Cyprus-Forum.com

by **Robin Hood** » Mon Apr 25, 2016 7:04 pm

DT

I'm sorry but the inaccuracies that have been listed here are way off. Entertaining, but way off.

No collateral taken into account in the banks books? How do you think their Core tier 1 ratio is calculated if there are no risk weighted assets? Loans created with no capital??? A banks loan to deposit ratio is critical in understanding the condition of a bank. Why would that even be necessary if loans moved independent of deposits?

I'm not sure where to start....it's pretty much all wrong.

RH

Collateral has absolutely NOTHING to do with the creation of money ..... nor does Core tier 1 or any other facet of the way banks present their finances.

If you want to argue that capital is required to make loans ......... then you must disagree with the BoE , The FED , The Bundesbank and various respected economists? The loan to deposit ratio varies from Bank to Bank, the BoE makes it clear, very clear ...... ".... loans create deposits not the other way round!" Put simply, loans need to be created before there can be a deposit; this creates debt and in the process creates the same amount of new money in another account. Look at the bar graphs on the BoE bulletin ...... it could not be clearer!

Banks provide credit in exactly the same way as credit card companies, they grant you a credit limit, they do not put money into your account they simply give you credit.

We are dealing with a single aspect ..... money/currency creation. I don't think collateral/tier 1/M1 -M4/ liquidity/risk weighing/ leverage etc. is mentioned in the BoE bulletin on the subject or in the research paper into the subject by Prof. Werner and other economists, because in the context of money creation they are irrelevant.

These are things the banks do AFTER the numbers on the books have been created, it does not cover the process that created the money in the first place.

Paphitis

At last!!!!
Someone who knows the industry inside out and knows what he is talking about. Go right ahead DT and destroy that stupid Robin Hood and the fallacies he pushes about Banks being able to self fund themselves and create money from thin air as opposed to extending credit and IOUs!

Say bye bye now dude. All your theories and false narratives are about to be destroyed by a Back Room Financial expert and Banking consultant! You're fucked now you acrimonious bitter shit! I hope you learn from this! Because we don't need hundreds of anti Banking threads that you're renowned for. Seems to me that you have a personal vendetta.

RH

What interests me is that point in the BoE bar chart where a white 'loan' appears and a corresponding red 'deposit'. That bit of BoE information alone shows that the bank has no liability to repay. To me and to BoE and Werner that says that the money just appeared ..... but from where?

Your initial comment was related to a banking operation that occurred AFTER the loan was in place.

I am assuming you are reasonably intelligent; if you have only read just the BoE document you will now know how money is created by commercial banks and from an unimpeachable source? Do you still think that the way I described the process for Paphitis, as the BoE described it and, if you read the paper, that Prof. Werner presented as his findings and evidence ............".is pretty much all wrong" .....and ....."you are (still?) not sure where to start?" (I presume ... with an explanation why?)

by **erolz66** » Mon Apr 25, 2016 7:06 pm

Robin Hood wrote:Money, has an almost constant value. An ounce of gold/silver/platinum etc.will always be worth an ounce of gold/silver/platinum etc., it is the currency you use as a means of transfer of the wealth that varies. That is determined by ‘money markets’ and the amount that is being created by the banks.

I have been buying books and reading again

This time it is this one

http://www.amazon.co.uk/Money-Bubble-Ja ... k_ro_title

Anyway what it says in that book, which I have no reason to doubt, about this subject I think is relevant to the comment above.

The money bubble, page 22 wrote: The same ounce (31 grams) of gold that bought a good-quality toga in ancient Rome will buy a nice business suit today.

To me that really brought home the ability gold has to be a 'store of purchasing power' vs say paper money.

by **tsukoui** » Mon Apr 25, 2016 7:50 pm

You guys are totally missing the point, every coin in Britain has the monarch's image on it, thus currency conveys information, without the proper information, the seller has no idea what the buyer wants

by **Robin Hood** » Tue Apr 26, 2016 6:00 am

tsukoui wrote:You guys are totally missing the point, every coin in Britain has the monarch's image on it, thus currency conveys information, without the proper information, the seller has no idea what the buyer wants

I'm afraid that is beyond my powers of understanding. In the UK it is The Queen, ......... what about all the countries that use animals, buildings, symbols or even dead people. What is the message? That is a bit too obscure to convey a anything to me! There again I was never very good at crossword puzzles either. :wink:

by **Robin Hood** » Thu Apr 28, 2016 4:19 pm

In spite of DT saying “.....inaccuracies that have been listed here are way off.” and with a robust endorsement from Paphitis that DT is “ .... someone who knows the industry inside out and knows what he is talking about.” and will “ .....destroy that stupid Robin Hood and the fallacies he pushes about Banks being able to self fund themselves and create money from thin air!”, it has gone remarkably quiet! :roll:

So, as no counter argument or evidence to support the statement has been forthcoming, it has to be assumed that ‘fallacies and stupidity’ prevails? Banks DO create money out of thin air!

