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Old May 27th, 2012, 12:12 PM   #41
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Originally Posted by imaginethat View Post
What are US reserve requirements, Fayt?


Oh yes because I'm a fu*#$king idiot who didn't study for my Ron Paul federal reserve exam today by Dr. imaginethat. The relevance of this is clearly non apparent. What's your point? Are you still a supporter of the gold standard? Give us both something to work with.
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Old May 27th, 2012, 12:25 PM   #42
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Quote:
Originally Posted by imaginethat' timestamp='1338148924' post='404717

What are US reserve requirements, Fayt?


Oh yes because I'm a fu*#$king idiot who didn't study for my Ron Paul federal reserve exam today by Dr. imaginethat. The relevance of this is clearly non apparent. What's your point? Are you still a supporter of the gold standard? Give us both something to work with.


What are US reserve requirements?



You brought it up; "... it depends on rather your nation operates on fractional reserve banking."



So, what are US reserve requirements? If you don't know, just say so.
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Old May 27th, 2012, 12:27 PM   #43
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This is turning into yet another IT/Faytfest
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Old May 27th, 2012, 12:50 PM   #44
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Quote:
Originally Posted by imaginethat View Post
Quote:
Originally Posted by Fayt' timestamp='1338149570' post='404721

[quote name='imaginethat' timestamp='1338148924' post='404717']

What are US reserve requirements, Fayt?


Oh yes because I'm a fu*#$king idiot who didn't study for my Ron Paul federal reserve exam today by Dr. imaginethat. The relevance of this is clearly non apparent. What's your point? Are you still a supporter of the gold standard? Give us both something to work with.


What are US reserve requirements?



You brought it up; "... it depends on rather your nation operates on fractional reserve banking."



So, what are US reserve requirements? If you don't know, just say so.

[/quote]



If you want to know just google it. I'm not your wikipedia
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Old May 27th, 2012, 01:15 PM   #45
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Quote:
Originally Posted by Fayt View Post
Quote:
Originally Posted by imaginethat' timestamp='1338150357' post='404723

[quote name='Fayt' timestamp='1338149570' post='404721']

[quote name='imaginethat' timestamp='1338148924' post='404717']

What are US reserve requirements, Fayt?


Oh yes because I'm a fu*#$king idiot who didn't study for my Ron Paul federal reserve exam today by Dr. imaginethat. The relevance of this is clearly non apparent. What's your point? Are you still a supporter of the gold standard? Give us both something to work with.


What are US reserve requirements?



You brought it up; "... it depends on rather your nation operates on fractional reserve banking."



So, what are US reserve requirements? If you don't know, just say so.

[/quote]



If you want to know just google it. I'm not your wikipedia

[/quote]



I know what it is. The question is: Do you?
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Old May 27th, 2012, 01:35 PM   #46
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Quote:
Originally Posted by imaginethat View Post
Quote:
Originally Posted by Fayt' timestamp='1338151808' post='404738

[quote name='imaginethat' timestamp='1338150357' post='404723']

[quote name='Fayt' timestamp='1338149570' post='404721']

[quote name='imaginethat' timestamp='1338148924' post='404717']

What are US reserve requirements, Fayt?


Oh yes because I'm a fu*#$king idiot who didn't study for my Ron Paul federal reserve exam today by Dr. imaginethat. The relevance of this is clearly non apparent. What's your point? Are you still a supporter of the gold standard? Give us both something to work with.


What are US reserve requirements?



You brought it up; "... it depends on rather your nation operates on fractional reserve banking."



So, what are US reserve requirements? If you don't know, just say so.

[/quote]



If you want to know just google it. I'm not your wikipedia

[/quote]



I know what it is. The question is: Do you?

[/quote]



This is why I asked what's your point.
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Old May 27th, 2012, 03:42 PM   #47
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Quote:
Originally Posted by Fayt View Post
Quote:
Originally Posted by imaginethat' timestamp='1338153320' post='404747

[quote name='Fayt' timestamp='1338151808' post='404738']

[quote name='imaginethat' timestamp='1338150357' post='404723']

[quote name='Fayt' timestamp='1338149570' post='404721']

[quote name='imaginethat' timestamp='1338148924' post='404717']

What are US reserve requirements, Fayt?


