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Jesup, IA | John - After reading through this thread, I must side with Cypull and Iowegian. I was a banker for a decade, and I know for a fact Cypull has been a banker for 35 years. I went to college with him. Even further, his sister is a bank examiner!
I know the Positive Money and video clips look professional, but I do not trust their analysis. They simply choose to ignore the accounting of the next step after a loan is made. Yes, booking a loan results in making a deposit into a customer account. Thereby the bank's balance sheet grows. But it's as if they simply don't understand the accounting in the next step when the customer uses that money to make their purchase. What they are claiming as "money growth" is in actuality offset by the funds leaving the bank to be used in the customer's purchase.
Positive Money may have a slick website and good video, but I can also find you great websites simultaneiously telling you GMO's are saving and collapsing the world's food system. I don't know Positive Money's agenda, but they do not understand bank / federal reserve accounting, as do some of the well intentioned posters here. Did you notice the guys talking about money creation were simply "green screened" in front of the picture of a vault full of gold? Kind of like the weather man isn't really standing in front of a big weather graphic? He's just standing in front of a "green screen" and the map is electronically situated as a background?
Elements of the "Multiplier Effect" of fractional reserve banking are tossed about in this thread, but not always correctly. The multiplier effect is what drives true creation.
Edited by Ben Riensche 12/13/2014 14:15
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Banking, one more time....
