More money to the banks!

The non existence of true wealth vanished when the gold standard was dropped... There's Subject for you to read up on.
 
As someone who works for a Bank it never ceases to amaze me the amount of misinformation and assumptions that are trotted out as facts about "banks" in these types of debates.

If you really want to rant about something then let's go down the road of abolishing capitalism as a global system and replace it with bartering or true communism. About the only feasible way of getting rid of the current banking system....not something that would be a bad idea if it could ever be truly made to work.
 
srichards said:
The banks are the problem. They leant to completely unsuitable people and now they won't lend *our* money to anyone else nor pay decent rates of interest.
Click to expand...

To clarify, that may be the now but one of the BIG BIG problems that really helped kick off problems was that Banks literally pulled the rugs out from under the feat of many.

A few years back when it really kicked off, companies where going under left right and centre, I was doing a lot of collections on the driving side of; unpaid for materials and goods.

And I got talking to the managers and many of the workforces at these place and the thing that killed them was that the finance was pulled out from under them.
Most have/had millions (one had billions) of pounds of work on the books over the coming few years but because they couldn't pay back quickly their money flow was cut off.

Obvious result, no money to buy the materials to make the goods to pass on to the client and get paid for to pay back the financiers with profit and pay and employ the workforce and continue business.

And this was a fairly universal story, none of these companies talked to one another, if it where 1 or 2 that said this to me I would be sceptical, but 30>40 and up?
Companies that had been around for 50+ years and weathered countless recessions?

So, the banks not lending out now is the very least of their crimes.
 
cobwebscavern said:
As someone who works for a Bank it never ceases to amaze me the amount of misinformation and assumptions that are trotted out as facts about "banks" in these types of debates.

If you really want to rant about something then let's go down the road of abolishing capitalism as a global system and replace it with bartering or true communism. About the only feasible way of getting rid of the current banking system....not something that would be a bad idea if it could ever be truly made to work.
Click to expand...
So, which bit of what I said below is misinformation or assumption?
Garry Edwards said:
What they actually do is to move non-existent money from their account to ours, in other words they are lending us nothing at all. The money doesn't exist because it doesn't need to, it doesn't need to because they know that there is absolutely no way that, on a given day, everyone who has deposited money with them will actually want it back. The only 'real' money is the interest, which they get - which of course fuels inflation.

So, if they charge us say 10%, they are making a profit of 10% on the perceived value of the loan.
Click to expand...
Are you saying that the money that a bank would transfer to my account if I was stupid enough to borrow from them would be real money that they would actually lose if I defaulted on the loan? Are you saying that their credit balance actually goes down if they lend me money? Are you saying that the money is actually on deposit with them in the first place?

I'm confused, please help me out here:help:
 
Last edited:
What amazes me more is that people who work for banks think they have a clue what is going on above them as if they're not completely indoctrinated.
 
Last edited:
LOL!
 
The23rdman said:
What amazes me more is that people who work for banks think they have a clue what is going on above them as if they're not completely indoctrinated.
Click to expand...

Yes, I noticed that s/he didn't answer my post:lol:
 
Garry Edwards said:
Are you saying that their credit balance actually goes down if they lend me money? Are you saying that the money is actually on deposit with them in the first place?

I'm confused, please help me out here:help:
Click to expand...

Its easy - it keeps getting lent and lent, moved about as such. However eventually a person / institution / company/ bank / hospital / government / country etc.. gets to the end of the "endless bit of string" at which point depending where in the food chain you are, you will or wont get bailed out.

On the agenda this year
- PPI's (hospitals)
- Banking (again)
- The Eurozone

Answering the broader question.. the reason it is all screwed up, is because we all (collectivley) have lived beyond our means for a long time and are downright greedy

Example. If housing wasn't so expensive in relative terms compared to say 40 years ago, across the board, our mortgages would be easier to pay. 40 years ago, the salary of a "man" would cover the mortgage and bills, as very few women worked. Now relatively, the salary of a man and a woman isn't enough.

Example. 40 years ago, things like fridges, TV's and the like were luxury items you saved up for ages for. Now they along with a lot of other things we never had before are essentials
 
Richard King said:
Its easy - it keeps getting lent and lent, moved about as such. However eventually a person / institution / company/ bank / hospital / government / country etc.. gets to the end of the "endless bit of string" at which point depending where in the food chain you are, you will or wont get bailed out.

On the agenda this year
- PPI's (hospitals)
- Banking (again)
- The Eurozone

Answering the broader question.. the reason it is all screwed up, is because we all (collectivley) have lived beyond our means for a long time and are downright greedy

Example. If housing wasn't so expensive in relative terms compared to say 40 years ago, across the board, our mortgages would be easier to pay. 40 years ago, the salary of a "man" would cover the mortgage and bills, as very few women worked. Now relatively, the salary of a man and a woman isn't enough.

Example. 40 years ago, things like fridges, TV's and the like were luxury items you saved up for ages for. Now they along with a lot of other things we never had before are essentials
Click to expand...


