Me: The video is commodity money deception. Banks DO NOT loan your deposits. Money is endogenously created by Banks ex nihilo FIRST. Reserves…often in the form of re-hypothecated collateral and not someone’s actual deposits is sought for afterwards. This is the folly of the shadow banking system and DSGE theory, and the failure to perceive the economy as inherently in a state of disequilibrium that can only be equated by monetary gifting directly to the individual. Steve Keen has RE-discovered all of the above except the macro-economic policy of monetary gifting which is the resolution of modern technologically advanced economy’s increasing instability. That’s why he is a nascent social crediter.
Ellen: Ok. I wasn’t presenting the video as monetary policy, just the idea that Malaysia was being punished, which I think is quite likely. How do you mean collateral is rehypothecated for the reserves?
Me: Yes, I understand that, and do not wish to mean that you did. Apologies if anyone had that impression. And you are also correct that the law and the operation of banking was different before the central banking system we now have. But of course we must deal with the system we now have which was the real point of my post.
The repo/repurchase market seizing up (also known as the shadow banking system) was what precipitated the 2008 crisis. It was the wild, multiple rehypothecation (re-lending) of collateral like various securities, bonds, etc. on this market done in conjunction with the mistaken ideology of the reigning DSGE (Dynamic Stochastic General Equilibrium) theory which seemed to justify it that resulted in that seizing up.
Now this is still not the most underlying cause of our economic instability which is the social credit insight that the workings of commerce themselves create the disequilibrium. It was the “straw that broke the camel’s back” wild factor and period of instability that threw the already inherently unstable system…into crisis. Now the managed “equilibrium” of the FED regime/DSGE obscures and extends the life of what appears to be equilibrium…but the actual reality is that there isn’t/wasn’t any equilibrium in fact and all of the recessions, “Asian viruses”, blah, blah plus domination by Finance and a financial elite are “necessary” results of that system. If we’d had a Social Credit system which keeps sufficient money in the many hands of individuals the underlying problem would be solved, we could regulate/eliminate the need for excessive idiocies like the shadow banking system if necessary. Pull the system’s biggest and deepest problem out by the root and many of its attending problems either disappear or dissipate and can be dealt with in a rational and ethical fashion.
Scott Baker: The video actually has nothing to do with Malaysia. But it’s “on the money” as far as the danger of bank confiscation of unsecured deposits goes, though certain Ostriches may try to deny it. ….
Me: Oh I quite agree with the present mistaken danger of confiscation. However, I believe if you follow Steve Keen’s correct assessment of the endogenous ex nihilo nature of money creation as opposed to the commodity/fractional reserve theory it invalidates…the Banks’ legal claim on deposits falls apart because it is actually their excessive speculation/allegiance to invalid economic ideology/poor fiduciary responsibility that caused their insolvency problem….and again, not the fractional reserve/loaning of deposits theory which they in their greed induced frenzy ignored regardless….and so have no actual claim on deposits.
Social Credit/Wisdomics/Gracenomics/ Gracientialism 