Fractional reserve lending (and debt created money) make banks FAR MORE money than they lose through inflation. Stick to what you know. This ain't it.
Ahhhh, so now at least we got an admission that they lose and we win through inflation on the long term loans. This is the first step in pulling yer head outta that dark furry place it's stuck in right now. Ok, since you now admit that they lose through inflation, how else would you "let" banks make money? Cuz - 1-they lose money on there long term loans due to inflation 2- they pay out interest on money held in their banks 3- they have operating expenses I see 2 ways- 1- fractiional reserve banking 2- charging huuuuge interest rates on their loans Do you have another solution?
Aaaaaaaahahahahahahahahahha Yeah the banks are getting murdered tightening and loosening money supply so they can pick up your home, your business and your car for pennies on the dollar and call it the business cycle.. which they immorally and illegally manufacture
Ok, I even did the math for you guys - say I borrow from you 30k, 30 yr loan at 6%, and 5% inflation. How much do those dollars buy you, year by year ? payback might look like this 1st year $1060 2nd 1060 x .95= 1007 3rd 1007 x .95=956 4th = 908 5th = 862 6th = 819 7 = 778 8 =739 9 = 702 10 = 667 11 = 634 12 = 602 13 = 572 14 = 543 15 = 516 16 = 490 17 = 465 18 = 442 19 = 420 20 = 399 21 = 379 22 = 360 23 = 342 24 = 325 25 = 309 26 = 294 27 = 279 28 = 265 29 = 252 30 = 239 For a payback in adjusted dollars of a whopping $16,625...... Does it look like we're getting gouged here? Again, so how else are the banks gonna make money? Any solutions? Again, I see only 2 1-fractional reserve banking, taking our loan and multiplying it , since we can see that by the third year, they're losing money, and getting worse every year... 2- no fractional reserve banking and charging huge interest rates, that will result in the same "confiscation" of our property when even the slightest hiccup in ones' income happens. If you have a 3rd solution, I'd love to hear it.......
You'll have to forgive Haroki.. he's a little dimwitted.. we were talking about the Fed issuing money and the government taxing the people to pay back interest on something they could produce for nothing.. yeah I'm sure there are no private interests reaping billions off that little scam
ok my numbers were bad. we'll use my own home loan 1-34200 2-32490 3-30865 4-29321 5-27854 6-26461 7-25137 8-23880 9-22686 10-21552 11-20474 12-19450 13-18477 14-17553 15-16676 16-15842 17-15050 18-14297 19-13582 2012903 21-12258 22-11645 23-11063 24-10510 25-9984 26-9485 27-9011 28-8560 29-8132 30-7725 For a total of.... $537,123 on a $525,00 loan. Basically interest free to me. Why is this bad?
Have any numbers to back this up? remember that at present, the Fed only holds< 10% of our debts. Foreigners hold nearly 50% of our debt through bonds, which we pay back with a devalued dollar by the way.....
You've had the way of the world explained to you for the bulk of this thread Haroki.. you prefer to live in your own little fantasy world.. you argue like a Christian fundamentalist.. glassy eyed ignorance at it's finest.. baka gaijin