I am very interested in the debate between Arjay and Yabby here and I have to admit I probably am as ignorant of these matters as OUG or Hasbeen although I worked in a bank in Australia and London and saw the big profits we made just on the difference between selling and buying currency, back in the days when wool sold for " a pound -a pound" and 2% copped by the bank on each letter of credit transaction.I worked in Real Estate with Keith Campbell whose report to the Government delegulated the Banks.It proves to me that the bloke in the street knows virtually nothing about how Banks operate.If you don't want them to lend your money to others you can put it in a Safe Deposit Box, but if the bank is robbed as the one I worked in,- was in London, you may lose the lot! Being mortal, most of the population would say "It's only Money!"

thanks for the compliment diplowman...lol..i dont care what bankers or former bankers think of me or my posts...lol...who can believe them ..their just born liers

i use links to say things i cant..[read the links]...rebut the links[play the links..[ball not the man]messenger just passing on info

anyhow

if we recall kevin...gave many..money to spend...its worth an ignorant like me pointing out..that for every dollar we didnt spend...has increased ..via fractional reserve..leverage...the banks now have more credit/money to lend..thanks to the poor

not that they need..fractional reserve..to create money...but just thought i would make the point..that our banked funds..provided more fractions...but that we dont get the advantage..nor extra credit..our money created...

nor do our pennies get any intrest..[aint it grand how bankers get the lot...[and we just get extra bankfees..

.any idiot can see banks dont care about us..[the suckers]...lets just audit the fed...and while were at it tell krudd to tell the banks to refund all our bankfees..

Yabby and others - For your information - a correction:
"But banks have the right to lend you that money, so for all intensive
purposes," Now, I don't comment on the rights of the Banks, because they have all the rights. Even to take your deposit, and say it is no longer there, for whatever reason. What I comment upon is the last phrase:
It is "for all intents and purposes" , not "for all intensive purposes".
So much of the English language is being destroyed these days, that I feel the need to inform everyone, so this type of error is not purpetuated.
While I am at it: You media types who say 'Those people that', it is 'Those people who', and 'There's six people' should be 'There are six people', or 'There're six people'.
Oh, and about the banks - perhaps we should follow the trail, from the sub-prime mortgages, and see where all that money went. I note on a Colonial State advert, they are saying it has been 'lost'.
Well that is not entirely true. There are a few different types of money which circulate in the economy. When a part of that economy removes a large amount - bam! There is a recession. A large amount has been removed via the thimbles and pea trick. How about we look at getting it back, as it was not legitimately transferred in the first place. It has not disappeared. It is currently being used to line the nests of criminals going by the name of financiers. As it filters back into the economy - bam! We are back on track.

Oh, look, I am not perfect: I did correct it, from 'purpetuated' to 'perpetuated'. Let's hope I have not PERPETUATED the problem. Come on, smile! Life is too short to do otherwise.

Sometimes when I correct an error in the preview, it does not seem to come through in the final post. Probably something I need to do more carefully. By the way, great discussion all. Love this site.

gabby...from your link
http://en.wikipedia.org/wiki/Federal_Reserve_System

<<the fed claims to hold assets to the value of..2,198,613,[MILLION][whats that about two trillion?.>>

..but look at the value of gold on the asset sheet...

[im presuming this is it..<<Gold certificate account 11,037 [MILLION]>>..is that 11 billion...

now look at their clever accounting trick

from the same..your..fed reserve link gabby

<<The Fed has over $11 billion in gold which is a holdover from the days the government used to back US Notes and Federal Reserve Notes with gold.

The value reported here is based on a statutory valuation of $42 2/9 per fine troy ounce.

As of March 2009, the market value of that gold is around $247.8 billion>>...its real value is 247 BILLION..[its no doudt a very conservative number]...who really knows [right]

but its on the books as 11 billion..[neat trick eh]...but by their own fact sheet worth 10 fold that its declared

ITS TIME TO AUDIT THE FED TO FIND OUT WHAT OTHER CLEVER ACCOUNTING...its stealing..by playing games with the peoples assets

but lets take it further...11 billion...at...42 dollars an ounce...but an ounce is near 1000 per oz...or 22 times under value...

they are so clever these money lender's...noting they dont mention the silver they stole as well..when our coin went from real silver to nickle coin-age...what value these virtual numbers when the fed holds the real gold...why dont the treasury sell it?

i recall you quoted a dividend...you claim the fed paid to the govt in a recent post..[COULD YOU PLEASE RESTATE..THAT FIGURE...

id like to do some more math on the numbers...sort of do my own audit..so to speak...seeing as how govt members..in the pay of the moneylenders..wont ever be passing the audit the fed bill...smells like treason to me