DiverCity

Turning Japanese: The Audacity of Reality (Part 3 of 3)

Alright -- had to do real work, unlike the Turtle and BS Boy seem ever to do as attested by their non-stop apologia for fiat fraud land on nearly every cotton picken' article on SA touching on these subjects (and Lord knows how many others).

To counter your absurd hypothetical, BS Boy, the banksters need to know that there's a reasonable likelihood they'll get paid back, and the regulators kind of want to see certain criteria padding a loan file that makes said result at least somewhat likely in the sweet bye and bye. Moreover, there is not an inexhaustable supply of borrowers -- even borrowers who don't meet lending criteria. Man, this is so easy. You guys with your academic theories just can't see.

Turtle -- and I think you know this but must want to intentionally obfuscate -- you posit only one side of the fractional reserve banking edifice (writ, house of cards) and attempt to buttress your position by playing semantical games. Please recall that for the banksters, loans are assets and demand deposits are liabilities. Now, if Bank A gets a deposit from me of $1,000 (because I work), and the reserve requirement is 10%, it most certainly can set aside $100 and lend $900, thereby complying with its mandated reserve requirements. Consequently, it has $100 of my initial deposit and has loaned out $900 of same. Remember, a loan is an asset and a demand deposit is a liability. Pray tell, Turtle, where lieth the error in my ways?

Turning Japanese: The Audacity of Reality (Part 3 of 3)

BS Detector, you write like the fool of an academician that you are. Your arguments have no real world application and you fail to see the huge zit on the end of your nose that has just popped. I don't know why the author bothers to respond to your inanity and lack of real world precience.

31 October, your comments are right on. Those jobs are not coming back. The fool of an academician that BS Boy is cannot understand the simple truism that we just can't all sell each other hamburgers and maintain the lifestyle we've had for the last 30 years. Of course, he probably doesn't even care as he enjoys his tenured position and will continue to get paid until the proles rise up and take it from him by force.

Speaking of proles, the individual who has the issue with his CAPS LOCK expresses legitimate, albeit somewhat misplaced frustrations about the loss of manufacturing jobs. The sad fact is, however, that the car companies, for example, are not competitive, their product is substandard, and they must face the cleansing fire of a bankruptcy to come be able to survive -- and survive I hope they do.

Myrtle the Turtle, surely you jest?? You don't think banks lend more than deposits on hand? And you purport to speak authoritatively about the fraud that is fractional reserve banking?

Folks, we are regressing to the mean of a lower standard -- a much lower standard -- of living in the West relative to the rest of the world. Or did you surmise that through the application of an academic theory that we could perpetuate the frauds of limitless credit and fiat currency in perpetuity? Do they have an academic theory for that, BS Boy?

Orwellian Finance: Is 1984 Happening in 2009?

Thanks Mr. Quinn for another fine and eminently correct opinion piece. I have NO HOPE that the majority will wake up, but perhaps it won't take a majority. Maybe a minority can effect the kind of change we really need, which certainly won't come about through the mindless and stupid feel-goodisms mouthed by all members of the Party.

America's Fiscal Crisis: Tough Decisions Needed Now

It surely shows how far we've gone when idiots like CLH call true conservatism "leftism." Bush is a liberal in most ways that count. Open your eyes you stupid neocons.

The Fed's Coming Rate Hikes

It's not the companies that need to borrow so much, is it? Isn't it rather the banks that need substantially negative real rates in order to staunch their bleeding? That's my take anyway. Hence, I don't see the Fed raising rates anytime soon, lest the teetering banks (investment, money center, commercial, community and otherwise) take a big, big hit.