I know a couple who paid off a credit card with another credit card, owed 27 grand for a car, then got a loan for a 20 grand boat & finally received another credit card with a 15 grand limit. When I put 20% deposit on the table for a block of land for 30grand the bank knocked me back. why don't I understand how this works ?

Bad editing on my part re the last post. Should have obviously read the teller "asked" as opposed to "didn't ask".

Too true Individual. The banks are getting as stupidly bureaucratic as government.

A mate of mine, recently retired, & living on the pension with his wife, applied for a credit card, after receiving an offer in the mail from his bank. He has never had a credit card, only a debit card.

It is 18 years since he last borrowed any money, & he cleared his home lone 8 years ago.

He has a lovely home on acreage, nice furniture, cars & equipment, with a total value between $850,000 & $1,000,000.

He was refused a credit card, but all the unemployed ferrals, with zero assets, around the place, have them.

I loved that film, "The goods must be crazy" but I wish the banks weren't.

Snake and Hasbeen while it is true that life was more frugal 40 yrs ago in that we did not have all the mod cons,families basically lived on one salary,could pay for the mortage but could not afford a new car.cars are far better and cheaper.My first house in 1981 cost me 4 times my annual salary.Today that same house costs 18 times my annual salary.Both Govts and the banking system have contrived to limit land,tax housing and out us in enormous debt.

As I've said before GDP + infaltionary money imput is a 6.5% increase each year.This is almost $80 billion which should belong to all Australians because we all contribute to GDP.It is the private banks that get to create this money and loan it back to us as debt.

My question to you also: Who does this inflationary money belong to and why?

Today's lesson, Arjay.

>>My question to you also: Who does this inflationary money belong to and why?<<

My question to you is:

How do we recognize this inflationary money when we see it, and who is using it?

Because if you can work this out, it will tell you to whom it belongs, and how they got it (i.e. "why" it belongs to them).

That's easy Pericles.The ABS and RBA each year puts out figures on inflation and GDP.All the Aust govt need do is to produce what rightfully and lawfully belongs to the people of Aust visa the RBA.GDP and inflation has averaged 6.5%,although with Labor borrowing from China we paid for our inflation with interest.A double whammy.

Now the banks won't be oput of business.They can still loan out people's money and make profits,borrow from OS banks or the RBA whoever has the cheapest money,but will not have the wild loaning ratios of banked $1.00 for $9.00 created in their computers and loaned out.The least productive of our institutions will then be in proportion to what they are really worth, ie just agents of the medium of exchange.Then real producers will shine and our economy will also.

Bank shares will take a bit of a hiding but we will be able to pay for infrastructure with no debt and have reduced taxation.Also our banks will not have to borrow OS thus improving the balance of payments deficit.Certain elite groups will be worse off but the majority of people will benefit.