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

[akphidelt]

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.

They do not use my deposit to make loans and they don't need me to deposit money in order to make loans.

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

So you are going to continue stalking me? I would appreciate it if you just left me alone all together. You are getting boring.

 

[wabashwonders]

Actually, many loans made by banks are made by borrowing or taking a loan themselves from another bank. So, they do not need our deposits to make loans, they can simply borrow the money if they want...

 

[snoop]

They do not use my deposit to make loans and they don't need me to deposit money in order to make loans.

So you are going to continue stalking me? I would appreciate it if you just left me alone all together. You are getting boring.

What do you think banks do with your savings account? Do they just sit on it and your saving account will grow interest on itself?

And stop crying like a little bitch when you're exposed like a dumb fuck.

 

[fletchisrhsm]

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?


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.

Its on that website, look at the right hand upper corner. It doesnt take an economist to simply project the next three years based on we what are doing and what we will not be doing. Your description of the system is doesnt matter because the system youre touting isnt sustainable. It would take such drastic alterations that the public and elected leaders dont have the stomach for. You championing this is like bragging about knowing the engineering of the titanic. Who really gives a fuck, its going to collapse! Please, tell me how my "theory" is wrong. Tell me how this system wont collapse into itself.

 

[snoop]

Actually, many loans made by banks are made by borrowing or taking a loan themselves from another bank. So, they do not need our deposits to make loans, they can simply borrow the money if they want...

What is your point retard? Banks do need deposit to make loans, if they don't have it, they will have to borrow fund from different banks before they can make loans. Thank you for your clarification.

 

[fletchisrhsm]

Actually, many loans made by banks are made by borrowing or taking a loan themselves from another bank. So, they do not need our deposits to make loans, they can simply borrow the money if they want...

Thats part of the reason you will not be able to sustain this process. The process of fractional reserve banking is a failure. 2008 was a classic example on so many levels yet you dont hear people talking about that.

 

[akphidelt]

Actually, many loans made by banks are made by borrowing or taking a loan themselves from another bank. So, they do not need our deposits to make loans, they can simply borrow the money if they want...

Lol, I didn't want to spell it out for him, I was trying to see how far he would go being an idiot!! Thanks for ruining my fun!

 

[wabashwonders]

What is your point retard? Banks do need deposit to make loans, if they don't have it, they will have to borrow fund from different banks before they can make loans. Thank you for your clarification.

lol, you don't know the difference between too and two, but i'm the retard. classic,LOL

 

[akphidelt]

Thats part of the reason you will not be able to sustain this process. The process of fractional reserve banking is a failure. 2008 was a classic example on so many levels yet you dont hear people talking about that.

Lol, so you only use failures as examples... you don't use any successes? The previous 40 years of unprecedented economic success means nothing but the failure of 2008 means the entire system is a failure?

 

[akphidelt]

Its on that website, look at the right hand upper corner. It doesnt take an economist to simply project the next three years based on we what are doing and what we will not be doing. Your description of the system is doesnt matter because the system youre touting isnt sustainable. It would take such drastic alterations that the public and elected leaders dont have the stomach for. You championing this is like bragging about knowing the engineering of the titanic. Who really gives a fuck, its going to collapse! Please, tell me how my "theory" is wrong. Tell me how this system wont collapse into itself.

You are factoring in productivity. All you are worrying about is debt. Once you realize that a countries worth is determined by it's productivity and not the amount of debt it has, than you can start actually understanding why we have inflation, why we have debt, why the Govt spends money in recessions, etc, etc. And the upper right hand of that site does not explain anything. The actual projections of our debt in the next 4 years are no where close to bringing us to $24 trillion.

 

[snoop]

lol, you don't know the difference between too and two, but i'm the retard. classic,LOL

Read his first post in this thread idiot. He simply assumes banks create money out of thin air to lend. Cite one of his quote if you can that he mentioned banks borrow funds from different banks before they can make loans...

 

[snoop]

Lol, I didn't want to spell it out for him, I was trying to see how far he would go being an idiot!! Thanks for ruining my fun!

Grab the life line your butt buddy just throwing at you, you will survive.

And you have yet to answer me what do you think banks do with your savings account?

 

[snoop]

You are factoring in productivity. All you are worrying about is debt. Once you realize that a countries worth is determined by it's productivity and not the amount of debt it has, than you can start actually understanding why we have inflation, why we have debt, why the Govt spends money in recessions, etc, etc. And the upper right hand of that site does not explain anything. The actual projections of our debt in the next 4 years are no where close to bringing us to $24 trillion.

Kiddo, please refrain from talking about other aspect of the economy before you fully understand how banking system works.

You can't even understand what "deposit" is and you're talking about how good or bad government stimulus is :missingte:missingte My belly is hurt from laughing.

 

[snoop]

I don't think you two faggots are on the same page here. You need to get a room, play with each other cock, then come back and explain it to me why you're a mile apart on this issue.

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

Actually, many loans made by banks are made by borrowing or taking a loan themselves from another bank. So, they do not need our deposits to make loans, they can simply borrow the money if they want...

 

[akphidelt]

Grab the life line your butt buddy just throwing at you, you will survive.

And you have yet to answer me what do you think banks do with your savings account?

Nothing, they simply keep it on their balance sheet. Banks can't lend reserves, they can't lend deposits. They simply create deposits by making loans. You should stop making comments and just ask questions. I am here to teach!

