13 Responses to “Banking 7: Giving out loans without giving out gold”

1. Evulmeh says:

   September 15, 2009 at 3:36 pm

   No no, banks are …
   No no, banks are charging interest because of the risk, and as manager.

   If you fail to repay the loan, the bank will be in distress.
2. draggeddownthehole says:

   September 15, 2009 at 3:36 pm

   All I’m saying it …
   All I’m saying it that it’s utter nonsense to allow private banks in such a monetary system. They bring nothing to the table and collect all the interests. Even worse, they imply ownership of 96% of the money supply (debt presumably owed to them). Credit should be public and debt-free.
3. caveltor says:

   September 15, 2009 at 3:36 pm

   the bank is acting …
   the bank is acting as a conduit here. As every loan has a depositor and creditor, the “work” the bank does is to manage the risk and pay the depositor.
4. draggeddownthehole says:

   September 15, 2009 at 3:36 pm

   But taking a loan …
   But taking a loan is just giving a promisory note (with our signature) in exchange of promisory notes from the bank, aka bank notes. The bank doesn’t have to work to gain those notes. Why should you have to work to repay them? You’re just buying back your promise to pay (the et security) with other promises to pay (new bank notes) so the bank can discharge the liability on its book. Wether you repay or discharge the liability the bank contracted for your signature, it’s the same.
5. jackuy12345 says:

   September 15, 2009 at 3:36 pm

   wow u guys r just …
   wow u guys r just nerds that read from the book and never studied in real life
6. ananiasacts says:

   September 15, 2009 at 3:36 pm

   Yes, but his …
   Yes, but his solution that we should literally be using physical gold is simply impractical. People would barter with everything if that was the case. It’s the same thing as saying there should be no such thing as currency because to do otherwise is immoral.
7. FranceParisian says:

   September 15, 2009 at 3:36 pm

   In fairness to …
   In fairness to nemnaisa; his got a point and he is trying to critique the terrible side of the system. Remember a system is only effective if the rest of its parts are working properly.
8. HappyCowinCA says:

   September 15, 2009 at 3:36 pm

   You obviously have …
   You obviously have no thought what you are talking about and probably never went to college. Or if you did, you did not pay attention.
9. nemnaisa says:

   September 15, 2009 at 3:36 pm

   I know what …
   I know what Sal is trying to do: to justify the current fractional reserve banking system. The point why gold should be money is that it takes effort and human energy to extract gold from the ground hence it is precious and cannot be manipulated. While digital dollar can be manufactured by the bank anytime. The point is that banks are enjoying the spread by essentially doing nothing in the money creation process. Now, they try to keep all the profit while socializing the lost.
10. Cabanas751Dunhill says:

    September 15, 2009 at 3:36 pm

    Thanks to the …
    Thanks to the FAILOUT, they are not required to have anything in reserve
11. luke2468013579 says:

    September 15, 2009 at 3:36 pm

    Whats the maximum …
    Whats the maximum the bank can loan out in this vid, uming money is not redeposited and there is no sort of multipier? cheers
12. pongman says:

    September 15, 2009 at 3:36 pm

    Lol, I can see that …
    Lol, I can see that this is going to get juicier and juicier and how the banks basically neglected their requirements of keeping enough ets to cover the loans that were outstanding. I often wonder what the bank examiners were doing? Visions of “It’s a Wonderful Life” keep popping in my brain, and the massive run on the bank. Y’know I reckon Hollywood should make a movie about this. It’s a Wonderful Life 2008.
13. gamemaster014 says:

    September 15, 2009 at 3:36 pm

    your voice sounds …
    your voice sounds cool

Trackbacks/Pingbacks

Leave a Reply