Fractional reserve lending (and debt created money) make banks FAR MORE money than they lose through inflation.
Stick to what you know. This ain't it.
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Federal Reserve Is A Private Corporation
- Thread starter myminitrading
- Start date
Fractional reserve lending (and debt created money) make banks FAR MORE money than they lose through inflation.
Stick to what you know. This ain't it.
Quote from achilles28:
Fractional reserve lending (and debt created money) make banks FAR MORE money than they lose through inflation.
Stick to what you know. This ain't it.
Ahhhh, so now at least we got an admission that they lose and we win through inflation on the long term loans.
This is the first step in pulling yer head outta that dark furry place it's stuck in right now.
Ok, since you now admit that they lose through inflation, how else would you "let" banks make money?
Cuz -
1-they lose money on there long term loans due to inflation
2- they pay out interest on money held in their banks
3- they have operating expenses
I see 2 ways-
1- fractiional reserve banking
2- charging huuuuge interest rates on their loans
Do you have another solution?
AaaaaaaahahahahahahahahahhaQuote from Haroki:
Ahhhh, so now at least we got an admission that they lose and we win through inflation on the long term loans.
Yeah the banks are getting murdered tightening and loosening money supply so they can pick up your home, your business and your car for pennies on the dollar and call it the business cycle.. which they immorally and illegally manufacture
Ok, I even did the math for you guys -
say I borrow from you 30k, 30 yr loan at 6%, and 5% inflation. How much do those dollars buy you, year by year ?
payback might look like this
1st year $1060
2nd 1060 x .95= 1007
3rd 1007 x .95=956
4th = 908
5th = 862
6th = 819
7 = 778
8 =739
9 = 702
10 = 667
11 = 634
12 = 602
13 = 572
14 = 543
15 = 516
16 = 490
17 = 465
18 = 442
19 = 420
20 = 399
21 = 379
22 = 360
23 = 342
24 = 325
25 = 309
26 = 294
27 = 279
28 = 265
29 = 252
30 = 239
For a payback in adjusted dollars of a whopping $16,625......
Does it look like we're getting gouged here?
Again, so how else are the banks gonna make money?
Any solutions? Again, I see only 2
1-fractional reserve banking, taking our loan and multiplying it , since we can see that by the third year, they're losing money, and getting worse every year...
2- no fractional reserve banking and charging huge interest rates, that will result in the same "confiscation" of our property when even the slightest hiccup in ones' income happens.
If you have a 3rd solution, I'd love to hear it.......
say I borrow from you 30k, 30 yr loan at 6%, and 5% inflation. How much do those dollars buy you, year by year ?
payback might look like this
1st year $1060
2nd 1060 x .95= 1007
3rd 1007 x .95=956
4th = 908
5th = 862
6th = 819
7 = 778
8 =739
9 = 702
10 = 667
11 = 634
12 = 602
13 = 572
14 = 543
15 = 516
16 = 490
17 = 465
18 = 442
19 = 420
20 = 399
21 = 379
22 = 360
23 = 342
24 = 325
25 = 309
26 = 294
27 = 279
28 = 265
29 = 252
30 = 239
For a payback in adjusted dollars of a whopping $16,625......
Does it look like we're getting gouged here?
Again, so how else are the banks gonna make money?
Any solutions? Again, I see only 2
1-fractional reserve banking, taking our loan and multiplying it , since we can see that by the third year, they're losing money, and getting worse every year...
2- no fractional reserve banking and charging huge interest rates, that will result in the same "confiscation" of our property when even the slightest hiccup in ones' income happens.
If you have a 3rd solution, I'd love to hear it.......
why should banks make money?
You'll have to forgive Haroki.. he's a little dimwitted.. we were talking about the Fed issuing money and the government taxing the people to pay back interest on something they could produce for nothing.. yeah I'm sure there are no private interests reaping billions off that little scamQuote from Avid_Consumer:
why should banks make money?
ok my numbers were bad. we'll use my own home loan
1-34200
2-32490
3-30865
4-29321
5-27854
6-26461
7-25137
8-23880
9-22686
10-21552
11-20474
12-19450
13-18477
14-17553
15-16676
16-15842
17-15050
18-14297
19-13582
2012903
21-12258
22-11645
23-11063
24-10510
25-9984
26-9485
27-9011
28-8560
29-8132
30-7725
For a total of.... $537,123 on a $525,00 loan. Basically interest free to me. Why is this bad?
1-34200
2-32490
3-30865
4-29321
5-27854
6-26461
7-25137
8-23880
9-22686
10-21552
11-20474
12-19450
13-18477
14-17553
15-16676
16-15842
17-15050
18-14297
19-13582
2012903
21-12258
22-11645
23-11063
24-10510
25-9984
26-9485
27-9011
28-8560
29-8132
30-7725
For a total of.... $537,123 on a $525,00 loan. Basically interest free to me. Why is this bad?
Quote from dalailama:
You'll have to forgive Haroki.. he's a little dimwitted.. we were talking about the Fed issuing money and the government taxing the people to pay back interest on something they could produce for nothing.. yeah I'm sure there are no private interests reaping billions off that little scam
Have any numbers to back this up?
remember that at present, the Fed only holds< 10% of our debts.
Foreigners hold nearly 50% of our debt through bonds, which we pay back with a devalued dollar by the way.....
You've had the way of the world explained to you for the bulk of this thread Haroki.. you prefer to live in your own little fantasy world.. you argue like a Christian fundamentalist.. glassy eyed ignorance at it's finest.. baka gaijinQuote from Haroki:
Have any numbers to back this up?
remember that at present, the Fed only holds< 10% of our debts.
Foreigners hold nearly 50% of our debt through bonds, which we pay back with a devalued dollar by the way.....