jimmyrtle (November 30, 1999 at 12:00 am)

@chapsroc Yes, a bank borrowing is a liability, just as a customer deposit is.Is the money in my bank account real? Is the money I borrow from the bank real?Do you feel that the only real money is FRNs? Do you imagine that 100 or 150 years ago the money supply was only physical currency?That there was no fractional reserve lending?

chapsroc (November 30, 1999 at 12:00 am)

@jimmyrtle , You know thief and looting, that's all. Bank cross-lending loans are not "deposits", they are fully obligated liability with negative cash value. Using my BoA example, the 10x multiplier lending of $20 trillion loans, ONLY BoA original $1.8 trillion loans were fully backed by "physical money", the other $18.2 trillion are just electronic "credits", none existent "money", the banks are lending out electronic numbers, not money, and that's looting in my book. End of discussion.

jimmyrtle (November 30, 1999 at 12:00 am)

@chapsroc They don't loan the same dollar to 10 different people. Sorry.

jimmyrtle (November 30, 1999 at 12:00 am)

@chapsroc Glorifying? I understand modern banking.Banks accept deposits and loan out a fraction. No glory, just the facts.Every loan (asset) is balanced by a deposit (liability). If you imagine banks can create loans (assets) out of thin air, you're wrong.Loans and deposits are not stealing. Sorry.

chapsroc (November 30, 1999 at 12:00 am)

@chapsroc Leasing the same car to 10 different people at the same time, would land you in jail. Only the U.S. banksters can get away with stealing and looting "lending" out fake and fraudulent electronic numbers as "money" and collecting interests on it.

chapsroc (November 30, 1999 at 12:00 am)

@jimmyrtle Bullshit! There you go again, you're glorifying fractional-reserve banking practice again. When banks pass out the same money to other banks in a circle, THERE ARE NO MONEY (OR ASSET) TO BACK UP THEIR LENDING. It is like you are leasing the same car to 10 difference people at the same which is impossible LEGALLY OR TECHNICALLY. The banks can do that BECAUSE THEY ARE LENDING OUT ELECTRONIC CREDIT NUMBERS, NOT PHYSICAL MONEY, FAKE AND THE AS SAME AS STEALING.

jimmyrtle (November 30, 1999 at 12:00 am)

@chapsroc Yes, once you admitted your error about BoA, you showed you understand the money multiplier. Good job!Every loan is fully funded. Money is not created out of thin air.Every loan (asset) is backed by a deposit(liability) or other borrowing(liability). Banks don't lend out money they don't have. Lending is not looting.

chapsroc (November 30, 1999 at 12:00 am)

@jimmyrtle , not at all, I did acknowledge you on technicality that you were right BoA could lend out 90% of cash reserve of $2 trillion ( $1,8 trillion not $20 trillion), but I also pointed out the 10x multiplier through banks cross-lending which legally allow banks to treat bank loans as if their own "cash" to create new additional $18 trillion out of thin air, and lending out money that the banks didn't have. Lending out non-existent money 10x times IS U.S. BANKS LOOTING FEST.

jimmyrtle (November 30, 1999 at 12:00 am)

@chapsroc I glorify fractional reserve banking?That's funny. You get that from the fact that I caughtyour silly claim about BoA?

chapsroc (November 30, 1999 at 12:00 am)

@jimmyrtle , reading and understanding are two very different activities. I doubt that you're even a book worm. Here, already I ran into two Friedmanian adherents, you @jimmyrtle and @johnsurs22 with very different views of MF. You claim you can "read MF books", @johnsurs22 claimed to have followed MF "closely". You glorify fractional-reserve banking based on your reading of MF books; @johnsurs22 claimed that MF "would be the first one to oppose it." Both of you are followers not thinkers.