Oh yes because I'm a fu*#$king idiot who didn't study for my Ron Paul federal reserve exam today by Dr. imaginethat. The relevance of this is clearly non apparent. What's your point? Are you still a supporter of the gold standard? Give us both something to work with.


What are US reserve requirements?



You brought it up; "... it depends on rather your nation operates on fractional reserve banking."



So, what are US reserve requirements? If you don't know, just say so.

[/quote]



If you want to know just google it. I'm not your wikipedia

[/quote]



I know what it is. The question is: Do you?

[/quote]



This is why I asked what's your point.

[/quote]



OK, you don't, yet you speak of fractional banking and the reserve requirements imposed on banks ... without knowing what they are.



Just for a baseline definition, when a bank loans more money that it holds, that is fractional banking. The "fraction" in fractional banking is the fraction, the percentage of cash on hand compared to the loans outstanding. The Federal Reserve Board has set the required reserve percentages. Here are the current reserve requirements:







If you have less than $11.5 million in the bank, it's not hyperbolic to say: Your money is not in the bank. Your money has been converted to debt. You hold a claim to the debt. The reserve requirements are adjusted from time to time. A history of the adjustments since 1959 can be found here. These are the most recent changes:







So, reserve requirements are for all practical purposes: Zero. Banks have next to no limits on how much currency they can create through making loans. And, they've created boatloads of currency through making loans.







The chart is a little difficult to read, but from about 1971 to now, the monetary base is almost 5,000 times greater. Prior to 1971, the growth rate of the currency and the money base arguably matched population growth, on average. The real value of goods, services and land values our nation possesses did not increase by almost 5,000 times in the last 40 years. The currency was created by fractional reserve banks loaning currency to a wide range of customers.



When loans are made, and currency is put into circulation, the currency required to pay the interest was not created, and that's why Bernacke and Krugman say "a little inflation is necessary." Sure it's necessary ... to pay the interest on the loans, the created currency. So, the creators of currency have at their disposal a very powerful tool: creating or not creating currency to pay the interest on the loans. This power is how central banks have a stranglehold on the economy.



If we trace the origin of currency, the trail ultimately will lead to the Fed. And all the currency the Fed creates, as well as your neighborhood bank, is based on someone's promise to repay a debt incurred by someone.



This really is simple to understand, yet it challenges most people's basic understanding of currency. Currency has value in the present system because somebody has promised someone else that he or she will make good on a loan. And because the ability to repay is the basis for the value of currency, to say that currency represents debt is spot on.



A system of fractional banking has created currency disconnected from any physical collateral since 1913. Fiat money is the rule of the day, and fiat money is created by making a loan to someone who promises to repay the loan with interest.



Currency, money, is debt.
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Old May 27th, 2012, 06:18 PM   #48
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Yes I know what fractional reserve banking is. And even though I didn't explained it in as much detail as you did, I thought I was still accurate when I explained reserve requirements. I get that currency is debt, but is wealth debt? The wealth that is accumulated from turning a log into paper, a piece of wood into an axe, steel into a care, is that debt too imaginethat?
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Old May 28th, 2012, 09:54 AM   #49
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Originally Posted by Fayt View Post
Yes I know what fractional reserve banking is. And even though I didn't explained it in as much detail as you did, I thought I was still accurate when I explained reserve requirements. I get that currency is debt, but is wealth debt? The wealth that is accumulated from turning a log into paper, a piece of wood into an axe, steel into a care, is that debt too imaginethat?


No.



Wealth and fiat currency are not equivalent. They are opposites.



I missed your explaining reserve requirements and the negative effect they have on the economy by permitting the creation of floods of fiat money. I've seen you defend, repeatedly, the creation of fiat money.
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Old May 28th, 2012, 10:01 AM   #50
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Quote:
Originally Posted by Fayt' timestamp='1338171529' post='404796

Yes I know what fractional reserve banking is. And even though I didn't explained it in as much detail as you did, I thought I was still accurate when I explained reserve requirements. I get that currency is debt, but is wealth debt? The wealth that is accumulated from turning a log into paper, a piece of wood into an axe, steel into a care, is that debt too imaginethat?


No.



Wealth and fiat currency are not equivalent. They are opposites.



I missed your explaining reserve requirements and the negative effect they have on the economy by permitting the creation of floods of fiat money. I've seen you defend, repeatedly, the creation of fiat money.


I figured, I'll read your thread later because I'm just to occupied with other threads right now. Okay imaginethat
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