Login/Join to access your personalised dashboard now! Returning user? Log in or Register
Log in to your GrownUps

Banking mythes with the neo liberal economy

This topic contains 23 replies, has 6 voices, and was last updated by Profile photo of jens jens 6 days, 14 hours ago.

Discussions Politics Today Banking mythes with the neo liberal economy

Viewing 10 posts - 1 through 10 (of 24 total)
  • #1701206
    Profile photo of paulinempaulinem
    Member
    Member since: July 8, 2006
    Topics: 14
    Replies: 666
    paulinem

    John Key’s call for stricter banking regulations is a carefully planned pre-emptive strike on behalf of the ANZ & other banks ahead of the report release from the FMA & Reserve Bank this week.
    If he doesn’t think there’s a problem, why call for stricter regulations?
    ANZ’s colossal two thousand million $ profit made by lending money it doesn’t have, created on it’s computer keyboards, on which it charges fees & interest. The idea that banks lend money deposited with them is a myth – confirmed by the 1955 Royal Commission on Money & Banking.
    https://www.socialcredit.nz/index.html

    No automatic alt text available.
    <span class=”_5s6c”> </span>
    #1702965
    Profile photo of jensjens
    Member
    Member since: May 3, 2006
    Topics: 22
    Replies: 7451
    jens

    No, banks  do not – and  should not  – lend money deposited with – or lent to –  them, which  amounts to granting  credit on credit  –  which was the basic   cause  of the  recent  economic turmoil and bankruptcies.

    John Key  did  the  right   thing by calling  for  stricter  banking regulations, including  perhaps also   tighter  controls  on  not  lending beyond the  accepted safe  proportion of  credit  granting beyond its capital.

    While there is no  doubt  about the  economic value  of bank credit  only  partially  covered  by a bank’s  capital, without  which  money to  borrow for  building or  buying a  house  would be much  more  expensive, a bank  must  be prepared  for its overdraft  credit  being  converted into  cash   well before the  credit has been  repaid – and for this  purpose  savings  deposited with – or “borrowed by” –  the bank serve  a very useful  purpose  for the  bank  and the  whole  economy.

    So,  bank overdraft credit  is not created  “out of nothing” and if it  was,  then  why  would there be a need for  banks  – and us being  eager to  pay for their  services  –   at all ?

     

     

     

    • This reply was modified 3 weeks ago by Profile photo of jens jens.
    #1702970
    Profile photo of paulinempaulinem
    Member
    Member since: July 8, 2006
    Topics: 14
    Replies: 666
    paulinem

    Jens you as usual are in your dream world about banking ..FACT is private owned TRADING  Banks DO create money out of nothing ie not from savings held. They have done this ever since we changed from a Keynesian economy in 1984 to a liberal privatizing economy. Before 1984 only the NZ peoples bank ie the Reserve bank ( controlled by the democratically elected Government)could create money out of nothing.  John Keys  was deliberately trying to side track concerns amongst the community at the  economic power  and control of mostly AUSTRALIAN owned private banks on NZs economy. Ie totally and grossly over  inflated property values for a start !!  The Neo liberal economy gave us the 1929 Great depression !!

    #1702991
    Profile photo of henrihenri
    Member
    Member since: April 18, 2017
    Topics: 2
    Replies: 119
    henri

    Well John Key is picking up a nice salary by being chair of the ANZ board so he has to earn his money somehow.

    😎

    #1703033
    Profile photo of jensjens
    Member
    Member since: May 3, 2006
    Topics: 22
    Replies: 7451
    jens

    Paulinem – even a Reserve  Bank does not  create  credit out of  nothing, because  beside its govt. assigned initial foundation  capital, it can rely on a certain  amount  of  govt. (taxpayer  funded) assistance in the  case of  a cash  shortage for meeting  commitments

    Just  printing more “debt free”  money to cover  cash  shortages is  paid for  by the  diminishing value of  the  currency, including that  in your own  purse.

    And must not  the initial capital  of a  private  bank  be  saved by someone  from somewhere, paulinem ?

    So, our  few  million New Zealanders  just  did  and  still do not  have   enough  capital  savings  to  start  a bank  big enough to satisfy all our  demands  for   bank  credit, and  perhaps  that’s why some of  our  banks were  sold to  Australia to  have access to the  bigger  capital  accumulations  there, which are  capable  of issuing  more  credit  within the  safe proportions  of  sound fractional reserves  banking .

    The  whole  system is very sound and beneficial to all as  long as  there  are not  too many  unable  to repay their debts.

