Think of the National Debt as a Loan that Never has to be Paid Off

[snoop]

Your guys problem is you can not visualize the system as a whole. I mean this comment you just made has so much stupidity in it I don't know where to even start.

Banks lend our savings??? I have gone over this with you. Banks do not need your money in order to lend money. You saving money does not give the banking system any extra money to lend. How dumb can you be?

Banks use checking/savings to make loans. Your constant spewing misleading and misinformation will not fool anybody fucktard. Do you think your savings account just grow interest on itself? Modern Monetary Theorist LMAO!!!

China??? You want us to be more like China? They have a $7,000 real gdp per capita. On average an individual American has almost $40,000 more in purchasing power than the Chinese. China also has a higher inflation rate than us. So do you still want to be like China even though inflation scares you to death? Are you really this dumb?

Your trolling game is getting old. I was not comparing the size of the economy between the two countries. I was referring to your theory, high savings personal rate would cause recession, do you see China economy is tanking? Chinese save and hoard lots of money, according to your theory, it's economy should be tanking right now. Is it?

And if you couldn't get any more dumber, you say that American personal saving rate is at record lows???? Do you just make shit up out of thin air? The savings rate is what is killing America. This is a perfect example of a country that is saving more than it did before. You get in a recession and the Govt has to bridge the gap of savings by pumping more money in to the economy. Do you ever listen to anything I say? I have explained this to you in detail. You are so dumb, it's embarrassing that I even waste my time on you. But the only reason I do it is because other people have your same thought process and maybe this will help them out. You on the other hand, are a lost cause.

Government spending comes from private savings. Where do you think government borrowing come from? The spike in in savings rate at the beginning of the recession was a result of consumers plowed more cash into US Treasuries. Seriously, do you think government spending came from thin air or something? You need to have your head checked fucktard.

Savings rate is at an all time low!! Hahahahaha. The savings rate was at an all time low right before the collapse, then it jumped up almost 400%. Notice the correlation between savings and recessions. And if you understand anything about macroeconomics it makes sense. But since you don't, you will come up with some stupid excuse about India or something. You my friend are an idiot!!

Personal saving rate right now is barely above pre recession level? Why is the economy is still flat on its back? According your theory, we should have seen it's booming already..

 

[akphidelt]

Banks use checking/savings to make loans. Your constant spewing misleading and misinformation will not fool anybody fucktard. Do you think your savings account just grow interest on itself? Modern Monetary Theorist LMAO!!!

This is incoherent snoop. Banks do not use our checking or savings to make loans. This has nothing to do with MMT... it is basic banking knowledge.

 

[snoop]

This is incoherent snoop. Banks do not use our checking or savings to make loans. This has nothing to do with MMT... it is basic banking knowledge.

Banks use checkings/savings to make loans. What you have read, heard, told....is irrelevant to me. You're either a lying piece of shit or do you not know what the hell you're talking about.

Banks make loans by multiplying reserve/deposit, if there is no reserve/deposit = no loans.

What do you think bank does with your saving investment? Do they just sit on it?

 

[akphidelt]

Banks use checkings/savings to make loans. What you have read, heard, told....is irrelevant to me. You're either a lying piece of shit or do you not know what the hell you're talking about.

Banks make loans by multiplying reserve/deposit, if there is no reserve/deposit = no loans.

What do you think bank does with your saving investment? Do they just sit on it?

Snoop, you do not understand the banking system. Banks do not need you to deposit money in order to make loans. They make loans to whomever meets their qualifications than they attain the reserves afterward. They don't wait for your deposit to make a loan and they don't loan your deposits. You have a lot to learn old grasshopper. But luckily I'm a nice guy and I will teach you!!

 

[snoop]

Snoop, you do not understand the banking system. Banks do not need you to deposit money in order to make loans. They make loans to whomever meets their qualifications than they attain the reserves afterward. They don't wait for your deposit to make a loan and they don't loan your deposits. You have a lot to learn old grasshopper. But luckily I'm a nice guy and I will teach you!!

