Tag Archives: banks

How much money can banks create – Banking 101…Positive Money

How much money can banks create – Banking 101 (Part 4)

Published on Jan 18, 2013

http://www.positivemoney.org/
What does actually limit the ability of banks to increase the money supply?
In this video you’ll see that the type of reserve ratio that’s discussed in the textbooks has never even existed in the UK. We’ll see that the liquidity ratios that did exist have been reduced and eventually abolished, and that even when they did exist, they only limited the speed that the money supply could increase, but put no limit on the total size that it could grow to.

You’ll learn that the Capital Adequacy Ratios and Basel accords are about preventing banks from going bust when loans go bad, rather than limiting their dangerous lending or limiting how much money they create through lending. And although the capital adequacy requirements can restrain lending after a banking crisis, it doesn’t do anything to restrain lending in a boom.

You’ll also see that there is no natural limit on how quickly the banks can create money. They know that even if they don’t have the actual central bank reserves to make payments, they’ll be able to borrow those reserves from other banks, or even the central bank.

All this comes together to imply that the only thing that truly limits the creation of money, is the willingness of banks to lend. And their willingness to lend depends on their confidence.

In other words, the money supply of the nation depends on the mood swings of banks and the senior bankers that run them. This is surely an insane way to run an economy.

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Email: mira[at]positivemoney.org

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Positive Money is a not-for-profit research and campaign group. They work to raise awareness of the connections between our current monetary and banking system and the serious social, economic and ecological problems that face the UK and the world today. In particular they focus on the role of banks in creating the nation’s money supply through the accounting process they use when they make loans – an aspect of banking which is poorly understood. Positive Money believe these fundamental flaws are at the root of – or a major contributor to – problems of poverty, excessive debt, growing inequality and environmental degradation. For more information, please visit: http://www.positivemoney.org/

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How to Make a Million Dollars an Hour….LES LEOPOLD

How to Make a Million Dollars an Hour – Hedge Funds are Siphoning Away America’s Wealth–and You Can, Too

http://www.kobobooks.com

How hedge funds make money by taking it from the rest of us-and how you can join them!

Top hedge fund managers make more than Oprah, Rupert Murdoch, and A-Rod combined-but they aren’t running news and entertainment empires or playing baseball for the New York Yankees. Aren’t you curious about how these hedge fund dudes make so much doing who knows what? You may even wonder if you can get there, too. After all, this is America!

This book gives you the answers in a twelve-step guide to accumulating vast riches the way hedge fund managers do-by playing trillion-dollar poker with a marked deck. Through each easy step, you’ll learn the sleight of hand and disregard for basic morality you’ll need to move from making tens of dollars an hour to millions an hour! Along the way, you’ll also question whether these hedge fund moguls make markets work better-as they and their apologists insist-or cause instability, siphon off capital, and destroy value without adding so much as a single widget to the economy.

  • Takes a fascinating tour of the wild side of fantasy finance to explain just how hedge fund managers make so much money-and whether or not the million-an-hour crowd produces anything positive for society and the economy
  • Teaches you hedge fund secrets that make it possible to pull down astounding sums in the space of minutes-from rigging your bets to milking millions in special tax breaks-if you’re willing to bankrupt your morality for the cash
  • Counters many of the most common arguments about why speculating in financial markets is somehow “worth more” than creating entertainment, electronics, or consumer goods that consumers want
  • Written by Les Leopold, the popular AlterNet writer and author of The Looting of America

 

http://www.kobobooks.com/ebook/How-Make-Million-Dollars-Hour/book-InkCjfeGdU-GRWmnSddAhw/page1.html

Ponzi Planet: The Danger Debt Poses to the Western World…By Alexander Jung

Ponzi Planet: The Danger Debt Poses to the Western World

By Alexander Jung

Countries around the world, particularly in the West, are hopelessly in the red, with debt rising every day. Even worse, politicians seem paralyzed, unable — or unwilling — to do anything about it. It is a global disaster that threatens the immediate future. But there might be a way out.

When Carlo Ponzi, a dishwasher from Parma, Italy, immigrated to the United States in 1903, he had $2.50 in his pocket and a million-dollar dream in his head. He was able to fulfill that dream, at least temporarily.

Ponzi promised people that he would multiply their money in a miraculous way: by 50 percent in six weeks. With his carefully parted hair and charming accent, Ponzi beguiled investors and fueled their avarice. The first investors raked in fantastic returns. What they didn’t know was that Ponzi was simply using the next investors’ money to pay them their profits.

 

The scheme continued. Ten investors turned into 100, and 100 investors turned into 1,000, until the scam was discovered. Ponzi spent many years in prison, and he died a pauper in 1949. But his name remains important to every criminologist today — and every economist.

Economists use the term “Ponzi scheme” to describe a disastrous mechanism in which someone pays off old debt by constantly taking on new debt. The repayment of the debt — the most recent loans, plus interest — is deferred into the distant future, fueling an eternal process of debt refinancing.

It’s the classic pyramid, or snowball scheme, practiced by thousands of con artists after Ponzi. The most spectacular case was that of New York financier Bernard Madoff, who was responsible for losses of about $20 billion by 2008. Snowballs are set into motion, becoming bigger and bigger as they roll along. In the worst case, they end in an avalanche that takes everything else with it.

Western economies have not acted much differently than the fraudster Madoff. In 2011, they were virtually inundated with bad news and old sins. Almost everyone — in Europe and in the United States — has been living beyond their means, from consumers to politicians to entire countries. Governments have become servants to the markets upon which they have become dependent.

