Cyprus-Forum.com

[cyprusgrump]

So your perception is wrong! Banks can create money out of thin air by creating debt .... 'ad infinitum' !

So how do banks go bankrupt when (according to you) they can simply create money out of thin air ad infinitum to cover the debts or pay back creditors...?

And Bankers Bonuses obvs.

[Lordo]

This makes very interesting reading. I think the title explains what it is.


https://www.economicsdiscussion.net/money-supply/commercial-banks/creation-of-money-by-commercial-bank/17258

[Robin Hood]

So your perception is wrong! Banks can create money out of thin air by creating debt .... 'ad infinitum' !

So how do banks go bankrupt when (according to you) they can simply create money out of thin air ad infinitum to cover the debts or pay back creditors...?

And Bankers Bonuses obvs.

That video is what you could call 'collective expert opinions' and I tend to believe them as having a greater collective knowledge than I do. If you think you know otherwise then give us your expert opinion! with something credible to back it ..... like I did.

[Maximus]

So your perception is wrong! Banks can create money out of thin air by creating debt .... 'ad infinitum' !

So how do banks go bankrupt when (according to you) they can simply create money out of thin air ad infinitum to cover the debts or pay back creditors...?

And Bankers Bonuses obvs.

That video is what you could call 'collective expert opinions' and I tend to believe them as having a greater collective knowledge than I do. If you think you know otherwise then give us your expert opinion! with something credible to back it ..... like I did.

This is about as credible as it can get or it all become completely incredulous.

Can banks create as much money as they like? No, they can’t.
https://www.bankofengland.co.uk/explain ... ir%20loans.

Of course they can’t and I did not suggest they could ..... you are trying to expand the envelope of stupid comments.

Did you say I was expanding the envelope of stupid comments......

[Londonrake]

I'm sure to get a bollocking for this but.................... a moment of light relief from a heady subject:


https://www.youtube.com/watch?v=pENxsLVR_Xs

.

For once you are not far off the mark!

Well, I tried.

Actually, when it comes to you I think, over many years, I've been uncomfortably "on the mark" - shining a light on some of your "facts". Mr insomnia really.

I've listened to your sermons on this subject many times over the years. It's not one that excites me to be honest. I've always wondered though - ultimately - what's your point? Other than a bit of what you perceive as "shooting people down" self fulfilment that is?

Let's be honest with each other. It was never going to last.

Remember. You asked for this.

[Robin Hood]

Maximus

Can banks create as much money as they like? No, they can’t.
https://www.bankofengland.co.uk/explain ... ir%20loans.
]

Of course they can’t and I did not suggest they could ..... you are trying to expand the envelope of stupid comments.

Did you say I was expanding the envelope of stupid comments......

You are getting stupid! There is NOTHING in the banking regulations to prevent a private bank creating money 'ad-infinitum' only the collective wish to prevent such a scenario because of the consequences on the banking system as a whole. This is why they balance the collective Central Banks books for each Bank every day.

So I repeat ..... there is nothing IN THE BANKING REGULATION to preveny a private bank creating money ad-infinitum.

[Robin Hood]

I'm sure to get a bollocking for this but.................... a moment of light relief from a heady subject:


https://www.youtube.com/watch?v=pENxsLVR_Xs

.

For once you are not far off the mark!

Well, I tried.

Actually, when it comes to you I think, over many years, I've been uncomfortably "on the mark" - shining a light on some of your "facts". Mr insomnia really.

I've listened to your sermons on this subject many times over the years. It's not one that excites me to be honest. I've always wondered though - ultimately - what's your point? Other than a bit of what you perceive as "shooting people down" self fulfilment that is?

Let's be honest with each other. It was never going to last.

Remember. You asked for this.

Jesus .... you are a bore! Your contributions to any thread are attacks on individuals with your trade mark sarcasm and snide mocking remarks.

[Londonrake]

Jesus .... you are a bore! Your contributions to any thread are attacks on individuals with your trade mark sarcasm and snide mocking remarks.

Just to set out my wares on where this - as it always inevitably does - is descending to.

What constitutes a "bore" is a matter of perspective. And as far as attacks on individuals go you're being hypocritical (that's novel!). Take a look back since your arrival and read as, once you settled back in, how yours started to unfold.

I welcomed you returning to this forum, after your extensive absence. Despite the past and determined to get along, initially carefully avoiding potential areas of conflict. Naivety. It didn't and never has worked. You're somebody who believes his word on any subject is sacrosanct. Whether it be banking, flying or, occasionally, total nonsense - you are the expert, contemptuously dismissive of anybody else's actual experience or views.

You're not averse to laying into other people and even in this thread, where you have 2 fresh "victims", your tone is already turning to ad hominem barbs. You don't like people asking awkward questions and get livid if they suggest you're wrong. They should be respectful and sit quietly among the admiring congregation. As a long term (15 years?) dispassionate observer I can attest the fact that the longer the exchange with you the greater chance a thread will descend into acrimony. I'd go as far as to say it's inevitable.

My question "What's your point?" regarding the extensive money creation expertise you're sharing stands. Like most, I can't do anything about it, so am unlikely to join any angry, Lordo-like revolution though.

It wasn't long after your arrival that - on a bit of tongue-in-cheek trolling by another member - you jumped on the bandwagon of one of your favourite themes (just like money creation). Ipso facto, all ex-Forces people have been programmed to robotically accept, blah, blah (that's a grudge based thing, of which you have many).

We also had the ole "I only post FACTS, not OPINION!". When of course the essence - and interesting aspect of any forum - is discussion, revolving around people's opinions. Is everybody to just post links to external, 3rd party views? I'm very familiar where you get most of yours. From highly prejudice, partisan "independent" opinion shops. What you post quite often doesn't amount to "facts".

Anyway - here's part of mine regarding you.

So......................... here we go, yet again - ehh?.

[cyprusgrump]

So your perception is wrong! Banks can create money out of thin air by creating debt .... 'ad infinitum' !

So how do banks go bankrupt when (according to you) they can simply create money out of thin air ad infinitum to cover the debts or pay back creditors...?

And Bankers Bonuses obvs.

That video is what you could call 'collective expert opinions' and I tend to believe them as having a greater collective knowledge than I do. If you think you know otherwise then give us your expert opinion! with something credible to back it ..... like I did.

You have already been given a credible answer but as normal you choose to ignore it as it doesn't agree with your personal view...

Can banks create as much money as they like?

No, they can’t.

Regulation limits how much money banks can create. For example, they have to hold a certain amount of financial resources, called capital, in case people default on their loans. These limits have become stricter since the financial crisis.

Banks also risk going bust if they lend out money left, right and centre. For instance, people borrowing money will probably spend it. If they make payments to people who have accounts at other banks, their bank will need to transfer the money to that other bank by sending it some of its electronic central bank money. So if one bank lends out too much money, at some point it will not have enough electronic money in its account with us to pay the other banks.

Answered my question about banks going bankrupt too!

[Robin Hood]

CG. Then. if banks cannot create money ad-infinitum explain how the £2.5 trillion UK National came into being ...... and who holds the debt? I think you will find it is the Banks! And the private debt is even larger! Where does all this money come from?