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Hi Everyone
Taking up points raised by Bill Ryan and John Rawson I ask the question:- "If
the banking system is becoming more and more centralised into fewer and fewer
private hands, is this in the long term interests of the world's general
populace?"
The
monoply exerted by the banking system on the world's money supply at present is
being radically misapplied as witnessed by the vast amount of poverty in
countries like Indonesia where there is vast wealth of resources being exploited
for the benefit of those outside Indonesia. Surely concentration of the control
of the world's money supply into one single privately owned bank would really
ascerbate that problem?
Does anyone agree with
that analysis? or am I missing something in the arguments being
presented?
Bill Mc Gunnigle
----- Original Message -----
Sent: Tuesday, August 14, 2007 10:31
AM
Subject: Re: [socialcredit] U.S.
Economics Test
Thanks for making that clearer, Bill. That, of course, is why I object to
the term "fractional reserve" for the system, and why I suspect the bankers
encourage its use. "Nil reserve banking" or "creation banking" (pity the
latter is clumsy) would be a better description.
Regards. John R.
From: <william_b_ryan@yahoo.com>
Reply-To:
socialcredit@elistas.com
To:
socialcredit@elistas.com
Subject: Re: [socialcredit] U.S.
Economics Test
Date: Mon, 13 Aug 2007 06:45:48 -0700
(PDT)
>John, Douglas' point is correct. Beyond
regulatory
>requirements, a bank needs reserves only to
cover
>deposits lost to other banks, as they are lost.*
>Banks
of course individually gain and lose deposits to
>other banks, but if
a bank has no net loss of deposits
>as it is granting loans, it has no
need for reserves
>to cover them. A perfectly coordinated banking
system
>has no need whatsoever for reserves, exactly as if
it
>were one large monopoly bank with many branches. As
>the
banking system becomes increasingly coordinated,
>the need for
reserves is diminishing.
>
>* Simple withdrawals are similar.
Individual banks
>do not issue their own banknotes and coins, but
must
>purchase them from the central bank. If deposits
of
>banknotes and coins equal withdrawals of banknotes
and
>coins, there is no need for reserves to purchase them.
>
Regardless of the volume of transactions.
>
>
>--- John
Hermann <hermann@picknowl.com.au> wrote:
>
> >> By
Mr. McMaster: Q. So they pay three per cent and
> >> invite the
public to deposit by advertisements just
>to
> >> get a
smoke screen?-
> >>
> >> A. I should say
that.
> >
>
>That is not correct. Banks and other
depositories
>invite the public to transfer their deposits
from
>transaction accounts to interest-bearing accounts
>because
the latter generally have a reduced reserve
>requirement (in the U.S.
we find that term deposits
>have zero mandatory reserve requirement).
This action
>effectively frees up reserves, which may be used
by
>commercial banks in support of additional lending to
>the
public.
>
>In regard to this method of acquiring excess
reserves,
>the interest paid to depositors is generally a
lower
>cost to a bank than is the cost of borrowing the
same
>quantity of reserves from within the financial
system.
>This explains the incentive for banks to
offer
>interest-bearing deposits to the public.
>
>John
Hermann
>
>
>
>
>____________________________________________________________________________________
>Moody
friends. Drama queens. Your life? Nope! - their life, your story. Play Sims
Stories at Yahoo!
Games.
>http://sims.yahoo.com/
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