Banks make loans by multiplying deposit, if there is no deposit, there no loan can be made. Seriously, I start to wonder if you understand your own language. Do you understand what does "FRACTION" mean?

frac·tion (fr

k

sh

n)n.1. Mathematics An expression that indicates the quotient of two quantities, such as 1/3 .
2. A disconnected piece; a fragment.
3. A small part; a bit: moved a fraction of a step.
4. A chemical component separated by fractionation.

fraction [ˈfrækʃən]n1. (Mathematics) Mathsa. a ratio of two expressions or numbers other than zero
b. any rational number that is not an integer

2. any part or subdivision a substantial fraction of the nation
3. a small piece; fragment
4. (Chemistry) Chem a component of a mixture separated by a fractional process, such as fractional distillation
5. (Christianity / Ecclesiastical Terms) Christianity the formal breaking of the bread in Communion
6. the act of breaking

fraction (fr

k

sh

n)1. A number that compares part of an object or a set with the whole, especially the quotient of two whole numbers written in the form a/b . The fraction 1/2 , which means 1 divided by 2, can represent such things as 10 pencils out of a box of 20, or 50 cents out of a dollar. See also decimal fractionimproper fractionproper fraction
2. A chemical component separated by fractionation.

You can't multiplying anything with zero can you?

Your crooked theory would be called NON RESERVE banking, it's Zimbabwe banking system because it requires no reserve to make loan. Banks just print money at will without any constraint...

 

[akphidelt]

Hahahahahahaha!! You are so dumb it's hilarious. I should start paying you for the entertainment.

And it's not my "theory". It's literally how the banking system works. Banks need reserves, not deposits. Maybe that will jiggle some intelligence in to your ignorant mind.

 

[snoop]

Hahahahahahaha!! You are so dumb it's hilarious. I should start paying you for the entertainment.

And it's not my "theory". It's literally how the banking system works. Banks need reserves, not deposits. Maybe that will jiggle some intelligence in to your ignorant mind.

Why do think the Fed set a reserve ratio for banks?

Why do you think bank needs cap/asset to risk requirement ratio?

How do they figure out the numbers?

You're exposed as clueless fuck troll.

 

[akphidelt]

Why do think the Fed set a reserve ratio for banks?

Why do you think bank needs cap/asset to risk requirement ratio?

How do they figure out the numbers?

You're exposed as clueless fuck troll.

What does this have to do with deposits?

 

[akphidelt]

Snoop, you are a lost cause my friend.

You don't know what real disposable income is
You don't know that banks don't need you to deposit money to make loans

You need help that I am not qualified to give. Go seek help, the voices in your head can be contained!

 

[snoop]

Snoop, you are a lost cause my friend.

You don't know what real disposable income is
You don't know that banks don't need you to deposit money to make loans

You need help that I am not qualified to give. Go seek help, the voices in your head can be contained!

It's safe to assume that you're a fucking troll.

Crawl back to your shitty hole in Alaska kid.

You're simply embarrassing.

 

[akphidelt]

It's safe to assume that you're a fucking troll.

Crawl back to your shitty hole in Alaska kid.

You're simply embarrassing.

This is what you always do when you realize you are a fucking idiot!! Lol, "banks use our savings to lend"!!! Hahahahahahahaha, you are fucking dumb!!

 

[snoop]

This is what you always do when you realize you are a fucking idiot!! Lol, "banks use our savings to lend"!!! Hahahahahahahaha, you are fucking dumb!!

Fucktard, if you want to look for constant pampering and smarminess in here, you're looking at the wrong place.

You're a fraud and a brainwashed piece of shit, it's been proven million times.

Give it a rest.

Once I'm done dickslap you in here, I go to other site to dickslap your sorry little ass some more.

 

[TheWolf]

Why cant the government simply print interest free money themselves AK, like the constitution states?

 

[akphidelt]

Why cant the government simply print interest free money themselves AK, like the constitution states?

