Posted on 04/02/2015 7:10:35 PM PDT by aMorePerfectUnion
Please don't miss the importance of this at this time in history.
Makes ‘create money’ when they make loans.
So the banks in Iceland won’t be making any loans? In that case, they don’t need to take deposits.
Maybe they can just issue credit cards and charge fees?
So now the government is going to control any kind of loan, and will know all sorts of stuff about your finances. Lovely.
Welcome the Greek-Icelandic Axis.
I’ll have to wait for someone I trust to explain this to me. This financial world bank stuff makes my head spin.
“Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank.”
Your point is not what the article said. Our central bank, the privately held “federal reserve” has always had that power, printing fiat money then charging interest on it. How does that change anything in the case of Iceland?
They USA can not fix itself - economically or socially - until the Federal Reserve is ended.
The Fed is the foundation of progressive plans for government. Until its ended, conservatives will lose every political battle.
Just an aside, the guy’s name is Frosti.
Excellent idea!
If you want to take out a loan, parliament has to vote to give it to you.....or not.
is now planning to take the power of printing money away from bankers.
Bankers don't print money. They take deposits and loan out a portion of them.
The crooks at the bank or the crooks at the government.
They loan out many times the amount of deposited money.
Thus creating money out of nothing.
Nice work if you can get it.
But you knew that already.
As old Hickory Stick would say: they are a den of vipers
Not exactly. They take deposits and loan out a multiple of them.
In the US the reserve requirements range from 3% to 10%. So the money lent is 10x to 30x that deposited.
Or something like that. I really don't understand this stuff.
But is giving this power to the central government any kind of solution?
They take deposits and loan out a portion of them. ???
You should study how our monetary system really works, NO DEPOSITS are EVER Loaned, All Loans are funded with Freshly Created Credit, thereby diminishing the value of all existing specie on a constant basis, some call it “inflation”, Honest people call it Theft.
Old Hickory of course destroyed the Bank of the United States, depositing government funds in private pet banks as one of the first major examples of crony capitalism in our history. A major cause of the Panic of 1837, with a severe depression lasting into the mid-40s.
In the US the reserve requirements range from 3% to 10%. So the money lent is 10x to 30x that deposited.
LOL, nice work if you can get it.
Imagine having ten bucks and being able to loan out $300 in credit to other people while charging them interest on that imaginary money.
And then having cops come and arrest them for theft if they don't pay you back all of your imaginary money, plus interest, in real money.
That's literally what banks do.
So the message is it’s better to trust the government and politicians, than bankers. I don’t think that’s going to solve the problem.
Okey, dokey. So what happens when banks can only loan deposits, or possibly a fraction of them? Suddenly the amount of money available for loans is only 10% (or considerably less) of what’s available now.
What do YOU think that would do to the economy?
That is, BTW, where banking was stuck for thousands of years. Only with the early modern period and the development of the modern banking systems you hate did the world start climbing out of its previous level of poverty.
But we can go back to that if it pisses you off so much that its unfair for banks to loan more money than in their deposits.
Isn't privately held.
has always had that power, printing fiat money then charging interest on it.
The Fed doesn't lend FRNs to anyone. How would they charge interest on it?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.