I appreciate the courage to posit an unpopular opinion. A few questions:
When you say 'banks' I assume you are including credit unions. Is that correct?
When you say 'money' you seem to be referring to fiat currency. Is there a difference between the two to you?
When you say, "they use our 'money' to fund these loans" you neglect to account for our fractional reserve paradigm. Do you acknowledge that 90% of the loan is bank credit that is actually conjured from nothing?
If you buy silver and then the USD collapses, why would you want to convert your silver (money) back into USD (failed fiat)?
How is your argument different from extortion?
Thanks for enlightening this semi-functional retard!
I was just sharing my basic and simple knowledge on how the system works. I am by no means an expert. I just want to share my concerns about how intertwined the system is and what it could mean if the banks crash. I’m not defending them, but I want people to understand the implications. In the end, if the banks crash, we will ultimately be the ones who are hurt by it.
Based on my limited knowledge I don’t know the answers to your first 3 questions. It seems like you know more about how it all works than I do.
This is a good point. If you purchase physical silver then by no means would you want to convert it to USD. I was more so referring to making money by trading silver commodity futures and never actually taking ownership of physical silver. A good real world example right now is in Argentina. They are experiencing rapid inflation. Argentina is the world’s largest exporter of soybean oil and soybean meal. But with the rapid inflation, the farmers aren’t selling their soybeans because whatever the money they get paid for it is worth less the next day. So they are holding onto their soybeans as a hedge against inflation.
I’m not defending the banks by any means. The banking system generally works just fine. The part where they really fucked up is by shorting stocks and commodities. They use the money they got from shorting to issue more loans and make more money on the interest. This is all driven by greed. They absolutely know the risks if something like this were to happen, but they did it anyway because they are blinded by their greed.
This problem really stems from the repeal of the Glass-Steagall act by Clinton. This allowed investment banks and regular banks to converge as one as puts the risk on regular savers and not just the investment banks.
After the Great Depression Glass-Steagall was enacted to prevent it from happening again. The good ol' Democrats (and the Rino's) got rid of that shit so the banks can vacuum up all of our money when they fuck up.
Thanks for responding! I did not mean to imply that you were on the dark side, and acknowledge that MOAR financial turmoil will add stress the to the already-vulnerable.
This entire shit show has been an eye opener for me (and I thought I was already cynical...kek).
Mostly curious whether credit unions are similarly over-leveraged
I appreciate the courage to posit an unpopular opinion. A few questions:
Thanks for enlightening this semi-functional retard!
I was just sharing my basic and simple knowledge on how the system works. I am by no means an expert. I just want to share my concerns about how intertwined the system is and what it could mean if the banks crash. I’m not defending them, but I want people to understand the implications. In the end, if the banks crash, we will ultimately be the ones who are hurt by it.
Based on my limited knowledge I don’t know the answers to your first 3 questions. It seems like you know more about how it all works than I do.
This is a good point. If you purchase physical silver then by no means would you want to convert it to USD. I was more so referring to making money by trading silver commodity futures and never actually taking ownership of physical silver. A good real world example right now is in Argentina. They are experiencing rapid inflation. Argentina is the world’s largest exporter of soybean oil and soybean meal. But with the rapid inflation, the farmers aren’t selling their soybeans because whatever the money they get paid for it is worth less the next day. So they are holding onto their soybeans as a hedge against inflation.
I’m not defending the banks by any means. The banking system generally works just fine. The part where they really fucked up is by shorting stocks and commodities. They use the money they got from shorting to issue more loans and make more money on the interest. This is all driven by greed. They absolutely know the risks if something like this were to happen, but they did it anyway because they are blinded by their greed.
This problem really stems from the repeal of the Glass-Steagall act by Clinton. This allowed investment banks and regular banks to converge as one as puts the risk on regular savers and not just the investment banks.
After the Great Depression Glass-Steagall was enacted to prevent it from happening again. The good ol' Democrats (and the Rino's) got rid of that shit so the banks can vacuum up all of our money when they fuck up.
I was just talking about this to a friend of mine yesterday. Think of all the financial crisis that have occurred since it was repealed.
Thanks for responding! I did not mean to imply that you were on the dark side, and acknowledge that MOAR financial turmoil will add stress the to the already-vulnerable.
This entire shit show has been an eye opener for me (and I thought I was already cynical...kek).
Mostly curious whether credit unions are similarly over-leveraged
WWG1WGA
I thought maybe my post came across as if I was trying to defend the banks so I’m glad you didn’t think that!
I don’t have much knowledge on how credit unions work unfortunately so I can’t shed any light on that subject.
But I do believe that if this is part of Q’s plan then it will all work out in our favor in the end!