Liberal Forum

Beekeeper » 02 Jun 2023, 7:17 am » wrote: ↑

02 Jun 2023, 7:17 am

It's FACTUALLY CORRECT, ****!!

 

...no it's not, you stoooooooooooopid f@ck... banks create deposits when they make loans, you stooooooooooopid f@ck...[and monetary ignoramus]   

peepee » 02 Jun 2023, 7:28 am » wrote: ↑

02 Jun 2023, 7:28 am

 

...no it's not, you stoooooooooooopid f@ck... banks create deposits when they make loans, you stooooooooooopid f@ck...[and monetary ignoramus]

Is a LOAN an ASSET or a LIABILITY to the BANK, ****???

 

peepee » 02 Jun 2023, 7:28 am » wrote: ↑

02 Jun 2023, 7:28 am

 

...no it's not, you stoooooooooooopid f@ck... banks create deposits when they make loans, you stooooooooooopid f@ck...[and monetary ignoramus]

Banks do in fact create deposits when they make loans.

So, here is how it really works because PeePee-the-**** doesn't have the education, understanding or language skills to actually explain this.  When a bank makes a loan, it records it on the balance sheet as an asset, because it generates interest income for the bank.  But, what actually happens to the loan proceeds?  No cash exchanges hands.  One thing the Bank can do is issue the borrower a cashier’s check for the loan amount (or part of the loan amount).  Or, the Bank will allow the loan proceeds to be used to pay for something like a house.  Either way, the Borrower does one of two things - he deposits this check in his regular checking account with the Bank, or it gets disbursed as deposits to various other banks to pay for something like a house.  Regardless, all of the loan disbursement will wind up as a deposit in a bank somewhere. Each bank that receives these deposits is only required to hold 10% on hand per banking regulations, but can lend out the other 90%.
 
 

Skans » 02 Jun 2023, 7:52 am » wrote: ↑

02 Jun 2023, 7:52 am

Banks do in fact create deposits when they make loans.

So, here is how it really works because PeePee-the-**** doesn't have the education, understanding or language skills to actually explain this.  When a bank makes a loan, it records it on the balance sheet as an asset, because it generates interest income for the bank.  But, what actually happens to the loan proceeds?  No cash exchanges hands.  One thing the Bank can do is issue the borrower a cashier’s check for the loan amount (or part of the loan amount).  Or, the Bank will allow the loan proceeds to be used to pay for something like a house.  Either way, the Borrower does one of two things - he deposits this check in his regular checking account with the Bank, or it gets disbursed as deposits to various other banks to pay for something like a house.  Regardless, all of the loan disbursement will wind up as a deposit in a bank somewhere. Each bank that receives these deposits is only required to hold 10% on hand per banking regulations, but can lend out the other 90%.

No, the bank did NOT "create" anything EXCEPT the loan. They may have MADE A DEPOSIT in a LIABILITY ACCOUNT of someone or something, but they CREATED A LOAN which is an ASSET TO THE BANK The DEPOSIT becomes a LIABILITY to have that much cash available to use as the DEPOSIT ACCOUNT stipulates it's to be used for- house purchase, car purchase, line of credit, whatever.

There are DISTINCT YET IMPORTANT differences in the words be used here.

Beekeeper » 02 Jun 2023, 8:01 am » wrote: ↑

02 Jun 2023, 8:01 am

No, the bank did NOT "create" anything EXCEPT the loan. They may have MADE A DEPOSIT in a LIABILITY ACCOUNT of someone or something, but they CREATED A LOAN which is an ASSET TO THE BANK The DEPOSIT becomes a LIABILITY to have that much cash available to use as the DEPOSIT ACCOUNT stipulates it's to be used for- house purchase, car purchase, line of credit, whatever.

There are DISTINCT YET IMPORTANT differences in the words be used here.

All we are talking about here are the creation of deposits.  Loans certainly do create deposits.  And, it is through banks making loans that the Fed uses banks to increase the money supply.  Proceeds from loans are converted into deposits.  And, even though deposits are a liability on the banks books, because of federal regulations, banks don't need to keep more than 10% of those deposits on hand.

Now, what part of what I've stated above do you think is wrong?
 

Skans » 02 Jun 2023, 8:13 am » wrote: ↑

02 Jun 2023, 8:13 am

All we are talking about here are the creation of deposits.  Loans certainly do create deposits.  And, it is through banks making loans that the Fed uses banks to increase the money supply.  Proceeds from loans are converted into deposits.  And, even though deposits are a liability on the banks books, because of federal regulations, banks don't need to keep more than 10% of those deposits on hand.

Now, what part of what I've stated above do you think is wrong?

Banks still aren't "creating deposits", but creating the FUNDS USED to make a deposit. A very distinct difference. A DEPOSITOR makes a deposit from any source and THAT is how a DEPOSITOR ACCOUNT is created. Whether is comes from a loan or a transaction like a paycheck or sale of goods and services, its still NOT a bank creating the deposit, but the FUNDS FROM THE DEPOSITOR (client of the bank)  that creates the deposit.

