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FLYMETOTHEMOON8
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Posted on Thu, Nov 25, 2010 17:36

Fractional Reserve Banking System. Points to consider, purely my own observations from various sources of reliable data:- 1. Creates money out of debt (thin air) 2. Since the Federal Reserve came into existence money has devalued 96% 3. Inflation is the hidden Tax. 4. World physical currency held globally is only 3% 5. 97% of the World’s currency exists only in computers (thin air) 6. Creates inevitable global crises of ever increasing magnitude (snowball effect) 7. The Federal Reserve Bank is not a Bank and it has No Reserves. In a nutshell, how it works simply put: * The Government needs to raise Funds so * The Federal Reserve receives Government Treasury Bonds(just paper) * In exchange for Fiat money bank notes (more paper – thin air) * The printed paper and the Government Bonds have no value in reality. * They are worthless not secured with gold or any physical commodity. * Based on this ever increasing mountain of thin air, bank notes are distributed to Bankers Internationally. * The Federal Reserve Rule is that each Bank retains 10% on deposit. * The other 90% is loaned to another Bank who retains 10% * The pattern is repeated cascading down the Global Banking System. * Resulting in the original amount of fiat money multiplying 9 X * Billions worth of thin air have turned into trillions worth of thin air. * Catastrophe obviously looms large. * At the bottom of cascading thin air the little people are borrowing. * Their borrowing is mostly based on bricks and mortar security. * Who then is the blatantly careless fool and perpetrator of fiendish folly? * When crises hit the little man may lose all. * The power-hungry Banking Cartel just begins again on their next fix. * Governments of the western world have been creating money out of debt – Big Time. * Therefore, how can they be absolved from responsibility of world financial collapse and the consequences of such a disaster. * The little people are just the expendable pawns in a very big game. * Never have so many been violated by so few. (Winston would say) * Greed and power has blinded them to the point of insanity. * Yes, the lunatics are running the Asylum. I know you will say I am being simplistic and cynical – "those cynical men who say that democracy cannot be honest and efficient" — F. D. Roosevelt I am not alone by that definition, because there is nothing honest or efficient in the Fractional Reserve Banking System and that is self-evident for all to see. Philomath


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billzeke
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Posted on Wed, Dec 01, 2010 07:31

Quoting FLYMETOTHEMOON8:

Nice....but that large gain from thin air is the problem. Every man and his dog has been on the see-saw of inflation,deflation / property and gaining from thin air, including me. Like magic the gain could disappear the same way it appeared but in reverse. Gold...you can't eat it and you can't live in it. Its worth as world currency is debatable and I am no fan but it is tangible value not thin air. So you believe you are sitting pretty my friend - good for you and for both our sakes I hope the seat remains comfortable ad infinitum. Philomath.

Not Gold, but Silver is what you want to own. Much larger moves percentage wise than gold; and Silver, currently at about $28, up from the mid $3 range is still no where near it's record highs of the late '70s of around $40/oz. Of course any commodity is good in these times. They are all priced in dollars which are being trashed and deflated. They have to go up. I just think Silver bullion and silver coins are the best vehicles to maximize profits.
 
Inflation will be back soon enough and then the commodities will move up even further along with interest rates. SHORT the long term Treasuries. You can accomplish that by buying "TBT" which will give you a 2 for 1 bang for the buck when Interest rates start rising again...



JMHO. Do your own DD...



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wwww12345
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Posted on Tue, Nov 30, 2010 15:28

It seems to me that the hotel proprietor needs to take a marketing class. If the hooker had been in the room when the tourist viewed the room the tourist would probably have never left the town and the town not only would be debt free but it would have been several hundred dollars richer. In fact, if he hooker was cute, the tourist may had stayed a month or two they might have been able to build a new school.


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FLYMETOTHEMOON8
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Posted on Tue, Nov 30, 2010 14:48

Nice....but that large gain from thin air is the problem. Every man and his dog has been on the see-saw of inflation,deflation / property and gaining from thin air, including me. Like magic the gain could disappear the same way it appeared but in reverse. Gold...you can't eat it and you can't live in it. Its worth as world currency is debatable and I am no fan but it is tangible value not thin air. So you believe you are sitting pretty my friend - good for you and for both our sakes I hope the seat remains comfortable ad infinitum. Philomath.


