| Subject: | Re: [socialcredit] Reply to Jessop addendum | | Date: | Tuesday, May 3, 2005 08:13:04 (+0100) | | From: | Timothy Carpenter <timbeau_hk @........uk>
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| In reply to: | Message 1189 (written by John G Rawson) |
Re: [socialcredit] Reply to Jessop addendum
Dear John,
Which is fine, because I never said that.
It could be another asset that permits the bank to lend, depending on the conditions in its banking license. In the UK and in many countries a bank uses a risk and liquidity rated range of assets, higher risk and/or liquidity means lower lending ratios against that asset.
Tim
On 2/5/05 10:33 pm, "John G Rawson" <johngrawson@hotmail.com> wrote:
To "butt in", deposits have nothing to do with "allowing loans". Deposits are bank liabilities.
John R.
>From: Timothy Carpenter <timbeau_hk@yahoo.co.uk> >Reply-To: socialcredit@elistas.com >To: <socialcredit@elistas.com> >Subject: Re: [socialcredit] Reply to Jessop addendum >Date: Mon, 02 May 2005 21:19:25 +0100 > >Dear Joe, > >My understanding is that, using your example, the $1000 deposit would permit >the bank, within its remit and licence, to issue loans of $5000 in total and >charge 5% on it. The depositor would see 2.5% of $1000. That $5000 does not >come from deposits, but is created on paper. Rarely are loans withdrawn as >legal tender so the issue of vault cash seldom comes into it, hence the >reserve ratios! > >These days loans are weighted by risk, not just a %age, so a loan on a house >is secured and allows more lending, while a loan on a car is not really >(could crash but will depreciate) and has higher risk. > >Tim > >On 2/5/05 4:31 pm, "Joe Thomson" <thomsonhiyu@shaw.ca> wrote: > > > I should add, before anyone gets the impression that my previous reply to > > Jessop is concentrating on the sideline of 'interest', that the important > > point to be taken is that LOANS CREATE DEPOSITS. > > > > Joe > > --------------------------------------------------------------------- > > You're subscribed to this list with the email timbeau_hk@yahoo.co.uk > > To unsubscribe, send a message to > > socialcredit-unsubscribe@elistas.com > > For more information, visit http://www.eListas.com/list/socialcredit > > > > > > >--------------------------------------------------------------------- >You're subscribed to this list with the email johngrawson@hotmail.com >To unsubscribe, send a message to >socialcredit-unsubscribe@elistas.com >For more information, visit http://www.eListas.com/list/socialcredit
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