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ranbotrader
Member since May 2012
188 commentaries
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has posted a comment on the article :
How Money Disappears in a Fractional-Reserve Money System
- Frank Shostak -
" Tom exercises his demand for money by holding some of his money in his pocket and the $1,000 he keeps in the Bank X demand deposit. By placing $1,000 in the demand deposit he maintains total claim on the $1,000." What's "demand deposit"? This sounds like a whole lot of economist gobbledigook. Better to write a piece like this so that it makes sense.
Question: you claim that money created in fractional reserve lending, when paid back disappears. WHilst I understand how fractional lending works I would have thought that because the money came off the printing presses and was handed to banks then it would be physically there for, and only disappear if/when the banks paid it back to the Fed.
Maybe I do not have enough understanding of economics. It does sound like one gigantic shell game to me where all parties lie and deceive to make a case.
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3067 days ago
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Most experts are of the view that the massive monetary pumping by the US central bank during the 2008 financial crisis saved the US and the world from another Great Depression. On this the Federal Reserve Chairman at the time Ben Bernanke is considered the man that saved the world. Bernanke in turn attributes his actions to the writings of Professor Milton Friedman who blamed the Federal Reserve for causing the Great Depression of 1930s by allowing the money supply to plunge by over 30 percent.C...
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chers Vladi,il est lor, oui, effectivement, et alors ? un fonctionnaire crée de la richesse ? creuser des trous crée de la richesse ? si nous arrêtions, pour voir, de payer nos impôts, vos 55, fonctionnaires compris, font quoi fin du mois ? merci d'expl
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ferzi
- 20/04/2013 à 20:03 GMT
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