That's a good question. I actually do not know exactly why they don't do that. My opinion is that they simply do not want to shake up the system. Imagine if the Govt told the world that they were now issuing interest free money. That would send a shock through the entire system, maybe even destroying it. Right now we have some semblance of control by having the Govt "borrow" this money. It makes it seem like the Govt doesn't have free reign to just print and spend. Even though the way they set it up the Govt basically does. The past 3 years is a perfect example of how the Govt can spend whatever they want. The banks printed up trillions of dollars to fund Govt spending and then the Fed basically came in and took $800 billion of that off their balance sheet. The Fed even created a new policy that allowed the banks to borrow from them in order to purchase these treasuries.

So I do not know the exact answer to your question... but I do know the Govt can spend whatever it wants, whenever it wants, regardless of taxes, regardless of how much China lends us, etc.

 

[snoop]

So I do not know the exact answer to your question... but I do know the Govt can spend whatever it wants, whenever it wants, regardless of taxes, regardless of how much China lends us, etc.

Okay troll, if you say so :grandmais

 

[akphidelt]

Fucktard, if you want to look for constant pampering and smarminess in here, you're looking at the wrong place.

You're a fraud and a brainwashed piece of shit, it's been proven million times.

Give it a rest.

Once I'm done dickslap you in here, I go to other site to dickslap your sorry little ass some more.

Until you admit that you didn't know what "real" disposable income means and that banks don't use your savings to make loans... then I will never respond to another one of your idiotic posts.

If you can't even admit the truth when I have proven that you are completely wrong than there is no reason talking to you. And since I know you will never admit you were wrong, this will be a goodbye!! I would appreciate it if you stopped stalking me and just left me alone. You are a very annoying and dumb individual. Thanks!

 

[snoop]

Until you admit that you didn't know what "real" disposable income means and that banks don't use your savings to make loans... then I will never respond to another one of your idiotic posts.

If you can't even admit the truth when I have proven that you are completely wrong than there is no reason talking to you. And since I know you will never admit you were wrong, this will be a goodbye!! I would appreciate it if you stopped stalking me and just left me alone. You are a very annoying and dumb individual. Thanks!

It's not too hard to figure out a you're a pseudo dumb fuck eh? How long do you think you can continue to spam every message boards with your bullshits?

 

[akphidelt]

Like I said, picture Govt debt like it's a loan and it is much easier to comprehend.

Source: http://www.rayservers.com/images/ModernMoneyMechanics.pdf

Deposit expansion can proceed from investments as well as loans. Suppose that the demand for loans at some Stage 1 banks is slack. These banks would then probably purchase securities. If the sellers of the securities were customers, the banks would make payment by crediting the customers' transaction accounts, deposit liabilities would rise just as if loans had been made. More likely, these banks would purchase the securities through dealers, paying for them with checks on themselves or on their reserve accounts. These checks would be deposited in the sellers' banks. In either case, the net effects on the banking system are identical with those resulting from loan operations.

Now when banks, who purchase 80% of securities auctioned off by the Govt. purchase these securities, it is INCREASING the amount of deposits just like if they make a loan. This increase in deposits is now used by the Govt to pay the nonbank public. The nonbank public receives this money, uses it to buy goods and services, save, etc. This is also money that is used to pay taxes and buy Govt debt on the secondary market.

And since loans simply can be created out of thin air by simply creating an asset and a liability there is absolutely no solvency risk to the United States of America. We can never go broke and we can never run out of money. It's just a perpetual loan that will never stop unless society crumbles.

 

[5teamparlay]

currently:

The Outstanding Public Debt as of 30 Jan 2013 at 06:31:42 AM GMT is:


16,437,683,176,054.87

 

[festeringZit]

currently:

The Outstanding Public Debt as of 30 Jan 2013 at 06:31:42 AM GMT is:


16,437,683,176,054.87

Oh wait, in the few hours since you've posted this, it's gone up $50 Billion.

16,489,803,371,000