Iceland Stuns Banks: Plans To Take Back The Power To Create Money

Zero Hedge ^ | 4-1-15 | Raul Ilargi Meijer

[Sherman Logan]

Do cops really arrest you if you don’t pay back a loan? I thought we gave up debtors’ prison a couple decades ago.

[Fungi]

You live for posts like this.

[Toddsterpatriot]

They loan out many times the amount of deposited money.

No they don't. Every loan is fully funded.

Thus creating money out of nothing.

Nope. Can't happen.

[Toddsterpatriot]

They take deposits and loan out a multiple of them.

Impossible. Fractional reserve means they hold a fraction of deposits. Which means they loan less than their deposits, not multiples.

In the US the reserve requirements range from 3% to 10%. So the money lent is 10x to 30x that deposited.

Nope. Loans would be 90%-97% of deposits, using your numbers.

I really don't understand this stuff.

I know.

[Toddsterpatriot]

You should study how our monetary system really works, NO DEPOSITS are EVER Loaned,

I have, they are.

All Loans are funded with Freshly Created Credit

Sure. Until the loan check clears. Then that freshly created credit has to be covered by actual reserves (deposits) at the Fed.

Honest people call it Theft.

Confused people call it that.

[Paladin2]

Banker gangsters rank right up there with govt gangsters. Who to trust?

[Paladin2]

BINGO.....

[Toddsterpatriot]

Imagine having ten bucks and being able to loan out $300 in credit to other people while charging them interest on that imaginary money.

You could try that. After the first $10 in loan checks clears, your bouncing loan checks will put you out of business....and probably in jail.

That's literally what banks do.

LOL! Hilarious!

[Toddsterpatriot]

Lots of idiocy for me to point out.

[Paladin2]

Please account for the progress of time and the flow of money in your analysis.

[familyop]

"But is giving this power to the central government any kind of solution?"

Voters have a little control over government, if they'll take it. Where gangsters control a treasury, the people have no control at all.

[Stentor]

I’ll have to wait for someone I trust to explain this to me. This financial world bank stuff makes my head spin.

Money vs Currency - Hidden Secrets Of Money Ep 1 - Mike Maloney

Start with this youtube video and watch the rest of the series.

[Toddsterpatriot]

So what happens when banks can only loan deposits, or possibly a fraction of them?

It's called modern banking.

[Fungi]

What are you waiting for?

[Toddsterpatriot]

A bank takes in a $10 deposit. A customer borrows $10. The check clears, the money leaves the banks account at the Fed.

The next loan check is received at the Fed, with no available funds to clear it. It bounces. So do all of the following loan checks.

The bank is seized by the FDIC.

[Toddsterpatriot]

Comprehension to dawn......

[Stentor]

They take deposits and loan out a portion of them.

If you don't know that's not true you're a dumbass. The reserve requirement is a maximum of 10%. Some countries have no reserve requirements. Since when is 9x a portion? What is your purpose in disseminating misinformation?

[Paladin2]

Some of the loan proceeds hit a bank somewhere where some fraction is available to fund a further loan. Dynamics are involved here

[catnipman]

“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?”

All Iceland is doing is what the rest of the world already does: vests the power to create fiat currency in the hands of a central bank that is a creature of the state. Same thing U.S. does now.

To claim what Iceland is contemplating doing is stunning, revolutionary, etc. is just plain stupidity on the part of the author, who apparently is completely clueless.

[Fungi]

My point exactly. Thank you.