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

[akphidelt]

I don't deal with with conceptualization and fallacy theory. I'm handling money and deposit everyday. Unless you can explain it me how banks create deposit out of nothing, stick your stupidity in your ass.

So you are saying banks don't create deposits out of nothing and you handle money and deposits every day? If you don't like to conceptualize than don't read my posts.

What does this have anything to do with your stupid theory. How did bank create deposit from thin air?

By creating a deposit for the Govt.

Why don't you impress us with your "advance knowledge". How did bank create loans when they don't have any deposit?

Once again, it is a conceptualization of an economy starting from scratch. The fact that you don't grasp this is hilarious!! Banks don't lend deposits. Banks don't need deposits to make loans. Banks need capital.

The bitch is pulling the last page from his debate handbook, when he is the corner, proceed with name calling, it will work 10 out of 10.

You haven't said anything that makes sense.

 

[DeathEatsaCracker]

Nevermind

 

[snoop]

So you are saying banks don't create deposits out of nothing and you handle money and deposits every day? If you don't like to conceptualize than don't read my posts.

Are you fucking dense? I said bank needs deposit to create loans? Now according to your stupid theory, banks simply create loan out of nothing. How? Yeah don't read your post, that explains it. LMAO!!!

By creating a deposit for the Govt.

Don't they have to have deposit in order to create new deposit?

Once again, it is a conceptualization of an economy starting from scratch. The fact that you don't grasp this is hilarious!! Banks don't lend deposits. Banks don't need deposits to make loans. Banks need capital.

I never said banks lend deposit. Do you have a problem comprehending your own language?

Where did bank get the "capital"? Hopefully, now we're getting somewhere....

You haven't said anything that makes sense.

Your trolling game is getting old freshman.

 

[snoop]

DEAC, I think you should help your butt buddy out. He is having a hard time trying to figure out how banks can create loans out of nothing..

 

[fletchisrhsm]

Source?

http://www.usdebtclock.org/index.html

But take a look at fletchers response to this thread. He is talking about sustainability and things that have nothing to do with my thread. I'm simply describing how it works I'm not trying to say what the Govt should or shouldn't do!

Your theory doesnt hold water if its not sustainable over time. Because at the end of the day, the only ones holding power will be those able to convert dollars into tangible assets. If inflation eats away the dollars value the majority of the public will be at a serious disadvantage... how does that theory sit with you? Ive been screaming this is a misconception here for at least 5 years now... Back when debt/GDP ratio was at the "optimal" 70%. HAHAHA just 4 years ago sheep! I wonder what happens the next 4? Bring on QE4, 5, 6.... We are all Japanese now!

http://www.therxforum.com/showthread.php?t=641425&page=3&highlight=debt

 

[akphidelt]

http://www.usdebtclock.org/index.html

Lol, nice source. So do you have a source that proves that we are on a path to have $24 trillion in debt in 2015?

Your theory doesnt hold water if its not sustainable over time. Because at the end of the day, the only ones holding power will be those able to convert dollars into tangible assets. If inflation eats away the dollars value the majority of the public will be at a serious disadvantage... how does that theory sit with you? Ive been screaming this for at least 5 years here now...

What I say is not a theory, it is a description of the system. You are talking about theory. If you want me to discuss why your theory of the system is wrong that is fine, but this is just merely a description of how the transactions in America work, especially debt and money creation.

 

[snoop]

What I say is not a theory, it is a description of the system. You are talking about theory. If you want me to discuss why your theory of the system is wrong that is fine, but this is just merely a description of how the transactions in America work, especially debt and money creation.

Please describe how could banks create loans without any reserve/deposit?

I'm eager to hear it.

 

[akphidelt]

Are you fucking dense? I said bank needs deposit to create loans? Now according to your stupid theory, banks simply create loan out of nothing. How? Yeah don't read your post, that explains it. LMAO!!!

The theory starts from scratch. You cannot conceptualize a country starting from nothing because you are to dumb. Lol.

Don't they have to have deposit in order to create new deposit?

They have to have capital not deposits.

I never said banks lend deposit. Do you have a problem comprehending your own language?

So then why would they need deposits if they do not lend deposits?

Where did bank get the "capital"? Hopefully, now we're getting somewhere....

Whoever created the bank starts off with capital, they also get capital from interest on loans and investments.

Your trolling game is getting old freshman.

Then stop responding to me. I would actually love it if you left me alone and stopped stalking me! Thanks!

