It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by rogerstigers
Originally posted by CookieMonster09
And stop with these nonsense stories about creating money out of nothing. At the local retail bank level, that's not what happens. If you want to talk about the Federal Reserve printing more money and inflating the money supply, that's a different topic. Now continue your discussion.
So are you saying that these quotes from pg1 in the OP:
“[W]hen a bank makes a loan, it simply adds to the borrower’s deposit account in the bank by the amount of the loan. The money is not taken from anyone else’s deposit; it was not previously paid in to the bank by anyone. It’s new money, created by the bank for the use of the borrower.”
– Robert B. Anderson, Treasury Secretary under Eisenhower, in an interview reported in the August 31, 1959 issue of U.S. News and World Report
“Do private banks issue money today? Yes. Although banks no longer have the right to issue bank notes, they can create money in the form of bank deposits when they lend money to businesses, or buy securities. . . . The important thing to remember is that when banks lend money they don’t necessarily take it from anyone else to lend. Thus they ‘create’ it.”
– Congressman Wright Patman, Money Facts (House Committee on Banking and Currency, 1964)
are lies or are they just outdated and somewhere along the lines our banks stopped this practice and turned honest?
Originally posted by CookieMonster09
First, everyone needs to make a huge differentiation between banks on Wall Street and banks on Main Street. There is a massive difference between Wall Street "investment" banks like Goldman Sachs, and your neighborhood retail bank.
Let's get that perfectly clear. Your local bank is rarely, if ever, engaged in derivatives trading, unless they are owned by a big Wall Street bank (like Chase).
Originally posted by detachedindividual
reply to post by questioningall
I don't think the derivatives market is the same as a bank lending money that doesn't exist. These are two separate things.
Either way, I'm certain that the banks creating money from nothing is a completely different beast from the derivatives market.
Originally posted by questioningall
China is defaulting on their derivatives contracts - they say it was done illegally and a scam from the banks?
China is pushing gold and silver to it's citizens to buy - the Chinese government are running commercials like it is soap on their T.V. constantly?
Hong Kong, Dubai, and Germany have called their gold in from storage from the U.K. and the U.S. - for the first time ever?
The U.S. State Dept. informed all of the Embassies to have local currencies on hand, that will last them a year by Sept. 30th?
The U.S. bond market has been missing China and other countries - they have stopped purchasing our debt? Besides how our bond buyers are now "indirect" buyers? ( in other words the Fed is printing the money as no tomorrow and buying the U.S. debt themselves through "friends")
Bankers that created toxic assets like subprime-mortgage derivates should be paid in those assets instead of cash, which will bring about a more transparent and less reckless Wall Street, Vince Farrell, chief investment officer at Soleil Securities, said Monday.
"The investment bankers who came up with all this toxic stuff should get paid with what they created," Farrell told "Worldwide Exchange." "Why don't you have them get some of this paper?"
"If your own self interest is on the line, you might be a little more careful of what you trade," Farrel said.