Happiness is your nature.
It is not wrong to desire it.
What is wrong is seeking it outside
when it is inside - Ramana Maharshi

This is the problem. It is human nature to want to be happy and to seek fulfilment. The media, advertising and corporations have played on this forever and created a dependency on stuff and things we don't need. Yes, people are greedy, but that is because they generally have no idea that material things will not truly enrich them.

TV has made this even worse because of the way it bypasses the critical part of the brain.
 
Richard King said:
Its easy - it keeps getting lent and lent, moved about as such. However eventually a person / institution / company/ bank / hospital / government / country etc.. gets to the end of the "endless bit of string" at which point depending where in the food chain you are, you will or wont get bailed out.

On the agenda this year
- PPI's (hospitals)
- Banking (again)
- The Eurozone

Answering the broader question.. the reason it is all screwed up, is because we all (collectivley) have lived beyond our means for a long time and are downright greedy

Example. If housing wasn't so expensive in relative terms compared to say 40 years ago, across the board, our mortgages would be easier to pay. 40 years ago, the salary of a "man" would cover the mortgage and bills, as very few women worked. Now relatively, the salary of a man and a woman isn't enough.

Example. 40 years ago, things like fridges, TV's and the like were luxury items you saved up for ages for. Now they along with a lot of other things we never had before are essentials
Click to expand...
All this is true, but it doesn't really explain how the fraud that we call the banking system actually works.

Back in history, people would deposit actual, real gold with goldsmiths, who would then lend it to people who they were sure would and could pay it back. Initially, they could only lend what they actually had in their physical possession, but then they realised that if, for example, 100 people had each lent them 1 gold piece, they could actually lend out a total of say 200 gold pieces because the 100 people who had each lent them 1 gold piece wouldn't all come in together and demand their gold piece back.

Problem was, they couldn't lend out 200 gold pieces because they only had 100 of them in their physical possession, so they issued banknotes that, in theory, were worth the same as a gold piece.

As time moved on, they started to reach agreements with each other, so that if those 100 people who had each lent them 1 gold piece did in fact start a 'run' on their bank (as it had now become) and demand their gold back, they could borrow some gold (or banknotes) from other banks. Because of this, they could safely increase the ratio of actual deposited gold to loaned banknotes from 2:1 to 3:1, making more money available for loan and creating more profit for them.
3:1 moved to 7:1, then 9:1, God knows what it is now.

Yes, the banking world would collapse if people had the sense not to borrow from them, yes it's advertising and a consumer society that makes people want to borrow and yes, it's the legal system that supports the fraud perpetuated by the banks, but basically it's all down to the dishonest business practices of the banks.
 
All capitalism relies upon exploitation, you don't have to be a Marxist to see and accept that, that is just how it works - whether you accept that as the status quo is where Marxists will start to diverge from the rest ;-)

Personally, I've always detested Status Quo - that Francis Rossi should have cut his hair years ago :D
 
Garry Edwards said:
...
3:1 moved to 7:1, then 9:1, God knows what it is now.

Yes, the banking world would collapse if people had the sense not to borrow from them, yes it's advertising and a consumer society that makes people want to borrow and yes, it's the legal system that supports the fraud perpetuated by the banks, but basically it's all down to the dishonest business practices of the banks.
Click to expand...



Tens of thousand to one possibly ...flipping huge anyway. :gag: :shrug:

.....

I think the banking system is very like pyramid selling. Capitalism is a game move in which you can enter the pyramid layers and start to move up, its been a winning formular and one of the reasons we have acheaved so much right. However we have lost sight of its flaws haven't we?
How much more can the world take, we're all blindly fighting for survival through our lives, most of us unknowingly playing pyramid at the expense of others at its lower levels. like children really have died to make stuff for us, or the pyramid if you like... ( feels better right!) ...its shocking but true, the pyramid machine demands to be fed at all times and what we don't see or understand over the decades has avoided our judgement... etc, blah...Pants isnt it?!

Nowadays though, over its century plus life time, the pyramid is so huge in layers it seems the bottom row cannot be filled fast enough to support the demands of the whole! No matter what they shuffle around, yes exploiting, as said, every opportunity, and in doing so its sucked many an smaller economy dry in the passed, then also banks play every trick and ploy they can conjure to keep the sustainable rate necessary to feed the pyramid machines huge appetite!

Yes I agree, consumerism is where its mostly at now, (not much else left is their?) like we keep making cheap pretty dros that people will buy, forget the peoples overall health and real choice, Its like we must turn money over, in fact its easy to say the money exchanging is now more important that the goods they represent,.....Its all now become intrinsic to our way of life, in that, we keep the bottom row of the pyramid filling with the idea that buying stuff means a good life!

Madness right. When I was seventeen I left home thinking adults knew what was going on in the world, now Ive grown up at 40 plus I realise that everyone's just blundering around pretending. ..its soooo disappointing. :D Art is the only thing that makes any true sense. ;)
 
Last edited:
You must log in or register to reply here.
Back
Top