[Squishes]

Originally Posted by elohiym

I'm not going to lecture; it wouldn't make sense to you that way.

How about you just provide a link? That is way better than being talked down to.

[chrysostom]

Originally Posted by elohiym

I understand it well. In fact, I am an expert on deposit expansion and bank loans, having researched the topic for many years. I am also a paralegal, so I understand the illegalities of what the banks are doing.

Certainly I can explain it you, and have done so on TOL numerous times. Isn't it time that some of you take an interest in the topic and investigate it for yourself? Should I spend my time explaining it again?

I would think that people would want to understand how banking works, especially when believing claims that our entire economy could have been collapsed in a matter of hours. Logically, that would not be possible unless the banks were up to no good.

Please let us know when you will have time to explain it to us again

[elohiym]

Originally Posted by Squishes

How about you just provide a link? That is way better than being talked down to.

There is no link.

You think I'm talking down to you?

Fine. Here's how it works.: Banks do not lend depositors' money. That's a myth. What actually happens is promissory notes are exchanged for credit. Bank assets and liabilities both increase. See the problem with that?

It's money changing, not lending. The banks risk nothing. The banks don't disclose the true terms of the contract. The banks do not pay taxes on expanded deposits, money they get for free. And that is why we are experiencing a global financial crisis.

Now, if you don't have a legal, accounting, or banking background, most, if not all, of that probably didn't make sense to you. So unless I "talk down" to you, or unless you engage me in dialog where we slowly and methodically break it down for you, then I see no point in continuing with the discussion.

[elohiym]

Originally Posted by chrysostom

Please let us know when you will have time to explain it to us again

I'll do it now if you answer my questions and engage me in a dialectical process of explaining. I'm not into lecturing.

[chrysostom]

Originally Posted by elohiym

I'll do it now if you answer my questions and engage me in a dialectical process of explaining. I'm not into lecturing.

let's go

[elohiym]

Originally Posted by chrysostom

let's go

If you go to a bank to borrow $100, what do you think occurs? Briefly explain to me how you think a loan works, and where the bank gets the money? Please tell me where you learned how it works, too.

[Squishes]

Originally Posted by elohiym

Here's how it works.: Banks do not lend depositors' money. That's a myth. What actually happens is promissory notes are exchanged for credit. Bank assets and liabilities both increase. See the problem with that?

Who is getting the promissory note? The bank?

[chrysostom]

Originally Posted by elohiym

If you go to a bank to borrow $100, what do you think occurs? Briefly explain to me how you think a loan works, and where the bank gets the money? Please tell me where you learned how it works, too.

The bank borrows the money from someone else at a lower rate

[elohiym]

Originally Posted by chrysostom

The bank borrows the money from someone else at a lower rate

Who do you think the bank borrows the money from?

And how could that even be possible if the money supply is increasing?

[elohiym]

Originally Posted by Squishes

Who is getting the promissory note? The bank?

Yes. They get it for free by deception.

Do you know what money is? If so, what is it? Is a promissory note money according to your understanding?

[chrysostom]

Originally Posted by elohiym

Who do you think the bank borrows the money from?

And how could that even be possible if the money supply is increasing?

The bank borrows from another bank or the Federal Reserve

An increasing money supply is not a problem when it comes to lending

[Squishes]

Originally Posted by elohiym

Yes. They get it for free by deception.

Do you know what money is? If so, what is it? Is a promissory note money according to your understanding?

I suppose it depends on what you mean. The dollar is a govt. bank receipt that everyone is ordered to accept as valuable.

But if you mean money in the abstract, I suppose it is an agreed upon object of value that has certain monetary properties such as longevity, easiness of transport, easy controvertibility, etc...

[elohiym]

Originally Posted by chrysostom

The bank borrows from another bank or the Federal Reserve

Where do you think the other bank or the Federal Reserve bank get the money?

By the way, the Federal Reserve Bank publication Modern Money Mechanics states exactly where the money comes from to make loans. It is not borrowed from another bank or the Fed, and it is not depositor's money being loaned out (the myth most people believe).

"Of course, [banks] do not pay out loans from the money they receive as deposits. What they do when they make loans is to accept promissory notes in exchange for credit to the borrower's transaction account. "

Modern Money Mechanics, page 6, second column, second paragraph.

As you will see, if you read the publication, the Fed claims that banks create money out of thin air. However, that is a lie, since no bank can increase a transaction account balance without first depositing money. In the case of loan, the money deposited is the "borrower's promise to pay.

Are you starting to see the scam yet?

Originally Posted by chrysostom

An increasing money supply is not a problem when it comes to lending

An increasing money supply in that case is evidence that they aren't lending at all. For example, if I have $100, and you want to borrow $100, the $100 I loan you doesn't increase the money supply.

Deposit expansion increases the money supply, but that is not actually lending. It's the redefinition of the word loan to enable theft of promissory notes. The notes provide the cash value for the entire transaction. The bank risks no money, and pays no taxes on the money they get for free.

It is obviously unfair, but it is also immoral and illegal.

[elohiym]

Originally Posted by Squishes

I suppose it depends on what you mean. The dollar is a govt. bank receipt that everyone is ordered to accept as valuable.

But if you mean money in the abstract, I suppose it is an agreed upon object of value that has certain monetary properties such as longevity, easiness of transport, easy controvertibility, etc...

You didn't answer whether you understood a promissory note to be money? Are you aware that a promissory note is money, that it is a cash equivalent and can be sold for cash? It is.

So when you give anyone a promissory note, you are giving him money. When you give the bank a promissory note, you giving the bank money. Do you agree?

[chrysostom]

elohiym

I don’t know where you are going with your questions

I would like to ask you a couple questions.

Did you know about this 550 billion run on money markets in Sept.?

Do you know why they are not talking about it?