 

[akphidelt]

Please describe how could banks create loans without any reserve/deposit?

I'm eager to hear it.

I didn't say a bank can lend with out reserves, I said they can lend with out deposits.

 

[snoop]

The theory starts from scratch. You cannot conceptualize a country starting from nothing because you are to dumb. Lol.

It's not start from scratch. Money and debt existed long before The Federal Reserve and Primary Dealers did.

They have to have capital not deposits.

Capital belongs to banks. Deposit belongs to consumers. Bank do need both to make loans.

So then why would they need deposits if they do not lend deposits?

Banks multiply deposit. And the can't multiply deposit when they have zero deposit. 1,000,000,000,000 x 0 = 0. Did you pass 1st grade math?

Whoever created the bank starts off with capital, they also get capital from interest on loans and investments.

Okay. Banks need capital/deposit before they can lend money to government, they don't just create loans out of nothing like the little story tale you're spewing.

Then stop responding to me. I would actually love it if you left me alone and stopped stalking me! Thanks!

Only when you fuck off.

 

[snoop]

I didn't say a bank can lend with out reserves, I said they can lend with out deposits.

Hey bitch. How could banks lend out anything when they do not have anything to lend?

 

[akphidelt]

Hey bitch. How could banks lend out anything when they do not have anything to lend?

I never said that. I said they do not need deposits in order to create deposits. Get with the program. You are embarrassing yourself again!

 

[akphidelt]

It's not start from scratch. Money and debt existed long before The Federal Reserve and Primary Dealers did.

Lol, is this really your explanation?

Capital belongs to banks. Deposit belongs to consumers. Bank do need both to make loans.

No they don't

Banks multiply deposit. And the can't multiply deposit when they have zero deposit. 1,000,000,000,000 x 0 = 0. Did you pass 1st grade math?

The banking system as a whole multiplies deposits. An individual bank doesn't need deposits in order to create deposits. Try again!

Okay. Banks need capital/deposit before they can lend money to government, they don't just create loans out of nothing like the little story tale you're spewing.

Banks need capital not deposits. It's absolutely hilarious how you can't even comprehend a hypothetical example of a country with out reserves. Amazing!!

Only when you fuck off.

I won't go in to your threads if you don't come in to mine? Deal?

 

[RenoChazz]

Where's Ludwig von mises & Friedrich Hayek when you need them?

 

[akphidelt]

Where's Ludwig von mises & Friedrich Hayek when you need them?

Go to the library and look for Socrates or Hume... you'll find them there!

 

[snoop]

I never said that. I said they do not need deposits in order to create deposits. Get with the program. You are embarrassing yourself again!

So banks don't just create money out of thin air like your stupid theory now? It's you who is embarrassing yourself everyday.

 

[akphidelt]

So banks don't just create money out of thin air like your stupid theory now? It's you who is embarrassing yourself everyday.

No, they do create money out of thin air. Do you not understand how the banking system works?

 

[snoop]

No, they do create money out of thin air. Do you not understand how the banking system works?

You're the one who does not understand how fractional reserve banking system works.

Banks need reserve/deposit in order to make loans. They can't simply create loans out of thin air. Idiot.

 

[snoop]

The banking system as a whole multiplies deposits. An individual bank doesn't need deposits in order to create deposits. Try again!

Banks need capital not deposits. It's absolutely hilarious how you can't even comprehend a hypothetical example of a country with out reserves. Amazing!!

Banks use your deposit to make loans. You fail miserably with banking 101. What do you think your deposit is? When you carry $1000 cash in your pocket, it's your money. When you deposit it at the bank, it's your loan to the bank. Banks can invest your money in anything they want, including buying short term US Treasury. That's why they pay interest on your deposit. I doubt you read the agreement when you opened a checking/saving account. Even if you read it, you're too stupid to understand the banking language.

Your intellectual diarrhea could fool some of the libtards on this board, it's no surprise here because they're just as dumb as you're. Good jobs at fooling your fucktard friends.

I won't go in to your threads if you don't come in to mine? Deal?

I will expose your sorry little dumb ass to everyone until you drop your stupidity altogether.

 

[akphidelt]

You're the one who does not understand how fractional reserve banking system works.

Banks need reserve/deposit in order to make loans. They can't simply create loans out of thin air. Idiot.

Banks need reserves, not deposits. Try again! And yes, they can simply create loans out of thin air