ECONOMY: Is it really this dire?

[Nemesis 1]

Originally posted by: Yoxxy

Originally posted by: Nemesis 1
People assume loans have always carried interest . STOP . ChecK history . There was a period. It was GOOD. But people die and evil marches forward. Stop with the lies they hammered into your minds. Half of what they teach is distorted. More than half. Point is their was interest free banking and it worked.

A.) Islamic banking worked but only for the rich, there is a reason there was no middle class. You also shared proportionately in the profits, this is now known as venture capital.
B.) Banks used to charge money to deposit your money there because of the safety of having your money in the bank. They then loaned the money at a very low interest rate as the bank was taking interest to hold your deposits. If you really want to go back to that we can try but I am not sure it would work.
C.) You could combine Islamic banking and reserve banking to create an interest free lending society but this would of course cause the banks and suppliers of capital to be more concerned with their investment so suppliers of capital would take more leadership in the business as is the case with VC and Islamic/Arabian lending of the 1000BC-1000AD era.

Nemesis, I don't know who is teaching you, but they are spinning you a web of lies and leaving out some very key facts.

I was not talking about islamic banking. I am talking about western banking. Leaving the jews out of banking tho is laughable. But no I was talking western banking. Keep searching.

Your question to me about whos teaching is really ironic. Who taught YOU. Who would gain by teaching you distorted facts. You say you have been taught by teachers of high quality. I lol at that . You were taught by puppets. To teach an idea. an agenda. Whos most powerful men in world.? Bankers who has power to cover their deeds threw time with bribes? Bankers. You say you have learned from the best . Well we all learn from history or that which preceeded us. Whatever ya call it. If you except bits and piecies that fit your reality you reject trueth. The recently uncovered samerain tablets for instance.

They new 6 thousand years ago what were just figuring out. Than find out how it says we were created now things are becoming more real .

If you except the Science part of what the samarians wrote. Because it can't be denied. Than by what reasoning do you reject that which science can't or refuses to reveal as fact.

Ya see you were created to be a slave. According to samarians. Who built tower of bable. You will quikly reject this notion . of history. But that which you can't reject because science agrees to except. True logic would go with if part is true all is true. If half can be proved true how long befor the other half is excepted as fact.

I know this has nothing to do with crisis . But has everthing to do with learning . ALL the Facts. Not just distorted half trueths, As above you will except what the samarians wrote so long as science can't deny it. But the rest were there is no known proof lol you will happly reject and go about your life undawnted. Thats ape like thinking. I would want to know alot more about these slave makers and there relationship to us.

 

[Nemesis 1]

Originally posted by: Yoxxy

Originally posted by: Nemesis 1

Originally posted by: Yoxxy
Margin requirements on the nymex are $3999 for a contract of 100 troy ounces. 1:24 on the exchange where gold is priced.

I don't do com. They money boys can take a small player down on a whim if they choose to . Margines can kill ya. The big players have enough money to were they can munipulate the pricies. Gas Bubble housing bubble dot com bubble all engineered. When wealth is created . Somebody lost. Mostly in all this the only real money I can see missing is the 401K money . Thats what was stolen here. There calling it housing bubble . But it was infact theft of 401K money . If the stock market lost all this value. That means sellers were in play. How much was lost . Trillions. That was not LEVERAGED money . It was real money on like the bank phoney loans. that has zero colaterial behind it.

In the stock market . If the stock market loses a trillion dollars . Thats real dollars. not phoney boloney. So if 401k people lost trillions which none can deny. I want to know names of biggest gainers in markets this year. This money was stolen . This should be were the investigation starts . Its Know brainer. They can't hide its matter of public record WHO made the money in stock market collapse and you will find the guility.

Commodity margin is different from equity margin. They really should not have the same name. Commodities trading involves paying for a portion of the contract (called margin) if the contract goes down in price to the maintenance level you have the choice to exit the contract (sell it, or buy it) or put money back into the initial margin level, watch out those because those money boys will force you to pay all your money to them.

You don't get killed on futures you are thinking of equity margin where you use your purchases shares as collateral for another purchase. This turns problematic if you bet the wrong way as your losses are intensified.

Yep my dad once had a deal gone bad delivered to his house . Its should be illegael the middle man has zero right to a profit. These are bloodsuckers who only add cost to society without any useful contribution what so ever.

 

[Fern]

Originally posted by: Yoxxy
Interest is the risk associated with lending plain and simple.
-snip-

I'm not trying to be picky, and you seem educated in finance so I must ask:

I was taught (IIRC) interst rate is basically determined by this formula - 'risk + inflation + fundamental cost to borrow (approx 3%) = interest rate'.

Are they teaching something different these days?

