View Full Version : Is this true? For you Bank Managers out there.

8th May 2012, 13:32
Please watch all 48 minutes and then comment on the veracity of this. Is this really what we're doing?

Money As Debt (http://video.google.co.uk/videoplay?docid=-2550156453790090544#)

8th May 2012, 13:35
Please watch all 48 minutesThat's where you lost me.

8th May 2012, 13:38
Does this work?
Money As Debt (http://video.google.co.uk/videoplay?docid=-2550156453790090544#)

8th May 2012, 14:03
The first two minutes of unspoken powerpoint says it all

Great for bedtime watching if you can't sleep

8th May 2012, 15:26
Not 'we', but 'them' and the first time you hear this it's a shock to the system, all rational misconceptions gone :uhoh: A closed system of hundreds of years with a very vested interest controlling it, yet propagated by 'our' docility and ignorance. Enough of all that, what's on TV tonight ?


8th May 2012, 16:02
According to the Theory of Money (as taught by LSE many years ago when I studied Economics) money is a store of wealth and a medium of exchange. It is a long, long time since that was absolutely true.

It was Harold Macmillan who referred to the Bankers as "Banksters" back in 1956 when he was Chancellor. In his memoirs he relates how the Governor of the Bank of England and the Financial Industry fought him tooth and nail behind the scenes when he imposed strict liquidity ratios upon them to control the supply of money. Unfortunately Mrs Thatcher started the rot and Gormless Gordon tipped us over the edge by removing controls altogether. :(

8th May 2012, 16:31
The first two minutes of unspoken powerpoint says it all

Great for bedtime watching if you can't sleepYou have to force yourself to watch the whole thing .... then it is very enlightening! If true. In fact, it's utterly amazing ... the most amazing thing to be told this year I'd bet. If true.

8th May 2012, 19:05
It gives a reasonable yet simplistic view of how the money supply works, and I even think the 4 questions posed are good questions; the solution to the problem on the other hand, has a lot to be desired.

I'd also add it is not unreasonable for banks to make a profit; any business should, otherwise there is no incentive. Making a profit in and of itself is not greed.

Switching from the current system, to any other system, is practically impossible, based on the complexity and lack of understanding of the current system. You have to know where you are starting before you can begin your journey.

There are a lot of activities going on right now to curtail the money supply being created and made available to banks, with increases in risk capital required for different business activities, improved transparency in reporting (something not clear even within a bank), and restrictions on what business activities a bank can engage in, and what portion of a bank's business it can represent.

This is a big reason for the slow down seen in all the major banks right now, be it their share price, earnings forecasts, hiring or even rate of transactions undertaken. It is forcing banks to slow down, clean house, cut costs and improve their overall businesses.

It is by no means perfect, with positive and negative side affects, and no doubt will only be a reprieve for a short period until our overconfidence kicks back in and we rush off to the next boom and bust cycle.

I don't see any magic bullet that is enough to force any significant change, nor the appetite of society at large to deal with the effects the transition will cause, or cost them.