Bigger Snowballs

On an almost weekly basis, the reports have become more worrisome and the sums of money involved more staggering. Many are now concerned that, as 2012 begins, the snowballs will only get bigger — and roll faster: ….goto web

 

http://www.spiegel.de/international/world/ponzi-planet-the-danger-debt-poses-to-the-western-world-a-806772.html

FEDERAL-RESERVE-BANK-HAND-SIGNALS

FEDERAL-RESERVE-BANK-HAND-SIGNALS

Available in large poster format: www.zazzle.com/williambanzai7

Pedro Schwartz on the creation of money out of thin air

 

Pedro Schwartz on the creation of money out of thin air

 

GoldMoneyNews

Published on 19 Sep 2012Subscribe to our newsletter at http://www.goldmoney.com/goldresearch. GoldMoney’s James Turk interviews Prof. Pedro Schwartz who is the president of the Economic and Social Council of Madrid. They talk about bank regulation, the creation of money out of thin air and the beauty of the free market system.They discuss how banks have expanded despite of government regulation which Schwartz in large attributes to the granted privilege of fractional reserve lending. Using this procedure a bank can create loans above the actual amount of deposits at hand and therefore create new money. This also leads to fragility in the banking system and to boom and bust cycles. Schwartz argues for a leaner and more effective regulation of financial markets as the current regulation has not worked in regards to the financial crisis.They talk about the “tennis” between the Federal Reserve and the European Central Bank when it comes to the creating money out of thin air. Schwartz states that the ECB is disregarding the rules that were aimed to guard it from being influenced by political pressure. Despite the opposition of the German Bundesbank they are buying government bonds. This is equal to digital money printing and Schwartz scents that it is not being done for monetary policy, but for the stimulation of the economy which goes beyond the original remit of the bank.However despite the injections of new liquidity by the ECB Europe is still in recession, because interbank lending has dried up. That means that banks are parking much of the liquidity back at the ECB. The big question will be what will happen to inflation once the economy starts to pick up again and those funds find their way into the real economy. Schwartz also questions whether it is a productive business when banks can make a profit by borrowing money from the ECB at 1% interest and then turning around to buy government bond which yield 5% or 6%.A serious inflationary disaster will only be prevented if governments will succeed in reducing their deficits and stop selling bonds. Schwartz states that cutting government spending is the only viable solution to the problem. To accomplish this there has to be a change in social mentality so that people recognise that nothing is free and that the government sector has to shrink. In the end the market is the most efficient mechanism of allocating resources according to the wants and needs of people.This video was recorded on 14 September 2012 in Madrid.

 

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Usury: Making the Rich Avaricious & the Poor Poorer…108morris108

Usury: Making the Rich Avaricious & the Poor Poorer

Uploaded on Oct 13, 2010

This video explores the historical critique of Usury, its prohibition and some alternatives.

Usury – the lending of money at interest has been condemned throughout history by noble people of ALL faiths (Hindus, Buddhists, Jews, Muslims, Catholics, Greeks). It makes the poor poorer and gives rise to the most avaricious of lenders.

We are actually being told our wars are for the purpose of enriching these people – and this is presented to us as an acceptable reason (not in the video).

Instead of money being a medium of exchange, interest rates elevate money to being an end in itself.

It is strange that so many Jewish people are in the lending business, when lending at interest rates is treated with scorn in the Old Testament, although permissible in the event of lending to a non Jew for business purposes.

But nowadays we are all indebted, Jew and non Jew to interest rates for our housing and living expenses.

“In the Old Testament, usury is considered an “abominable thing,” listed next to rape, murder, robbery and adultery. (Ezekiel18:19-13).

The Ancient Greeks regulated interest, and then deregulated it. Upon deregulation, there was a catastrophic amount of unregulated debt which lead to the selling of Athenians into slavery. Plato (Laws, v. 742) and Aristotle (Politics, I, x, xi) both agreed that usury was immoral and unnatural…”

from: http://stopusuryinamerica.com/whatisusury.html

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BANKER OCCUPATION: by Stephen Lendman

BANKER OCCUPATION:
Waging Financial War on Humanity
by Stephen Lendman

http://www.claritypress.com/LendmanII.html

Stephen Lendman strikes to the heart of Wall
Street/government collusion to protect the
powerful and drive ordinary Americans into
the Third World ditch.

Here’s some straight talk on unaffordable
health care, unrepayable student debt,
bankrupt cities, money printing madness,
trillion dollar tax havens, IMF financial
terrorism, the austerity hoax, banksters’
market-rigging thievery, and the domestic
police, media and legislative repression set to
keep all that in place.

Table of Contents

Wall Street Runs America / 9

Class War in America / 15

The Austerity Hoax / 29

Trillions Stashed in Tax Havens / 34

Libor Scandal Reflects Cesspool of Financial Fraud / 38

IMF Financial Terrorism / 46

JPMorgan Chase on Capitol Hill / 58

George Soros—New World Order Confidence Man / 70

Goldman Sachs: Making Money by Stealing It / 77

Big Win for Predatory Healthcare Giants / 82

Debt Ceiling Roulette / 88

Money-Printing Madness / 94

US Cities Going Bankrupt / 104

America’s Great Divide Between Rich and Poor / 108

Hard Right Extremism in America and Europe / 113

Constitutionally Protected Symbolic Speech / 121

Washington Targets Occupy Wall Street / 125

Targeting Journalists covering OWS Protests / 130

Social Justice on Trial in Canada / 135

French Workers’ Struggles for Justice / 139

“Grand Bargain” Betrayal Coming / 142

Legislating Tyranny in America / 147

Banker Occupation of Greece / 158

Responsible New York Banking / 165

Public Banking Works / 170

Franklin Roosevelt’s Second Bill of Rights / 175