TIA

Fern

 

[The-Noid]

Originally posted by: Fern

Originally posted by: Yoxxy
Interest is the risk associated with lending plain and simple.
-snip-

I'm not trying to be picky, and you seem educated in finance so I must ask:

I was taught (IIRC) interst rate is basically determined by this formula - 'risk + inflation + fundamental cost to borrow (approx 3%) = interest rate'.

Are they teaching something different these days?

TIA

Fern

Computer modeling and monte carlo simulations did away with that model, however most simulations run into a similar overall general statement except that it is a weighted average and not necessarily finite as in the example above.

In the current economic climate cost to borrow is 0, inflation is 1.5% (arguably future inflation is higher) so your whole loan is priced off risk which is why such a huge percentage of the equation over the last 5-7 years has been based off of credit rating agencies that were supposed to do the work for everyone else.

 

[Aegeon]

Originally posted by: Nemesis 1
I was not talking about islamic banking. I am talking about western banking. Leaving the jews out of banking tho is laughable. But no I was talking western banking. Keep searching.

The reality is in western banking there were not truly loans as we know them today before interest started getting charged. What you had is some wealthy individuals occasionally willing to loan money to friends basically to help them out, but if you didn't know such a person you were completely out of luck, so even if you had the best business idea in the world youu may not have been able to do anything with it if you could get the money for start up costs.

It simply flat out doesn't make sense to loan to someone from a business perspective without interest or something like the Islamic banking system to give you profits if the person is sucessful in business after getting the loan because you're taking the risk the person will default on the loan with no possibility of financial gain. For that matter, inflation can mean you effectively lose out loaning money even if the loan is payed back if you're not collecting any sort of interest.

 

[Nemesis 1]

Originally posted by: Yoxxy

Originally posted by: Fern

Originally posted by: Yoxxy
Interest is the risk associated with lending plain and simple.
-snip-

I'm not trying to be picky, and you seem educated in finance so I must ask:

I was taught (IIRC) interst rate is basically determined by this formula - 'risk + inflation + fundamental cost to borrow (approx 3%) = interest rate'.

Are they teaching something different these days?

TIA

Fern

Computer modeling and monte carlo simulations did away with that model, however most simulations run into a similar overall general statement except that it is a weighted average and not necessarily finite as in the example above.

In the current economic climate cost to borrow is 0, inflation is 1.5% (arguably future inflation is higher) so your whole loan is priced off risk which is why such a huge percentage of the equation over the last 5-7 years has been based off of credit rating agencies that were supposed to do the work for everyone else.

Inflation is the result of leveraging . Its were more debt exist than money supply .

Than you raise the money supply to cover the debt in a never ending cycle thats designed for only one person to get up with any chips left in game. Nathan was the biggest crook that ever lived. The biggest leach in the history of society . The worse parasite the human has ever engaged . So very perfect was his evil its the foundation of modern banking. If You have 1000 onces of gold thats all you will ever have . You don't mint the gold. You print money to equal its value. When value increases . increase money supply to = value. When value decreases remove money to equal gold value. Never leave this model ever.

There are other things that have value . there pricie will always equal money supply. As long as you own the Gold and keep books balanced you can do alot of trading with money . Without breaking budget . Money supply has to be backed by something other than a idea nathan rothschild thought up 300 years ago. It was a fraud than it still is today . But what do you say to he who owns all he oversees.

 

[The-Noid]

The money supply must grow with gold as well.
Increase in population will change your peg unless the gold supply is growing at the natural rate of population growth or technological growth. Asset prices can be denominated in whatever currency, soft commodity, hard commodity you choose to but in the end you still need to increase that asset, decrease the peg, or write IOU's. Otherwise you need to have a stagnant population and keep sucking money out of the via seizure of the underlying assets.

 

[The-Noid]

Inflation can also happen under the gold standard. Inflation is the result of more money chasing the same amount of goods whether your currency is pegged, fiat, or commodity based. If the underlying money supply stays constant and prices and supply of goods is set by the free market you will still have a situation where more units of money chase the same goods as you now have an increase in population.

LSAS shifts from LSAS(1) to LSAS(2) with an increase in supply similar to the baby boom of the 1940-50's. There is simply more people working around the world then ever and if you haven't changed the peg or found more gold your currency inflates without any leverage.

 

[BoberFett]

Yoxxy

I'm with you completely, fixing money supply on a limited commodity doesn't make sense. But does it make any more sense to allow it to be determined by people who ultimately stand to profit greatly from manipulation of said supply? It's the fox guarding the hen house.

Surely we have enough intelligent mathematicians and statisticians around that we can derive a purely formulaic approach to governing the money supply which can avoid the emotional affect of money.