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FLYMETOTHEMOON8
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Posted on Tue, Nov 30, 2010 14:24

I am just a simple soul Deke and like everyone else I would prefer to be part of the solution but unfortunately I am part of the problem. Can you suggest a solution? Thank you for your interest.


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FLYMETOTHEMOON8
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Posted on Tue, Nov 30, 2010 14:22

What a lovely story called The Money Roundabout. Before the Roundabout moves it has to be pushed, energy is exerted for the reward of the ride. Please do not take that out of context. In this story someone exerted energy mental or physical or both to gain the original $100 before the roundabout moved on its merry way. Thank goodness for energetic rich tourists like Billzeke and all wealth creating entrepreneurs to get the ball rolling round the world. Philomath


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FLYMETOTHEMOON8
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Posted on Tue, Nov 30, 2010 14:02

I am just a simple soul Deke and like everyone else I would prefer to be part of the solution but unfortunately I am part of the problem. Can you suggest a solution? Thank you for your interest.


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wwww12345
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Posted on Mon, Nov 29, 2010 18:21

Quoting billzeke:

5W's. There is no doubt in my mind who I am in the STIMULUS scenario. The RICH TOURIST of course. LOLOL...



OK, I will buy that. I was just worried for a minute that you might have been the guy at the guy at the Farmer's Co-op. Personally I think running the motel might have been the best job. lololol


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billzeke
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Posted on Mon, Nov 29, 2010 06:44

5W's. There is no doubt in my mind who I am in the STIMULUS scenario. The RICH TOURIST of course. LOLOL...



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wwww12345
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Posted on Sun, Nov 28, 2010 22:54

Quoting billzeke:

HOW THE SIMULUS WORKS!!!

 

Seems appropriate for this subject.

  

 

""It is a slow day in the small North Dakota   town of Casselton , and the streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit. 

A rich tourist visiting the area drives through town, stops at the motel, lays a $100 bill on the desk and says he wants to inspect the rooms upstairs before selecting one for the night. 


1. As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher. 
2. The butcher takes the $100 and runs down the street to retire his debt to the pig farmer. 
3. The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Farmer's Co-op. 
4. The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit. 
5. The prostitute rushes to the hotel and pays off her room bill with the hotel owner. 
6. The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything. 


At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves town.. 


No one produced anything. No one earned anything. However, the whole town is now out of debt and looks to the future with a lot more optimism. 


And that, ladies and gentlemen, is how Stimulus SHOULD work."" 



I am trying to figure out how you know all of this bill. Where did you fit in? lol good one


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ugottahaveheart
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Posted on Sun, Nov 28, 2010 22:22

Thank YOU wwww12345! The stimulus works depending on the multiplier effect. This is dependent on the likelihood that those who receive the stimulus dollars will spend those dollars immediately. An unemployed person with a family must put food on the table, and that individuals spending will multiply at a rate of about 1.7 whereas cutting taxes for people that do not need to spend the money, and can save it, yields only a .5 multiplier effect. This is only true if your economic problem is demand, which is true of this recession. There are other times when the problem is different.


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billzeke
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Posted on Sun, Nov 28, 2010 08:26

HOW THE SIMULUS WORKS!!!

 

Seems appropriate for this subject.

  

 

""It is a slow day in the small North Dakota   town of Casselton , and the streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit. 

A rich tourist visiting the area drives through town, stops at the motel, lays a $100 bill on the desk and says he wants to inspect the rooms upstairs before selecting one for the night. 


1. As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher. 
2. The butcher takes the $100 and runs down the street to retire his debt to the pig farmer. 
3. The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Farmer's Co-op. 
4. The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit. 
5. The prostitute rushes to the hotel and pays off her room bill with the hotel owner. 
6. The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything. 


At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves town.. 


No one produced anything. No one earned anything. However, the whole town is now out of debt and looks to the future with a lot more optimism. 


And that, ladies and gentlemen, is how Stimulus SHOULD work."" 



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wwww12345
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Posted on Thu, Nov 25, 2010 22:06

Aww yes, but it's so nice to borrow a few million of this paper money, pay it back in 15 years with money worth half as much, and wind up with some property worth twice as much as you paid. U might as well learn to play the game, it's the only game in town. There isn't enough gold in the world to pay once days worth of mortgages in the US. We really don't want gold to be worth 100M per oz, do we? And, besides, what makes gold worth more than rice, when you really get down to it. Gold , after all, is a artificial value, isn't it.


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