I've been saying this for a long-time PTF, but so long as the masses are given bologna sandwhiches and American Idol, this is what we're going to get.
BTW, I don't think you're a fool at all.
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You owe it to yourself to educate yourself on what is happening
- Thread starter ProfitTakgFool
- Start date
BTW, I don't think you're a fool at all.
Quote from ProfitTakgFool:
This is not a fractional reserve system. A FR system can only lend 900k on a $1M deposit. Our current system can lend 10M on a 1M deposit if banks are required to stay under a 10:1 leverage system. When the bank creates a loan it gives them GREATER lending power, not less.
People think the Fed creates money by printing paper. That couldn't be farther from the truth. They lower rates to create demand for loans so a bank can fully realize their lending power on that 1M deposit.
<b>Our system is not a FR system, it's a perpetual debt system</b> and few people realize it. A fiat currency system that is fueled by debt can only collapse.
My point wasn't to make a value judgement on today's system, but rather that realizing how it functions is probably not extremely useful from an investing standpoint, as it won't help you predict when it will fail, just that it will.
Quote from ProfitTakgFool:
This is not a fractional reserve system. A FR system can only lend 900k on a $1M deposit. Our current system can lend 10M on a 1M deposit if banks are required to stay under a 10:1 leverage system. When the bank creates a loan it gives them GREATER lending power, not less.
People think the Fed creates money by printing paper. That couldn't be farther from the truth. They lower rates to create demand for loans so a bank can fully realize their lending power on that 1M deposit.
<b>Our system is not a FR system, it's a perpetual debt system</b> and few people realize it. A fiat currency system that is fueled by debt can only collapse.
All true PTF.
But you still dont get it.
A currency is worth whatever the man pointing the M-16 automatic rifle at you tells you its worth.
I used to be an alarmist and buy gold but I realized that if ever my nightmare visions (or yours) ever came true, gold and all other considerations would merely be semantics.
I dont think this is the end of the world but it's certainly the end of the bacchanal we've enjoyed since the 80's.
And that will be worse for the sheeple than the end of the world.
Better thing to buy is guns. Lots and lots of guns. Learning to make your own bullets wouldnt hurt either.
But for now, Bankers rule the world.
Good post, its so unfortunate it has to be the way it is. We are truly an enslaved nation.
Quote from ProfitTakgFool:
And, this system was created by the Federal Reserve Act of 1913. It took 16 short years for it to collapse and The Federal Reserve was blamed for making a bad situation worse when they tightened credit when the shit start hitting the fan. The Fed back then did exactly the right thing because they knew the financial system was built on a house of cards and they were caught with their pants down. They stopped creating debt on top of debt. The current Fed is doing the exact opposite. They are trying to fix a debt clogged system with more debt. They are pumping massive amounts of liquidity into the system to try and fix the problem. If the financial system doesn't collapse now it will simply collapse at a later date. The US is on a one way street to financial ruin and very few people understand why.
I remember when I was in my 10th grade honors history class and being told this truth of life.Quote from Aok:
A currency is worth whatever the man pointing the M-16 automatic rifle at you tells you its worth.
It was such a shock to my system I had to check out of the course in lieu of a more traditional (sugar coated) curriculum.
Take a look at how Great Britian used to roll: The Opium Wars
At least if they don't let it collapse now, and instead delay it, we have a chance to cash in on the next huge bubble. I prefer another bubble, than my livelihood as a trader being wiped out by massive deflation.
I agree, this information has no value as far as investing and trading are concerned, which is why I posted it in the economics section of ET.
Quote from Zlatko:
My point wasn't to make a value judgement on today's system, but rather that realizing how it functions is probably not extremely useful from an investing standpoint, as it won't help you predict when it will fail, just that it will.
MandelbrotSet, I have to admit. It is only recently that I learned how the banking system really worked. I have an advanced education and I believed what I was taught in school. I was watching Ron Paul ask Bernanke a while back why debt wasn't based on actual savings and I wondered how debt could grow while the savings rate was going negative. That led me on a quest to understand exactly how the banking system worked. I was absolutely shocked to hear this. I never knew the system worked this way so now I am sharing my knowledge with whoever wants to listen. I apologize for not taking the blinders off sooner.
LOL, I'm only a fool when it comes to taking profits. If I leave them there the market always takes them back so I do the "foolish" thing and just take them.
LOL, I'm only a fool when it comes to taking profits. If I leave them there the market always takes them back so I do the "foolish" thing and just take them.
Quote from MandelbrotSet:
I've been saying this for a long-time PTF, but so long as the masses are given bologna sandwhiches and American Idol, this is what we're going to get.
BTW, I don't think you're a fool at all.
PFT,
If you havent already, pick up Creature from Jekyl Island by Ed Griffin.
A very long read but read it if you want to knock your socks off. I read it years ago and am still amazed we havent crashed completely already.
Secrets of Federal Reserve by Eustace Mullins is good too.
Really though, Solomon was right: Nothing new under the sun.
If you havent already, pick up Creature from Jekyl Island by Ed Griffin.
A very long read but read it if you want to knock your socks off. I read it years ago and am still amazed we havent crashed completely already.
Secrets of Federal Reserve by Eustace Mullins is good too.
Really though, Solomon was right: Nothing new under the sun.
One of my trading buddies recommended that book a while back. I never picked it up because I was busier with other things but now that I have the time I'll read it. Thanks for the other suggestion. I'll look into that as well.
Quote from Aok:
PFT,
If you havent already, pick up Creature from Jekyl Island by Ed Griffin.
A very long read but read it if you want to knock your socks off. I read it years ago and am still amazed we havent crashed completely already.
Secrets of Federal Reserve by Eustace Mullins is good too.
Really though, Solomon was right: Nothing new under the sun.