make and still make losses?

[Fletch]

ok, i'll admit i don't understand all that!

It does get a bit complicated

Banks 'create' money out of nothing. It's created on computer screens. They do this by fractional resere banking. That means they only need a fraction of the money they lend out.

If they have 1 pound, they use that to create 10 times, 20 times as much and so on. So 1 pound deposit at the bank means they can create and lend out 10 pounds or 20 pounds. The ratio varies.

All money is issued as debt by banks. That's why we are in the mess we are in.

There's more to it but that's the basics of it. I'll tell you more when we have time

Banks borrow money from a central bank or other banks. It doesn't appear magically on a screen. There is a rigour process, which is carried out and the banks are charged at the inter-bank interest rate.

If banks could create money how did they make and still make losses?

That's exactly what happens.

Inter-bank lending is something that goes on to cover their positions and/or because they have run out of margin on their leverage ratios.

Banks create money from nothing, it is created as debt and as long as someone signs the agreement to the debt they can do it as often as they like. (within their leverage ratios)

This is what happened to Northern Rock. They had become so greedy that they had insufficient capacity to maintain day to day running so had to borrow to stay afloat. When word got out, the inter-bank lending and the wholesale market refused to lend any more. The public withdrew cash and they were left with no option but to ask for government help.

The whole banking system is a corrupt and obscure den of inequity. It's designed so the few become wealthy at the expense of the rest. FIAT currency is worthless paper; that's why gold is popular.

"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." — Rothschild Brothers of London, 1863

[Maddog]

While banks do create money out of nothing, there is a limit to how much they can create. Once they are loaned out to their reserve ratios (It's the american term I am more comfortable with), they can no longer creatye more wealth, until they have more deposits or repayments to loan out. Right now, banks are loaning much less, as they are worried about getting repaid (I don't blame them, as this curent deal in greece will do just that). With credit being dried up, and/or shoved into countries that need it to stay afloat, it is not available for corporations and others to expand operations.

That's why Europe especially is looking to the Chinese for more loans. Their banks have lost the capacity to create new wealth.