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Old 02-08-2009, 02:43 PM
 
Location: where you sip the tea of the breasts of the spinsters of Utica
8,299 posts, read 12,926,282 times
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The really scary part of this video starts around the second minute, for those who want to cut to the chase:
YouTube - Rep. Kanjorski: $550 Billion Disappeared in "Electronic Run On the Banks"
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Old 02-08-2009, 08:18 PM
 
3,734 posts, read 4,863,435 times
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Thanks for the video, Woof.
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Old 02-09-2009, 05:33 AM
 
Location: Londonderry, NH
41,478 posts, read 54,509,625 times
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The money may have dissappeared but the wealth was never there.
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Old 02-09-2009, 10:17 AM
 
Location: where you sip the tea of the breasts of the spinsters of Utica
8,299 posts, read 12,926,282 times
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I think I should have pointed out that Kanjorski said that if the system hadn't been shut down, probably over 5 TRILLION dollars would have been transferred out, and that would have soon led to the collapse of the US economy - followed by the world economy.

A total collapse, not just a slow death like we have now.

His spiel really starts around 2:15 into the video, there's no need to suffer through the taxpayer lady rant. Apparently he's the only politician at this time telling the truth about what happened, and why the govt has been so incredibly frantic about these bailouts - I've certainly seen nothing like this amount of concern at the highest levels.

It's an interesting coincidence that the electronic run on the bank happened on September 11. 9/11.
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Old 02-09-2009, 01:22 PM
 
19,346 posts, read 17,068,507 times
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The elephant in the room is what is a run on the bank? Whats a run on a cheating husband? Its when his wife catches him with his girl friend and the running begins. A married man who commits to a wife has not over committed so he does not run. If I rent out a room to two people and they discover that I have rented it out twice I am going to have a problem. I have over committed the room. In every case it is considered fraud and deceit except for one and that is banking.

Fractional reserves and demand deposits are completely absurd. Do we really need money to "work for us"? Its just a medium of exchange. Real investments should do the work, not your demand deposit. Do we have a shortage of paper or computer entries? Allowing banks to "loan" money while keeping it on the books is simply allowing it to increase "the use" of money which is essentially inflation. However when people panic and demand their money the illusion disappears and so does the money. Yet now the solution is to have the Fed jam it in as if nothing happened. However something did happen. We grew the money supply. However it did not happen at the bailout but is simply creating reality from the illusion. Thats why nothing really seems to change because the money was already in fractional reserve existence. The theft was a continual process. There is simply no reason to reuse a fiat currency and its an artificially created roller coaster. There is no reason to allow people to think money is there and then create it on the spot when they find out its not.

If someone wants a demand deposit then it cannot be loaned out. Financing can be done by stock, bonds, time deposits all of which show the risk reward up front. Those who want banks to stow currency on demand cannot expect to not pay for this service. It also must actually represent money in the system not merely contingent on if someone else wants it. This would not tend to be as much a problem since money would tend to retain value since banks would not constantly create more of it.

However our solution now is to allow banks to expand the money with fractional reserves and when this is exposed they just create it on the spot with bailouts. So when they rent out a room twice they simply have you the tax payer give up your room when the two renters find out they have been duped. Let see Kanjorski address this.
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Old 02-10-2009, 05:24 AM
 
Location: Londonderry, NH
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If banks had to retain all the deposits (even for a storage fee) where would the money for loans come from?
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Old 02-10-2009, 07:11 AM
 
Location: Rockland County New York
2,984 posts, read 5,449,153 times
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We are dead as a nation. Our slow death began in the late 1980s and right now we are on life support. Ponzi schemes, job outsourcing and buying on credit with out the means of paying for our purchases has made us weak. The people want bread? Give the a blueray player and tell them they are wealthy. One lie is as good as another.
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