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2012 Coming Bank Collapses?


jeffontherock

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i Think what most forget is that germany has such good exports because all the broke places brought everything from them.

no cash to buy goods, no exports from germany, going to have a huge effect on germany the lose of all that crazy credit.

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http://www.bbc.co.uk...siness-16963116

The Bank of England has agreed to extend its quantitative easing (QE) programme by £50bn to give a further boost to the UK economy.

When completed, it will bring the total amount of QE stimulus to £325bn.

 

{quote} The Bank of England has agreed to give more free money to the banks and has made the decision today to reward them with another £50bn gift to boost their balance sheets.

When completed, it will have had the effect of making the average citizen a lot poorer, reducing the spending power of the pound in their pocket and forcing many more into abject poverty, whilst ensuring the top 1% can afford to upgrade their yachts. {quote}

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Not sure if this was worth starting a new forum post, so I'll just use this one.

 

In 2013 The Fed Bought 150% More Treasurys Than All Foreigners Combined. http://www.zerohedge.com/news/2014-02-19/2013-fed-bought-150-more-treasurys-all-foreigners-combined

 

Governments don't need to borrow money, they can create money of of thin air, (like banks do) and destroy the money as it is paid back from taxes INTEREST FREE.

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Haha. I just re-read the whole thread myself. I'm not afraid to put my hands up and say I f*cked up with my assessment.

 

Just got my timings wrong.... wink.png

 

And planet :) .

 

The central banks have steered us out of the recent 'situation' rather well.

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Governments don't need to borrow money, they can create money of of thin air, (like banks do) and destroy the money as it is paid back from taxes INTEREST FREE.

'Creating out of thin air' implies there is no cost. That isn't true, there is a consequence. Do you understand what it is?
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Governments don't need to borrow money, they can create money of of thin air, (like banks do) and destroy the money as it is paid back from taxes INTEREST FREE.

'Creating out of thin air' implies there is no cost. That isn't true, there is a consequence. Do you understand what it is?

Yes Slim you make a valid point, called inflation, that is why the money paid back from taxes must be destroyed, when a bank makes a loan they must have enough reserves to create this money out of thin air. Lets say its a £200,000.00 loan for a house, the bank is minus £200,000.00 on its books, when this £200,000.00 is paid back, the bank is at break even, all they keep is the interest. This is why there is no hyper inflation. When governments make a loan for a infrastructure project they do the same thing but do not charge any interest. One bank that does this is the state owned Bank of North Dakota .

 

How the Nations Only State-Owned Bank Became the Envy of Wall Street. http://www.motherjones.com/mojo/2009/03/how-nation%E2%80%99s-only-state-owned-bank-became-envy-wall-street

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Yes Slim you make a valid point, called inflation, that is why the money paid back from taxes must be destroyed, when a bank makes a loan they must have enough reserves to create this money out of thin air. Lets say its a £200,000.00 loan for a house, the bank is minus £200,000.00 on its books, when this £200,000.00 is paid back, the bank is at break even, all they keep is the interest. This is why there is no hyper inflation. When governments make a loan for a infrastructure project they do the same thing but do not charge any interest. One bank that does this is the state owned Bank of North Dakota .

Wow.
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