It’s pretty clear to me “Terry” is a bull sock. Probably Shadow / K. No-one is that stupid. No-one can consistently lose every single debate every time. Such a person would not be capable of operating computer.
I put “Terry” on ignore about a year ago hoping this sock disappears. It’s a shame really, since there are some smart Bears on this forum. But Terry’s existence makes them all look stupid (brings down the average). Sometimes they even take his side – all the while the Bulls are just laughing at them
Don’t give him any oxygen. Let it die.
No he's not a sock, I've known him for years. I know, hard to believe anyone can be that dumb, but it's a wide world.
Take risks - if you win you will become wealthy, if you lose you will become wise
Ok makes sense in regards to the bank making the loan out of thin air then being backed up the central bank. Same thing I guess only created front to back instead. Your other point in regards to infinite debt doesn't make sense to me as the wages and all forms of currency in the system originated in the form of a loan? Yes? With interest yes? The only currency (money created without interest) that I know of is the Japanese yen and it's very experimental. I think the Japanese have created the highest debt to gdp ratio in the world?
Try not to confuse interest as different to any other type of loan.
Interest payable is simply another (mini) loan, with an equal credit on the other side (interest income, bank wages & profit).
As per my example, it is possible for transactions to occur while overall debt reduces. Not saying its common - but it is possible.
1. It's private banks who create most of the money in the system, not reserve banks.
2. Don't listen to anything Simon says, he has no idea.
EDIT - I shouldn't be so harsh on Simon - we would all love to hear him explain how money is created in the banking system - over to you Simon - strut your stuff.
LOL.......We have beeen through this too many times and Rufus suffers from amnesia
Lets cut straight to the Chase then:
Please tell me how magically all this money creation will prevent the Next GFC......
Your point is the world has a lot of debt. Well who does the world owe that money to? Seems like a fair question. Why can't you answer it.
everyone knows that debt is a figment of bears imagination... it is not real, so we should ignore it... until someone wakes us bulls up and asks us to explain how we are going to pay for it.
Did I rob you of the Chance to feel intelligent..........
You could probably roll a potato, but a piece of broccoli would be too much for you to handle.
Rastus2
5 Jan 2017, 06:25 PM
everyone knows that debt is a figment of bears imagination... it is not real, so we should ignore it... until someone wakes us bulls up and asks us to explain how we are going to pay for it.
Until then... PaRtY On !!
And yet here you are, with house prices still rising and no crash in sight.
Doesn't this trigger the slightest bit of doubt in you that maybe you haven't got it right?
Try not to confuse interest with any other type of loan.
Interest payable is simply another (mini) loan, with an equal credit on the other side (interest income, bank wages & profit).
As per my example, it is possible for transactions to occur while overall debt reduces. Not saying its common - but it is possible.
All money in existence was created with interest attached. Wages. Profit. what ever way you want to play it. When gdp grows that's only possible with more money in the system- so more loans and more debt and more debt with interest attached and the only way to pay this back is if the economy grows so you need to create more money and on we go. So what happens when people stop borrowing or even just slightly decline the system crumbles. This happened in 08 and the only way to stop it was to create more debt made possible with practically no interest. So people have taken on unimaginable amounts of debt. What do you think when people lose their appetite for more debt.
b_b
5 Jan 2017, 06:15 PM
Try not to confuse interest with any other type of loan.
Interest payable is simply another (mini) loan, with an equal credit on the other side (interest income, bank wages & profit).
As per my example, it is possible for transactions to occur while overall debt reduces. Not saying its common - but it is possible.
All money in existence was created with interest attached. Wages. Profit. what ever way you want to play it. When gdp grows that's only possible with more money in the system- so more loans and more debt and more debt with interest attached and the only way to pay this back is if the economy grows so you need to create more money and on we go. So what happens when people stop borrowing or even just slightly decline the system crumbles. This happened in 08 and the only way to stop it was to create more debt made possible with practically no interest. So people have taken on unimaginable amounts of debt. What do you think when people lose their appetite for more debt.
All money in existence was created with interest attached. Wages. Profit. what ever way you want to play it. When gdp grows that's only possible with more money in the system- so more loans and more debt and more debt with interest attached and the only way to pay this back is if the economy grows so you need to create more money and on we go. So what happens when people stop borrowing or even just slightly decline the system crumbles. This happened in 08 and the only way to stop it was to create more debt made possible with practically no interest. So people have taken on unimaginable amounts of debt. What do you think when people lose their appetite for more debt. All money in existence was created with interest attached. Wages. Profit. what ever way you want to play it. When gdp grows that's only possible with more money in the system- so more loans and more debt and more debt with interest attached and the only way to pay this back is if the economy grows so you need to create more money and on we go. So what happens when people stop borrowing or even just slightly decline the system crumbles. This happened in 08 and the only way to stop it was to create more debt made possible with practically no interest. So people have taken on unimaginable amounts of debt. What do you think when people lose their appetite for more debt.
As discussed above, it is possible for GDP to grow without ever increasing debt. It can also happen if a country runs a current account surplus.
However, for practice purposes that rarely happens in a country like Australia - foreigners like to save in $A forcing us to run a CAD.
Fortunately it is possible for the nom government sector to de-gear while still growing GDP. It simply requires the government to run a deficit (see my chart on Japan earlier in this thread as an example). And for a country with its its own non convertible currency (is Australia / Japan etc) the government is never financially constrained. US households have de-geared significantly since 2008, all the while GDP grew.
Rastus2
5 Jan 2017, 06:25 PM
everyone knows that debt is a figment of bears imagination... it is not real, so we should ignore it... until someone wakes us bulls up and asks us to explain how we are going to pay for it.
Until then... PaRtY On !!
The debt is real. So are the deposits on the other side. Yet no one ever seem to post that deposit to GDP ratio is at an all time high. I wonder why?
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