Beekeeper » 02 Jun 2023, 9:01 am » wrote: ↑

02 Jun 2023, 9:01 am

Banks still aren't "creating deposits", but creating the FUNDS USED to make a deposit. A very distinct difference. A DEPOSITOR makes a deposit from any source and THAT is how a DEPOSITOR ACCOUNT is created. Whether is comes from a loan or a transaction like a paycheck or sale of goods and services, its still NOT a bank creating the deposit, but the FUNDS FROM THE DEPOSITOR (client of the bank)  that creates the deposit.

I think at this point we are splitting hairs.  Banks get the money they use to make loans from the Fed.  The funds from those loans will be deposited into various bank accounts.  And, banks can (generally, exceptions may apply) deploy/invest 90% of the money that they have received in deposits.   Simply stated, that's how it works.

So, banks that make loans do help to create deposits.  With every loan, there will be more money on deposit in bank accounts, and more money available for investing.
 
 

Skans » 02 Jun 2023, 9:32 am » wrote: ↑

02 Jun 2023, 9:32 am

I think at this point we are splitting hairs.  Banks get the money they use to make loans from the Fed.  The funds from those loans will be deposited into various bank accounts.  And, banks can (generally, exceptions may apply) deploy/invest 90% of the money that they have received in deposits.   Simply stated, that's how it works.

So, banks that make loans do help to create deposits.  With every loan, there will be more money on deposit in bank accounts, and more money available for investing.

NOW you have the words CORRECT!!

Banks don't "create" deposits, but "create" the funds used to MAKE deposits!! Semantics are important when making a case in point.

Beekeeper » 02 Jun 2023, 10:12 am » wrote: ↑

02 Jun 2023, 10:12 am

NOW you have the words CORRECT!!

Banks don't "create" deposits, but "create" the funds used to MAKE deposits!! Semantics are important when making a case in point.

     

...private commercial banks/banksters create the money they 'loan' out of thin air, you stooooooooopid f@ck [and monetary ignoramus]... they decide who gets any 'loan$',  at what 'price' [interest rate] and the other terms of the loan...

...this 'privilege' enthrone$ them... today's 'golden rule'.... 'they who control the federal reserve notes ['the gold']  makes the rules...

...maybe you two stooooooooopid puppet-sucking republic#nts [and monetary ignoramuses] might think about this the next time you get to working your orange c@ck suckers about the republic#nt/democ#nt $hit-puppets/$hit puppetry!...     

https://positivemoney.org/how-money-wor ... ate-money/

“In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.”

“Commercial [i.e. high-street] banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created. For this reason, some economists have referred to bank deposits as ‘fountain pen money’, created at the stroke of bankers’ pens when they approve loans.(1)” ­[our addition in brackets] (Bank of England, Money Creation in the Modern Economy)

Skans » 02 Jun 2023, 7:52 am » wrote: ↑

02 Jun 2023, 7:52 am

I'm a puppet-sucking **** [and monetary ignoramus] who doesn't have the education, understanding or language skills to actually explain this. 

Beekeeper » 01 Jun 2023, 6:26 am » wrote: ↑

01 Jun 2023, 6:26 am

Banks don't "create deposits" idiot. CUSTOMERS OF THE BANKS make DEPOSITS, ARSEWIPE!! There is NOTHING fraudulent about it either

           
 
[apparently this ^^^^ naive, puppet-sucking @sshole [and monetary ignoramus] believes banks only lend out money deposited with them!]         

peepee » 03 Jun 2023, 8:25 am » wrote: ↑

03 Jun 2023, 8:25 am

           
 
[apparently this ^^^^ naive, puppet-sucking @sshole [and monetary ignoramus] believes banks only lend out money deposited with them!]       

No, ****, I know how fractional banking systems actually work. Something YOU seem to talk a lot about, but have ZERO FACTUAL INFORMATION you can talk about.

Beekeeper » 03 Jun 2023, 10:29 am » wrote: ↑

03 Jun 2023, 10:29 am

No, ****, I know how fractional banking systems actually work. Something YOU seem to talk a lot about, but have ZERO FACTUAL INFORMATION you can talk about.

       

...then how come you wrote this, monetary ignoramus!!: 

"Banks don't "create deposits" idiot."   

[btw, do you EVER offer any evidence to support the retarded claims you    make, monetary ignoramus?!]        

 

...then how come you wrote this, monetary ignoramus!!: 

"Banks don't "create deposits" idiot."   

[btw, do you EVER offer any evidence to support the retarded claims you    make, monetary ignoramus?!]  

Well @peepee   PISSBOY, banks DO NOT "create deposits", they create the FUNDS TO MAKE A DEPOSIT. Semantics are important, ****!! Oh which you have NO CLUE and that in turn makes you an EFFING IDIOT that is only smart enough to tote a PISS BUCKET!!    

