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Originally posted by LightinDarkness
Of course, the entire theory of this video rests on the claim that banks loan out money they do not really have, instead of limiting their loans to depositors money. This is quite simply not true, and it can be proven. The balance sheets for every single bank corporation are available, online, and can be read by anyone who has had an accounting course. The balance sheets are not only audited by outside investors looking for where to invest, but by the government and independent firms too. If you want to claim all of those people are in some sort of global conspiracy to lie about their balance sheets, how is it that companies like Worldcom and Enron came down?
The reality is banks only loan money out based on the money they have. Not all of this money comes from depositors - this is true - most of it comes from the earnings on investments banks make with other peoples money.
[edit on 10-12-2007 by LightinDarkness]
Originally posted by LightinDarkness
Of course, the entire theory of this video rests on the claim that banks loan out money they do not really have, instead of limiting their loans to depositors money. This is quite simply not true, and it can be proven. The balance sheets for every single bank corporation are available, online, and can be read by anyone who has had an accounting course. The balance sheets are not only audited by outside investors looking for where to invest, but by the government and independent firms too. If you want to claim all of those people are in some sort of global conspiracy to lie about their balance sheets, how is it that companies like Worldcom and Enron came down?
The reality is banks only loan money out based on the money they have. Not all of this money comes from depositors - this is true - most of it comes from the earnings on investments banks make with other peoples money.
The entire system of money is that we place VALUE in something. The truth is even if we went back to the "gold standard" we are doing nothing but putting our TRUST that "gold" has innate value. It doesn't actually have any value at all - we just put value on it. Is that a problem? No, as long as everyone else puts a value on gold or whatever it is that is being traded as money (just currency paper, right now). Where is the conspiracy?