 

[snoop]

Nothing, they simply keep it on their balance sheet. Banks can't lend reserves, they can't lend deposits. They simply create deposits by making loans. You should stop making comments and just ask questions. I am here to teach!

Banks swap reserves through Fed funds every night. Banks are short in reserve can borrow and banks has excess reserve can lend, so technically, they do lend reserves. You have demonstrated a totally lack of understanding how banking system work yet you keep spewing your stupidity 24/7. Don't you ever get tired of being exposed as a little dumb fuck?

What you have read, told, heard.....is irrelevant to me. I'm here to educate you how banking system works in real life. I don't deal with mumbo jumbo conceptualization bullshits.

Banks need reserve/deposit before they can make loans. Period. US Treasury is the most liquid market in the US. Trades are settled through clearing house same day. Do you think primary dealer just create money out of nothing to settle for those bonds? Please stop idiot. The more you post, more stupidity you show.

How the hell can banks pay interest on your saving if they do not use it to lend or invest? Are you fucking dense?

 

[akphidelt]

Banks swap reserves through Fed funds every night. Banks are short in reserve can borrow and banks has excess reserve can lend, so technically, they do lend reserves. You have demonstrated a totally lack of understanding how banking system work yet you keep spewing your stupidity 24/7. Don't you ever get tired of being exposed as a little dumb fuck?

What you have read, told, heard.....is irrelevant to me. I'm here to educate you how banking system works in real life. I don't deal with mumbo jumbo conceptualization bullshits.

Banks need reserve/deposit before they can make loans. Period. US Treasury is the most liquid market in the US. Trades are settled through clearing house same day. Do you think primary dealer just create money out of nothing to settle for those bonds? Please stop idiot. The more you post, more stupidity you show.

How the hell can banks pay interest on your saving if they do not use it to lend or invest? Are you fucking dense?

Banks can pay interest on your savings because it's cheaper than paying interest on borrowing reserves. Deposits do not give them the ability to make loans.

And yes banks do lend reserves to each other even though that was not the context we were talking about. I love how you jump from topic to topic trying to backtrack out of your stupidity.

Trust me I know more about the banking system than you'll ever be able to comprehend in your life.

Banks do not need reserves/deposits before they make loans. They need capital. You have a lot to learn old man.

 

[snoop]

Banks can pay interest on your savings because it's cheaper than paying interest on borrowing reserves. Deposits do not give them the ability to make loans.

Banks use your and my deposit to make loans. Interest rate they make from loans is higher than the rate they pay you and me. How come you do not understand this simple banking concept is beyond me. Once your money is in the bank, it's your loan to the bank. They can do whatever they want it.

And yes banks do lend reserves to each other even though that was not the context we were talking about. I love how you jump from topic to topic trying to backtrack out of your stupidity.

LOL. Once the bitch is exposed as a little dumb fuck, he quickly spin it to something else.

Trust me I know more about the banking system than you'll ever be able to comprehend in your life.

And why do I have to point out your stupidity everyday? Trust you?

Banks do not need reserves/deposits before they make loans. They need capital. You have a lot to learn old man.

Banks do need reverse/deposit before they can make loans, and banks do need to comply with capital requirement.

Do you realize how absurd your stupid theory is? If banks need capital aka money, meaning, they already have the money/reserve/deposit ready to make loans.

Just stop fucktard. It's getting embarrassing.

 

[akphidelt]

Banks use your and my deposit to make loans. Interest rate they make from loans is higher than the rate they pay you and me. How come you do not understand this simple banking concept is beyond me. Once your money is in the bank, it's your loan to the bank. They can do whatever they want it.

Banks do not use our deposits to make loans. You are dumb!

LOL. Once the bitch is exposed as a little dumb fuck, he quickly spin it to something else.

You've never exposed anything other than your own stupidity.

And why do I have to point out your stupidity everyday? Trust you?

Because it's apparent you do not understand this.

Banks do need reverse/deposit before they can make loans, and banks do need to comply with capital requirement.

Banks do not need deposits before they can make loans. Are you going to keep being dumb or listen?

Do you realize how absurd your stupid theory is? If banks need capital aka money, meaning, they already have the money/reserve/deposit ready to make loans.

They don't have a deposit, lol. They do have money!! Good job on that one.

Just stop fucktard. It's getting embarrassing.

Quit trying to act like me. I know you want to be me, but your stalking and constant harassing of me is getting a little creepy.

 

[snoop]

Banks do not use our deposits to make loans. You are dumb!

What do you call your saving account? Is it not deposit?

You've never exposed anything other than your own stupidity.

You're dumb as fuck, and it's been proven for a million times, let's see who is the fuckard come in to cheer you now.

Because it's apparent you do not understand this.

LMAO. That's a good one.

Banks do not need deposits before they can make loans. Are you going to keep being dumb or listen?

Banks capital is their own reserve/deposit. Fucktard is taking pride of being stupid everyday.

They don't have a deposit, lol. They do have money!! Good job on that one.

Money is reserve. They do have resverve before they can make loans.

Quit trying to act like me. I know you want to be me, but your stalking and constant harassing of me is getting a little creepy.

Stop acting like you know what you're talking about because you don't. idiot.

And keep crying little pussy.