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how money is made

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how money is made

Postby boomerang » Fri Feb 26, 2016 12:01 am

I thought I give robin hood a helping hand in explaining how money is made and who makes it

long doco but worth it...

enjoy

Century of Enslavement: The History of The Federal Reserve

https://www.youtube.com/watch?v=5IJeemTQ7Vk
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Re: how money is made

Postby erolz66 » Fri Feb 26, 2016 12:40 am

I do not personally disagree with the arguments on 'how money is made'. What I disagree with is this idea that because of how money is made it means Greece could have stayed out of the Euro, and spent billions on foreign goods and non wealth creating vanity projects, failed to address it's underlying competitiveness vs other countries and come the global economic downturn of 2008, everything would have been fine in Greece, because it could just 'print more money'.
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Re: how money is made

Postby GreekIslandGirl » Fri Feb 26, 2016 1:01 am

This is why Britain has stayed out of the euro and it is what props it up - the fact it can print money and give to the banks. People are mired in debt - huge debts - but the printing machines drone on and the banks are reloaded. Quantitative easing ....

http://www.express.co.uk/news/uk/484725 ... -DRIFTWOOD
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Re: how money is made

Postby Robin Hood » Fri Feb 26, 2016 7:40 am

erolz66 wrote:I do not personally disagree with the arguments on 'how money is made'. What I disagree with is this idea that because of how money is made it means Greece could have stayed out of the Euro, and spent billions on foreign goods and non wealth creating vanity projects, failed to address it's underlying competitiveness vs other countries and come the global economic downturn of 2008, everything would have been fine in Greece, because it could just 'print more money'.


I can see you have spent time on the subject and good for you ...... most people don't bother but still express an opinion because the idea that private, commercial banks create currency out of nothing seems absolutely ridiculous!.

I don't think you are following this through. If you check how the US economy worked prior to the invention of the FED (and its predecessors) that is exactly how it worked, They traded then ..... in gold. The economy ran on Green Backs which were created only by the government and many of those Green Backs are still around today. If you have this sort of system you have no need to borrow from privately owned banks. All this does is to make the bankers rich and transfers wealth from the poor (latterly the middle classes) to the rich and now the super rich. Check out the latest figures on who holds all the Worlds wealth ........... it is frightening and all comes back to the fraud of the bankers. :x
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Re: how money is made

Postby Robin Hood » Fri Feb 26, 2016 6:43 pm

boomerang wrote:I thought I give robin hood a helping hand in explaining how money is made and who makes it

long doco but worth it...

enjoy

Century of Enslavement: The History of The Federal Reserve

https://www.youtube.com/watch?v=5IJeemTQ7Vk


This is informative and is also quite a long watch, although it is broken down into 5 programmes each covering a specific aspect of the subject. Several well know 'financial' types interviewed. It is entertaining as well as informative.

http://topdocumentaryfilms.com/hidden-secrets-money/
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Re: how money is made

Postby Robin Hood » Fri Feb 26, 2016 9:03 pm

Boomerang:

An interesting video, more on the society that the banking and financial system have been part of creating, than banking itself. An award winning documentary.

Four Horsemen ........

https://www.youtube.com/watch?v=5fbvquHSPJU
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Re: how money is made

Postby Pyrpolizer » Sat Feb 27, 2016 5:09 pm

There's no doubt we are continuously being cheated from those who print the money.
It puzzles me how so many countries in the EU are currently using the Euro having assigned authority to EU's Central Bank to print money without accounting to anyone and hence rip off everyone.
Are all the European countries THAT stupid??
On the other hand the Banking system is such that enables Banks that do not even make profits to exist, and continue to exist for many many years, by consuming people's deposits.This is what actually happens in Cyprus right now! It's amazing how Cypriot Banks continue spending mercilessly while at the same time they announce losses!

The easy solution for everyone is to convert their money to something else.
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Re: how money is made

Postby GreekIslandGirl » Sat Feb 27, 2016 5:36 pm

Pyrpolizer wrote:There's no doubt we are continuously being cheated from those who print the money.
It puzzles me how so many countries in the EU are currently using the Euro having assigned authority to EU's Central Bank to print money without accounting to anyone and hence rip off everyone.
Are all the European countries THAT stupid??
On the other hand the Banking system is such that enables Banks that do not even make profits to exist, and continue to exist for many many years, by consuming people's deposits.This is what actually happens in Cyprus right now! It's amazing how Cypriot Banks continue spending mercilessly while at the same time they announce losses!

The easy solution for everyone is to convert their money to something else.


The Royal Bank of Scotland, propped up by the UK Taxpayer, has just announced its eighth year of successive losses and no one cares! :roll:

Markets: FTSE shrugs off RBS slump on eighth successive annual loss


http://www.theweek.co.uk/65033/markets- ... nnual-loss
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Re: how money is made

Postby Robin Hood » Sat Feb 27, 2016 7:18 pm

Pyrpolizer:
It puzzles me how so many countries in the EU are currently using the Euro having assigned authority to EU's Central Bank to print money without accounting to anyone and hence rip off everyone.

