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Donkeyman
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Donkeyman is offline
Melton,United Kingdom
Joined: Jan 2019
Posts: 9,088
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29-06-2019, 10:02 PM
11

Re: How banks make money

Almost finished reading your link Realist, mst rest my eyes
now! Why dont they teach all that at school?
Will finish reading tommorrow hopefully?

Regards Donkeyman!
Donkeyman
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Donkeyman is offline
Melton,United Kingdom
Joined: Jan 2019
Posts: 9,088
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01-07-2019, 12:32 PM
12

Re: How banks make money

Originally Posted by Donkeyman ->
Almost finished reading your link Realist, mst rest my eyes
now! Why dont they teach all that at school?
Will finish reading tommorrow hopefully?

Regards Donkeyman!
I've finished reading your link Realist! Lot of food for
thought there?
Allowing for the authors possible slight bias it seems just
by observation of the last 30yrs , especially in uk, that what
he writes is actually happening, and is becoming more and
more obvious every year! We are allready beholden to the
banking system, with Hammond still applying austerity and
international corporations syphoning money out of the country
and paying next to no tax on their earnings!What he writes
is more likely true than not!

Regards Donkeyman!
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fender
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fender is offline
SE England
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Posts: 6,286
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31-07-2019, 07:35 PM
13

Re: How banks make money

Banks are shysters.
As Realist has inferred, they generate money from thin air.

Lets say you want to borrow 5k. You sign a loan agreement. They simply make a keyboard entry to your account of + 5k.
The loan agreement is a "promise to pay". That being the case, it becomes an asset to the bank and their nett worth increases by 5k (+ the interest).

In other words, the 5k does not actually exist until you sign the loan agreement.
Realist
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31-07-2019, 07:40 PM
14

Re: How banks make money

Yep. Money from nothing.

But the system can not run indefinately. It MUST ultimately collapse and will do. They will ruin the lives of a great many people when it happens. People will lose everything if they weren't prepared. Numbers in a bank account does NOT equate to actual cash or any inherent value. It's vapourware, fantasy.

Unless you have used your wealth to buy REAL tangible assets of value then when the system collapses you will lose everything . . . overnight.
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fender
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fender is offline
SE England
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Posts: 6,286
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31-07-2019, 09:53 PM
15

Re: How banks make money

Most banks are insolvent by their nature.
It's meant to be against the law to run a company whilst knowingly insolvent.
Doesn't appear to apply to the old boys club though eh?
 
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