Debt Rattle December 23 2017

[Raúl Ilargi Meijer]

Ansel Adams Boulder Dam 1941   • Bitcoin Briefly Plunges As Low As $10,400, Down 47%, In Volatile Trading (CNBC) • 2017 Year In Review (David Col
[See the full post at: Debt Rattle December 23 2017]

[oxymoron]

My understanding is that banks create money on their balance sheets out of thin air – couldn’t supermarkets, retailers and the like end up getting govt. subsidies for their plastic bottles? It’s all bullshit.
If we could just get a massive stock market crash – then perhaps people would start using glass bottles and washing them at home for re-use and supporting a local dairy farmer etc.
A messy situation but by the standards of what we have now, maybe not so much

[oxymoron]

In Australia our major crypto site is Coinspot. Interestingly they are not able to accept deposits of Australian dollars for the last few days with the issue not resolvable till the new year. Seems the banks may be noticing the tiny little bank run or currency flight or whatever it is that has been accelerating as of late.
Coinspot vows to find another bank somewhere else……
Strange the relationship between fiat and crypto right now.

[V. Arnold]

oxymoron
My understanding is that banks create money on their balance sheets out of thin air.

That’s a bit over simplified; banks “create” money through loans, of funds they don’t have.
You go to the bank for a loan; say $10,000; the bank approves and deposits $10,000 into your account; the bank just “created” that money digitally; out of thin air, as you said.
The bank created the money out of debt; the worst of all possible actions; the world is powered by debt; how fucked up is that?

[zerosum]

I’m still reading.

https://www.peakprosperity.com/blog/113568/2017-year-review
2017 Year In Review
Markets fiddle while Rome burns
by David Collum
Friday, December 22, 2017, 3:15 PM

I’m discovering that there are many lalalands

[Chris M]

V. Arnold,

“The bank created the money out of debt; the worst of all possible actions; the world is powered by debt; how fucked up is that?”

Yes. That’s why I keep preaching that we should monetize production instead of debt. But who listens to me? You know?

[zerosum]

“… any system displaced from equilibrium tends to return to equilibrium….”

Question???
Does the fulcrum move to keep the system in equilibrium?
Does inflation move the fulcrum?

ful·crum
[ˈfo͝olkrəm, ˈfəlkrəm]

NOUN
the point on which a lever rests or is supported and on which it pivots.
a thing that plays a central or essential role in an activity, event, or situation:

[zerosum]

don’t forget part #2
https://www.peakprosperity.com/blog/113569/2017-year-review-part-2

There is a lot more that illustrate the may lalalands

[Professorlocknload]

@ Arnold and Oxy,,,,

Worth a read:
https://www.forbes.com/sites/johntamny/2012/07/29/ron-paul-fractional-reserve-banking-and-the-money-multiplier-myth/#37ea55a179b7

[V. Arnold]

zerosum
Thanks for that Collum link.
I read/skimed the very long article; an exhaustive read, IMO.
Summary: Sailing a lee shore with breakers ahead…

[V. Arnold]

Professorlocknload
Yep. Screwed to the right; screwed to the left, front, back, up, and down.
We here at the hermitage look at it all and keep our own council.
I quit using banks more than 25 years ago; went with a credit union.
In today’s world some form of financial institution is required, if only minimally.
I see a good credit union (not all are good) as the least bad choice…

[V. Arnold]

“Shortly, the public will be unable to reason or think for themselves. They’ll only be able to parrot the information they’ve been given on the previous night’s news.”

~Zbigniew Brzezinski

From Part II of Collum’s epic article.
We’re mostly there already.
Kudos to zerosum

[Author]

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