It is not really surprising! What is surprising is just how few people are actually aware of how money is created and how the banking system works. It has been put at about one in every ten thousand of the general population. I have tried to explain for years and have had nothing but ridicule, abuse and accusations of being a conspiracy theorist. I am not talking about dumb people but highly intelligent people including PhD’s, MP’s, accountants (they are the worst) and even those who make their living out of banking and banking ‘products’, as well as the usual know-all dumb asses! :x
Are all the European countries THAT stupid??

Basically ..... YES! This is why Varoufakis managed to piss off Christine Lagard. He was talking economics and she was talking banking. He said that after he gave his argument to the EU/IMF/ECB Troika, which he had prepared assuming the people he was talking to had some clue about economics, they just stared blankly at him. They didn’t understand a word of what he was talking about. He said that he could have sung the Lithuanian National Anthem and it would have evoked more of a response. :roll:
On the other hand the Banking system is such that it enables Banks that do not even make profits to exist, and continue to exist for many, many years, by consuming people's deposits. this is what actually happens in Cyprus right now! It's amazing how Cypriot Banks continue spending mercilessly while at the same time they announce losses!

Not strictly true. Once you pay your ‘money’ into a bank it is no longer yours, it belongs to the bank, all you have in your account is an IOU. In fact what you pay in is, in turn, also an IOU but one that should be able to be converted into paper money from your account or transferred to another account. What happened in Cyprus when they imposed the ‘bail-in’ was that the bank refused to settle their debts to their depositors. In short ..... they defaulted on their liability to repay the loan you made to them! But, because the banks have no assets, the clients simply become unsecured creditors of the bank.

The ‘losses’ they announce are ONLY paper losses. Think about it ..... how can you lose something you never had?

When the banks take your money the accountants call that a ‘liability’ because although they still have your money they have to repay it at some point. (theoretically) :roll: But the ‘money’ they create out of thin air they consider an ‘asset’, even though it never existed until they created it as a simple book keeping entry and will disappear off the books when it is repaid. The banks make nothing out of this procedure, their only profit comes from the interest.

Banks correction ..... commercial banks )rarely loan without collateral (unless you are ‘someone’ in Cyprus) if you default they seize the collateral. So, the banks always make a profit! If the value of the collateral drops below the debt they invoke a ‘margin call’ i.e. they demand more collateral or you lose what you have deposited as security.
The easy solution for everyone is to convert their money to something else.

And do it quickly before they introduce their cashless society! :o
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Re: how money is made

Postby Pyrpolizer » Sat Feb 27, 2016 11:22 pm

Robin Hood wrote:Not strictly true. Once you pay your ‘money’ into a bank it is no longer yours, it belongs to the bank, all you have in your account is an IOU. In fact what you pay in is, in turn, also an IOU but one that should be able to be converted into paper money from your account or transferred to another account. What happened in Cyprus when they imposed the ‘bail-in’ was that the bank refused to settle their debts to their depositors. In short ..... they defaulted on their liability to repay the loan you made to them! But, because the banks have no assets, the clients simply become unsecured creditors of the bank.

The ‘losses’ they announce are ONLY paper losses. Think about it ..... how can you lose something you never had?



I think we discussed this before, to some points I agree with you to some I disagree or disagree partially.
This is one of the points I disagree partially. There are rules to set up a Bank. The major shareholders put down huge amounts of money to set it.
You may say that the next step is to start having people's deposits to initiate the process of making money out of nothing.
This is not always the case. There are cases the shareholders themselves have so much money that they don't need any deposits.
That was the case of the Arab Bank we had here in Cyprus a few years ago. They were NOT interested to get deposits! All they were interested for was to give loans.

Secondly if the Bank is not making profits, it has 2 options:Either to go bankrupt or get sold. And when they do get sold they still have assets like buildings etc. In this case they get sold for less money than what the major shareholders paid to set it on the first place.So who are the losers here, the depositors or the shareholders?
This is what happened with Arab Bank. Same happened with the local Barclays Bank which was sold for the ridiculous price of only 1 million CY pounds which was much less than her assets,and much less than the money the shareholders had paid to set it up.
Notice that the minimum amount to setup a Bank here in Cyprus is 5 million Euros
More info here:
http://www.centralbank.gov.cy/nqcontent ... 04&lang=en

The problem imo starts at the point the Banks have gone bankrupt ALREADY, hence they cannot be sold, but they just keep them running while they continue crunching their depositors money. This is what I think happens right now here in Cyprus and possibly other parts of the world, e.g the Scottish Bank that GIC mentioned before.
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