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Re: Bank of England want to end fractional banking!
Quite a list he has, almost everything thats wrong with the Anglo-saxion banking system. Strangle that the BOE should SUDDENLY decied to talk about this. Lets think about this, the "Anglo's" are finished their own greed has smashed their ponzi-banking scam.....so what to do?
War has not worked & once bankupt they will no long be able to play "The great game" to any great level. The world is walking off the job, $ getting trashed....with out it the Anglo's are heading for the 3RD World state. So, is this a gambit? Am guessing but i wonder if what we seeing here is the British plan.
The US plan is simple, trash $ then go back to a Gold standard, the US is said to have 8,000 tons of GOLD (Or Gold plated Tugsen if you follow the fination x-files).....this is fine as Plan "B" but it has a few draw backs. 1st it assumes the World would
jump at the idea of a Gold backed currancey.......many wouldn't welcome it.
2nd, the British don't have any F*cking GOLD!
So, while America could live with a Gold backed currancy the Limeys would get KILLED!............so is this their plan?
The BOE offer a new currancy, SDR's .....yes its Fiat paper, but unlike normal fiat paper we proimse on pain of death not to do fractional banking or ANY of the other ill shit/ponzi scams to rob you by debasing it value Mr China!
They thrown in banking reform as a sweaten the deal.
?
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Re: Bank of England want to end fractional banking!
At first glance, I think the motives for this speech of Mervyn King are more pedestrian.Originally posted by Mega View Post
"They" are setting up to bankrupt and consume the assets of most banks (the liabilities get socialized, of course.) JP Morgan always did abhor competition.Most folks are good; a few aren't.Comment
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Re: Bank of England want to end fractional banking!
Ahahaha. Yes, exactly. Mervyn King is just saying they're tired of Banks meddling in monetary policy. He wants to cut out the middle man.Comment
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Re: Bank of England want to end fractional banking!
If the UK ends fractional reserve banking, they could become just like the US, which already has done away with fractional reserve banking. Instead, the US has zero percent reserve requirements! There is good evidence that credit creation in the US comes from first from consumer demand, without any real reserves needed. Now that is free largess for banking!
More seriously, it looks like King is propsing the opposite, 100% reserves. Banking won't go this route without an enormous fight or some backdoor deal.
Irving Fischer proposed it in the depths of the Depression: 100% checking account reserves. That does mean, assuming the fiat debt system is retained, that all money essentially would be issued by the government and Fed. I doubt we ever go back to a pure gold non-debt standard as that assumes chaos.Comment
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Re: Bank of England want to end fractional banking!
I don't know how long exactly, but Canada has not required the banks to have reserve requirements for a while. I first found this out when a economics prof told me.
IOW, fractional reserve, with zero legally required reserves.
hmmmmm ....
http://en.wikipedia.org/wiki/Reserve_requirement
(I just found that page looking for a date when Canada moved to zero)
Australia, Canada, UK, Sweden ... ZERO reserve required.
dangComment
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Re: Bank of England want to end fractional banking!
It sound to me like a tacit admission that the ponzi finance is entering it last phase and that it can't be saved.We are all little cockroaches running around guessing when the FED will turn OFF the Lights.Comment
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Re: Bank of England want to end fractional banking!
Steve Keen and Basil Moore have talked about this very issue.Originally posted by Spartacus View PostComment
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Re: Bank of England want to end fractional banking!
They better end it, I cant imagine many banks trying to survive very little reserves %wise. The current system really only gives consumers a false sense of security that the government is making banks be responsible. 100% would be insane for any bank to have. Might as well go to a pawn shop if that would happen because I doubt many banks would be left or giving out much loans...Originally posted by Jay View PostComment
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