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Cap1 & CCA return


tamadus
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I've heard about this - went to a presentation on it. The difficulty I had was with the assertion that the bank doesn't lend its own cash. After all if the bank is charging interest on money it isn't lending then it makes a handsome profit - so then it has money of its own - how can they prove the bank hasn't used that money?

You may receive different advice to your query as people have different experiences and opinions. Please use your own judgement in deciding whose advice to take.

 

If in doubt seek advice from a qualified insured professional. Any advice I have offered you is done so on an informal basis, without prejudice or liability.

 

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Banks by law can lend 5 times its own assets or money in trust from depositers.

 

Banks can therefore bring into existence "money" which doesnt otherwise exist. The money lent is merely pieces of paper representing 0s and 1s on the BoE computer, themselves representing the nation's money supply and the record of money in circulation.

 

Dont forget that notes and coins have no value in themselves, its what they represent that matters, and they represent a promise by the BoE to pay the holder the value of the note, on demand, backed up by the insane belief that money is actually worth anything at all!

 

Money works only because we all pretend that it means something.

 

The only thing of value is the labour that people do to earn it.

 

In return, *they* pretend to pay us, we pretend that the pieces of paper they give us is equal in value of our labour, and the people we give the pieces of paper to, in exchange for goods and services pretend that the pieces of paper we give them is equal in value to those goods and services.

 

Its like the emperor's new clothes, everything works until someone says:

 

"The Emperor is starkers!!"

 

Then everything starts to unravel.

 

This is what happened when the Roman Empire collapsed and everyone went back to bartering, because everyone stopped pretending that the small round pieces of metal with the ex-Emperor's head on them were recognised for what they were - just small, round pieces of metal with the head of the ex-Emperor of an ex-Empire on them.

 

The only coins that were worth anything, were those made of metal with an intrinsic value and then only because of their intrinsic, perceived value, not because of what they represented.

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Banks by law can lend 5 times its own assets or money in trust from depositers.

 

 

Banks can actually lend over 9 times deposits under the Fractional Reserve banking. They only have to keep 10% of all money on deposit in cash. The rest is sent to the BoE to be held on deposit. Banks cannot lend out depositors money. Money, as you quite rightly say, is created out of thin air, it has no existence.

 

Nobody has ever got a letyter saying they cannoyt have their money because we have lent it out for a £100K mortgage.

They used to years ago but law says they now cannot., although I beleive merchant banks can and still do.

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Which law?

You may receive different advice to your query as people have different experiences and opinions. Please use your own judgement in deciding whose advice to take.

 

If in doubt seek advice from a qualified insured professional. Any advice I have offered you is done so on an informal basis, without prejudice or liability.

 

If you think I have been helpful PLEASE click the scales

 

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I have had a reply from Midlands Today regarding the story they ran.

 

See here for the details.

 

Tried to link to the thread elsewhere but forgot that the CAG admin were so petty and it doesn't work. You wouldn't think we were all working to the same ends would you...real shame.

 

link doesn't work for me

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Doesnt work.

 

I got this:

 

http://*consumer*credit*support*.co.uk/showpost.php?p=38890&postcount=22

 

 

In my email inbox.

 

Takes me to counsumer credit support, but says i cant use it.

 

What is this- it appears to be a secret CAG club with more moderators than members.

 

Most users online ever- 41!

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Thanks

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