Topic: Fractional Reserve Lending IS NOT bad - its unavoidable - page 6. (Read 12782 times)

Human population growth is no longer growing exponentially, in some countries like Japan they're actively trying to stimulate the population to make more babies because they know otherwise it will be much harder to keep growing the earth's cancer economy to keep up with their debt burdens and accompanied interest. Do you believe this is actually a healthy and natural thing? Honest question.

LOL this ozziecoin guy has been constantly dropping names of economists and famous traders who don't support his position about FRB.  I don't know WTF he is saying either.  I think he's just trolling but I have some sick compulsion to keep replying him

One on One lending is not possible to meet the capital demands of the market.  You can still have FRB under BTC.  A bank makes loans and then finds the BTC reserves.  But the big difference is when they can't find reserves there is no Central Bank to act as lender of last resort and the system would collapse pretty fast.

When you say "government" you're referring specifically and exclusively to federal government are you not?

Is this real in your opinion?



http://www.usdebtclock.org/

WTF am I reading?

Weirdass extrapolation from statements made by the guy who wrote The Population Bomb in the '60s (mostly shown wrong since), and an ex-chairwoman of some Canadian agency disbanded in the early '90s (had to look both of them up).

What are you trying to say?  Say it in your own words.

There's a nuance. You treat government as if it was another average Joe borrowing from banks. That's not quite true. In fact, the government is who sets rules here. It's the government that creates money.
For this very reason, MMT breaks down monetary transactions to two different types: horizontal and vertical. Horizontal transactions are those which happen between banks and average Joe. And it's true that interest repayment here can only happen through borrowing more. But it becomes more complicated when you add government to the system.

Vertical transactions involve central bank, banking system and the government. And the government is able to add money (monetary assets) to the economy. It does it every time it runs a budget deficit.
So, basically there are two ways new money is created: through bank lending and through deficit spending.

So the answer to this question:
is "when government runs fiscal deficit".

I rebut you with David Suzuki

http://mmoffatt1.typepad.com/blog/2012/10/david-suzuki-how-economics-became-a-science-of-destruction.html

Between FRB and communism is this thing called the Blockchain and one on one lending.  Gee, do I have to spell everything out for you?

So you're just another gamer in the system?  Don't keep tripping over yourself, will ya?

Except Minsky does.  So does Soros.  Seriously, for fucks sake - do some effing homework.

I'll tell you more, that's not only in England. It's virtually everywhere. Bank makes a loan and then corrects its reserve account (usually closer to the end of the day).
This makes reserve requirements obsolete because there will always be enough reserves to expand credit (unless central bank stops maintaining interest rate target).

Re. your edit:
Your posts could be accurately described as "not even wrong."
While mostly grammatically well-formed, your posts fail to meet the same criteria at a logical level, thus responding with anything other than "lol" is a fool's errand.

I agree but if you want free markets its gotta be this way.  How are you gonna stop people from wanting to enrich themselves through profit?  Communism didn't work.  

This is a discussion forum. If you're unprepared, unable, or unwilling to defend your posts, then don't post them. You're contributing precisely nothing to this conversation.

^Miz4r suggested that exponential growth is unsustainable.  I replied that human population growth is exponential.
Not everything in this thread is about you.

Consider taking part in the gubmint brainwashing program -- huffing gas may have seemed like a great alternative to education, but look how shit worked out...

Human population growth is not exponential and currency expansion is not economic growth. The US economy doesn't magically improve simply because helicopter benny conjures up $85b/month and dumps it on his bankster buddies.

@ozziecoin

LOL not even close.  Just because I like to learn doesn't mean I'm in school.  Try it sometimes

If you understood options trading you would not make a dumb statement like that about Taleb betting against me. It doesn't even make sense.  You don't even know how I trade or what my positions are.  Furthermore traders sont bet against each other as individuals just the options have 2 sides.  Its not a chess game its a market.  Besides, Taleb retired from trading its impossible for us to ever cross paths

Wait so you respect Soros for gaming the system, but not every other banker for gaming the system?  All Wall Street guys game the system.  Thats how they make money since they don't produce anything

You trying to impress me by name dropping Minsky?  You know he's considered a Post Keynsian right?  

None of these names you dropped says anything about FRB being responsible for economic crashes.  

Human population growth is exponential.  Economic growth needs to be exponential just to keep up

Stop and think for a second, and that is obviously rubbish, because practically every economy that currently exists uses fiat currency, and hasn't collapsed.
So your argument becomes that every economy that has adopted fiat currency has collapsed ...  except all the ones that haven't.
You can say the same thing about anything.
Every economy that has adopted democracy has collapsed ... except all the ones that haven't.
Every economy where people each vegetables has collapsed ... except all the ones that haven't.
Every economy in a country beginning with R has collapsed ... except all the ones that haven't.
And you think it was fiat currency that caused the collapse of the Roman empire? If not, then what is the connection?
Much more simply: Every economy has collapsed ... except all the ones that haven't.

And where does that 'growth' come from? And doesn't the compounding interest on ever growing debt require exponential growth, instead of just linear growth? Is that even sustainable in a finite world with finite resources? Could it be that all our financial and even climate change problems are related to this? I think the answer is yes, but I'm sure someone here will argue it's not and everything is fine...

So long story short...it's not.

Sounds remarkably like a pyramid scheme. There's never enough "money" available to extinguish all debt(principle + interest) as the interest on that debt hasn't been created. This results in perpetual debt slavery as well as major deflationary events if/when the masses lose faith in their currency or there's a sustained economic slowdown and large numbers of peasants stop living beyond their means. If people stop borrowing(or ironically use only physical cotton dollars) the entire system collapses in a deflationary spiral as debt(currency) is extinguished faster than new debt(currency) is created. This is why government policy encourages debt greater than previous debt...IT MUST. HUD, Fannie mae, freddie mac, cash for clunkers, tax credits, zero(and near zero) % interest rates, .gov student loan takeovers, fed mbs purchases(liquidity injections), operation twist(again), etc.

Fiat debt based currencies are designed to fail, and they always do as they're inherently flawed. The USD is no exception and it too will fail(again), but not until those that do not understand the scam are milked dry. At the appropriate time a new scam currency(SDR, Amero, etc) will be wheeled out on cue to replace the failing USD and continue the complicated theft...perhaps this time on a global scale under a single scam currency(SDR). Perhaps like the Euro has unified much of the Euro zone under a scam currency the Amero will unify the Americas under a single scam currency.