           
 

Beekeeper » 03 Jun 2023, 2:04 pm » wrote: ↑

03 Jun 2023, 2:04 pm

Well @peepee   PISSBOY, banks DO NOT "create deposits"

   

...here's ANOTHER source that exposes you as a monetary ignoramus....((((((CAN YOU PROVIDE ANY EVIDENCE THAT BOLSTERS YOUR RETARDED CLAIMS, @SSHOLE?))))) [and monetary ignoramus] 

         

http://www2.harpercollege.edu/mhealy/ec ... es/ch13-17 

The Money Creation Process

There are two interesting things that we will learn in this chapter. FIRST, banks create money when doing their normal business of accepting deposits and making loans. When banks make loans they create money. remember from chapter 12 that money (M1) is currency (coins and bills) AND checkable deposits. When I got a loan for my boat the bank called me up and said that they deposited the loan in my checking account. This new deposit is NEW MONEY created by the bank. they just turned on their computer, logged into my account, and changed the amount that I had. They created money. The Federal Reserve has tool that it can use to control how much money banks create.

peepee » 03 Jun 2023, 2:26 pm » wrote: ↑

03 Jun 2023, 2:26 pm

   

...here's ANOTHER source that exposes you as a monetary ignoramus....((((((CAN YOU PROVIDE ANY EVIDENCE THAT BOLSTERS YOUR RETARDED CLAIMS, @SSHOLE?))))) [and monetary ignoramus] 

         

http://www2.harpercollege.edu/mhealy/ec ... es/ch13-17 

The Money Creation Process

There are two interesting things that we will learn in this chapter. FIRST, banks create money when doing their normal business of accepting deposits and making loans. When banks make loans they create money. remember from chapter 12 that money (M1) is currency (coins and bills) AND checkable deposits. When I got a loan for my boat the bank called me up and said that they deposited the loan in my checking account. This new deposit is NEW MONEY created by the bank. they just turned on their computer, logged into my account, and changed the amount that I had. They created money. The Federal Reserve has tool that it can use to control how much money banks create.

Your OWN WORDS PROVE that the MONEY was created AND DEPOSITED INTO THE DEPOSITORS ACCOUNT!!! The bank did not "create a deposit", it CREATED A LOAN THAT "created" THE MONEY USED TO MAKE A DEPOSIT, ****!! YOUR OWN WORDS!!!

They can't "create a deposit" simply by doing so. SOMETHING had to be a SOURCE FOR THE FUNDS, and in your example ****, it was a LOAN that "created money" to MAKE A DEPOSIT!! NOW GO **** YOURSELF, ASSHOLE!!

             

Beekeeper » 03 Jun 2023, 2:33 pm » wrote: ↑

03 Jun 2023, 2:33 pm

The bank did not "create a deposit", it CREATED A LOAN THAT "created" THE MONEY USED TO MAKE A DEPOSIT, ****!! YOUR OWN WORDS!!!

         

...'loans' are things... 'things' don't/can't 'create money'...'banksters'/people create money, you stooooooooooopid motherf@cker [and monetary ignoramus]  ...and they do so by tapping some newly-created numbers into a deposit account of 'the borrower'...

...stick to tranny bathroom policy and $hit puppet$/$hit puppetry, you bloviating @sshole.. [and monetary ignoramus]      

[STILL NO EVIDENCE TO BOLSTER ANY OF YOUR ASININE CLAIMS, MONETARY IGNORAMUS] 
 

peepee » 03 Jun 2023, 2:45 pm » wrote: ↑

03 Jun 2023, 2:45 pm

         

...'loans' are things... 'things' don't/can't 'create money'...'banksters'/people create money, you stooooooooooopid motherf@cker [and monetary ignoramus]  ...and they do so by tapping some newly-created numbers into a deposit account of 'the borrower'...

...stick to tranny bathroom policy and $hit puppet$/$hit puppetry, you bloviating @sshole.. [and monetary ignoramus]      

[STILL NO EVIDENCE TO BOLSTER ANY OF YOUR ASININE CLAIMS, MONETARY IGNORAMUS]

Yeah, **** (((monetary ignoramus))) that's what I said. LOANS are the "created money" that is used to MAKE DEPOSITS into LENDERS ACCOUNTS!! See, that was soooo easy, you **** PIECE OF ****!!

Move on, PISSBOY, before you get hit with the SPAM COMPLAINT that puts you into @Cannonpointer   HELL!!

Beekeeper » 01 Jun 2023, 6:26 am » wrote: ↑

01 Jun 2023, 6:26 am

Banks don't "create deposits" idiot. CUSTOMERS OF THE BANKS make DEPOSITS, ARSEWIPE!! There is NOTHING fraudulent about it either

       

...this ^^^^ is what YOU said, monetary ignoramus! 

[stoooooopid f@ck ^^^ still believes banks only loan out money deposited with them!!]        
 

peepee » 03 Jun 2023, 3:03 pm » wrote: ↑

03 Jun 2023, 3:03 pm

       

...this ^^^^ is what YOU said, monetary ignoramus! 

[stoooooopid f@ck ^^^ still believes banks only loan out money deposited with them!!]      

Once AGAIN, ****, I fully understand how FRACTIONAL BANKING WORKS!! NO WHERE did I say that banks "only loan out deposits". Deposits are part of the equation that determines the RESERVES the banks much keep, but it DOES NOT mean that is all they loan.

NOW GO **** YOURSELF AND SHUT THE HELL UP!!