So to continue ........

Why does RBS still have massive losses in spite of a bail-out but, Bank of Cyprus a much smaller outfit, is now making a profit ...... and yet as we have seen on this thread they are making few loans and have a high levels of NPL’s? (A question for the experts) Where do these profits come from? :?:

Hidden in the Budget: our £22bn loss on RBS

With the world economy still feeling the effects of the 2008 banking crisis, and RBS itself still plagued by the mistakes of the past, it’s clear that we are still very far from having a healthy financial system.

Our stake in RBS gives us a unique opportunity to transform one of the UK’s biggest banks so that it genuinely serves the public interest – for example, by breaking it up into a network of local ‘people’s banks’.

The only real justification for selling RBS back to continue business as usual has been that it will recoup some money for the taxpayer. But if we’re going to lose half our money anyway, why on earth wouldn’t we at least ask whether this money could be better used as an investment in the future of our broken banking system?

With taxpayers now facing a £22bn black hole, it's high time for the full range of options to be put back on the table.

http://www.neweconomics.org/blog/entry/hidden-in-the-budget-our-22bn-loss-on-rbs

At least there are some people in the ‘business’ that see alternatives to the current banking system ? If the Peoples Banks were funded by the Central Bank instead of creating their own electronic currency .... they would be on a winner. There are apparently some 1700 of these peoples banks in Austria and I believe a lot in Germany also? :wink:

by **Robin Hood** » Tue May 03, 2016 6:23 pm

All those that recognise that there are problems with the current monetary system advocate the first step is to take away the commercial banks ability to create money out of thin air and transfer the function to the Central Bank.

Rick Cook ...... short video from 2009

Former Treasury Department official Rick Cook says America has two economies in crisis: the “producing” economy and the “financial” economy. He advocates replacing a bank centered monetary system with money created directly by the Federal Government. How does the U.S. recover with trillions of dollars in debt? Hear his suggestions.

https://www.youtube.com/watch?v=DVj0aLzIAb4&feature=related

Some banking related articles ..........

WILL 2016 BE THE YEAR OF THE MULTINATIONAL BANK BAIL IN ?

One of the recent top stories in 2016 so endemic and explicative of what is going on in banking involves the Austrian financial institution Hypo Alpe Adria, which incidentally was taken over by Austrian Government authorities in 2009 and placed into receivership under an entity named Heta Asset Resolution. Flash forward to about March of 2015, whereby it was revealed that the equivalent of US$8.5 Billion Dollars has disappeared from the balance sheet and as a result that entity has now been taken over by Austria's Financial Market Authority. So here is the first question: what were these people doing for almost 7 years? I know there was some football championships (soccer for the Americans) on television that might have diverted attention for awhile, but 7 years?

http://www.blacklistednews.com/WILL_2016_BE_THE_YEAR_OF_THE_MULTINATIONAL_BANK_BAIL_IN_%3F/50813/0/38/38/Y/M.html

A NEW DIGITAL CASH SYSTEM WAS JUST UNVEILED AT A SECRET MEETING FOR BANKERS IN NEW YORK.

So it is not just Michael Snyder from The Economic Collapse Blog that is referring to this gathering as a “secret meeting”. This is actually how it was described by Bloomberg. And I think that there is a very good reason why this meeting was held in secret, because many in the general public would definitely be alarmed by this giant step toward a cashless society. Here is more on this new system from Bloomberg…

“Instead of a record or message being moved, it’s the actual asset,” Ludwin said. “The payment and the settlement become the same thing.”

Why this is so alarming is because we are seeing other major moves toward a cashless system all over the planet. In Sweden, 95 percent of all retail transactions are already cashless, and ATM machines are being removed by the hundreds. In Denmark, government officials actually have a stated goal of “eradicating cash” by the year 2030. And in Norway, the biggest bank in the country has publicly called for the complete elimination of all cash.

http://www.blacklistednews.com/A_New_Digital_Cash_System_Was_Just_Unveiled_At_A_Secret_Meeting_For_Bankers_In_New_York/50875/0/38/38/Y/M.html

by **Robin Hood** » Tue May 17, 2016 6:09 am

Atta boy Donald ..... you tell 'em how to solve the problem....... :lol:

Trump obviously has a far better appreciation of the monetary system than the average politician...... it seems he is a exponent of the same policies as those that understand the monetary system, as opposed to those that understand only the Banking accounting system! It all makes sense ...... the State creates the money (electronically)..... pays off the debt to the Banks(electronically)...... write-off the debt on the banks books (electronically). Result? No more State debt to the commercial/private banks and no more interest to pay to the Bankers! :lol: