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Chrysalis · 26-10-2011, 22:33

It gets loaned out but most of loans are created money, only a small % is based on deposits.

Everytime in history where banks dont have deposits to loan out they allowed to just create the money anyway, so its hardly a showstopper for them. Not to mention the richest people dont save at the likes of barclays they will go offshore anyway.

whilst I am reffering to savings in general, the bulk of the problem is that the top 1-2% of richest people horde 90% of the money. When money is created the same thing is inevitable, 90% of it will always end up at that top 1-2%, when its there its out of the economy lost, it has to be replaced with new created money and hence inflation.

26-10-2011, 22:33	#74
Chrysalis cf.mega poster Join Date: Sep 2003 Posts: 12,047	Re: Economy is worse under us, says Cable It gets loaned out but most of loans are created money, only a small % is based on deposits. Everytime in history where banks dont have deposits to loan out they allowed to just create the money anyway, so its hardly a showstopper for them. Not to mention the richest people dont save at the likes of barclays they will go offshore anyway. whilst I am reffering to savings in general, the bulk of the problem is that the top 1-2% of richest people horde 90% of the money. When money is created the same thing is inevitable, 90% of it will always end up at that top 1-2%, when its there its out of the economy lost, it has to be replaced with new created money and hence inflation.