Re: [SOCIAL CREDIT] reply to Vic2

[Victor Bridger]

John, Good to see you on line. I have not heard from you sinces I dropped out from ERAnet. Did you ever obtain the information re "on-lending" from the Reserve Bank or APRA ot anyone else? Remember, I said I would flap my arms and fly to the moon if you did.   The posting below, because of the Subject line above may give the impression that it is my writing which it is not.   I have no more comments to make re bank lending etc. because it is going the same way as the discussion on the ERANet. I simply state that the banks do create the major portion of what is regarded as the nation's money supply and call it their own. They do create it out of nothing on the fractional reserve system. They do charge interest which can only be obtained for repayment by receiving "money" from someone else which was originally borrowed by someone plus interest. It matters not whether the money was borrowed in Australia or anywhere else in the world where they operate on a fractional reserve system. Even export earnings are received from somewhere where there has been money "borrowed " into existence. All that export earnings on a "favourable balance" means that it has increased the "reserves" of the bank concerned allows that bank to lend (create) even more based on whatever reserve ratio is applicable. Regards, Vic Bridger ----- Original Message ----- From: [EMAIL PROTECTED] To: Social Credit Sent: Monday, June 23, 2003 11:50 PM Subject: RE: [SOCIAL CREDIT] reply to Vic2 At 10:12 AM 22/06/2003 -0700, you wrote: Let's say the loan is for $100,000 at 5% payable yearly over ten years.  At the end of the first year you would owe one tenth of the principal plus five percent of the principal:  $10,000 principal plus $5,000 interest.  Only if the $5,000 is not paid does the debt compound because of interest. At the end of the second year you would pay $10,000 in principal plus five percent of $90,000.  At the end of the third year you would pay $10,000 plus five percent of $80,000, etc. -- >>>OK, so in this example the bank credits its own account in the amount of $27,500 up front. Correct? <<< It is merely an example.  In this example the banker credits nothing to his account up front.  At the end of the first year the banker receives $5000 interest which he then credits to his personal account. The larger point is that, in the economy as a whole, there are many overlapping loans because it is a continuous dynamic process.  It works out exactly the same if interest on individual loans is credited to the banker up front, during the amortization period, or at the end.  It works out to a simple rate of interest that the financial sector charges the rest of the economy for financial services rendered. I thought we were talking about discounted loans. You have now changed the conversation topic. In the original discussion, it seemed to me that you were making the case that banks (or the banking system, if you like) create the interest that they charge their borrowers. I haven't heard this one before. Can you cite one or more references which would help to put your assertion on a somewhat firmer basis than mere hearsay?    JH ==^^=============================================================== This email was sent to: [EMAIL PROTECTED] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html ==^^===============================================================