    Bank overdraft  credit  gets  people to save and  create  wealth for themselves e.g.  when  achieving  home  ownership by repaying  their  overdraft bank credit, of which  there is more  available the  more or bigger  banks there  are.

    The  wealth created in New Zealand through Australian  bank  credit must  exceed many times the  profits they earned  here, and  it  could not have been created so fast without that  credit  from overseas.

    What exactly  could be  untrue in this  explanation, paulinem ?

     

     

    #1703528
    Profile photo of paulinempaulinem
    Member
    Member since: July 8, 2006
    Topics: 14
    Replies: 666
    paulinem

     

    Bank profits 2018 = ANZ $2 Billion; Westpac $936 Million; ASB $1.2 Billion: BNZ $1 Billion – made by lending money created out of thin air. Here’s Rod Emmerson’s thoughts on Melbourne Cup Day –

    No automatic alt text available.

     

    #1703612
    Profile photo of jensjens
    Member
    Member since: May 3, 2006
    Topics: 22
    Replies: 7451
    jens

    Yes paulinem – we just have to  accept the reality that there is a  price to pay for  having access to  credit from overseas.

    How  do you or Social Credit propose  to get it  for free, like a  donation  for  charity ?

    Yes, a stroke  with a pen might  conclude a billion  credit dollar deal, but only after some serious  assessments of risks, and the billion  being  still within the  accepted  safe proportion of  the bank’s capital,  and there are  adequate  savings deposits with the  bank for the  inevitable  demand for cash  long  before all of the  credit granted  has been repaid.

    Public  acceptance  by Social Credit of these  banking realities  would  eliminate a lot of bad feelings and nagging suspicions and  mistrust between us with the  knowledge that normally, consumption borrowing for a  price   should be avoided, and the  higher  a capital savings rate we can achieve,  the less we need to borrow  –   and what  we  want to borrow  might  be available at  lower  price because we  would have a  better  credit  rating.

    If we agree on this,  we could all  focus  on the  best  ways  to raise  our  national and  personal  wealth  and welfare creative  savings rates.

     

     

    #1703613
    Profile photo of jensjens
    Member
    Member since: May 3, 2006
    Topics: 22
    Replies: 7451
    jens

    Yes paulinem – we just have to  accept the reality that there is a  price to pay for  having access to  credit from overseas.

    How  do you or Social Credit propose  to get it  for free, like a  donation  for  charity ?

    Yes, a stroke  with a pen might  conclude a billion  dollar credit deal, but only after some serious  assessments of risks, and the billion  being  still within the  accepted  safe proportion of  the bank’s capital,  and there are  adequate  savings deposits with the  bank for the  inevitable  demand for cash  long  before all of the  credit granted  has been repaid.

    Public  acceptance  by Social Credit of these  banking realities  would  eliminate a lot of bad feelings and nagging suspicions and  mistrust between us with the  knowledge, that normally consumption borrowing for a  price   should be avoided, and the  higher  a capital savings rate we can achieve,  the less we need to borrow  –   and what  we  want to borrow  might  be available at a  lower  price because we  would have a  better  credit  rating.

    If we agree on this,  we could all  focus  on the  best  ways  to raise  our  national and  personal  wealth  and welfare creative  savings rates.

    • This reply was modified 1 week, 6 days ago by Profile photo of jens jens.
    #1703628
    Profile photo of don021don021
    Member
    Member since: May 15, 2012
    Topics: 0
    Replies: 1637
    don021

    People complain about the profits Australian Banks make, and export to Australia, yet they still continue to use them. Why?? I use a bank that makes a profit and distributes this to its members, the only bank that does this. The Co operative Bank provides all the services other banks do, is N.Z.owned, as a customer I am part owner, you can’t better that.

    #1703699
    Profile photo of paulinempaulinem
    Member
    Member since: July 8, 2006
    Topics: 14
    Replies: 666
    paulinem

    Don and I use the NZCU as my bank BUT these are only add on banks NZCU is attached to Westpack and I suspect the Co-operative bank is also attached to a Aussie bank ..only Kiwi bank is a genuine NZ bank.

    Jens Social credit economic policy is similar to Keynesian  economics ..very similar. You know the economy we had previous to 1984 and Roger Douglas changed it to privatised every thing with a  liberal economy. The  pre 1984 economy we had people control over ( Reserve Bank )  Muldoon did borrow big to build Manapouri Bannackburn Clyde dams giving us cheap viable no polluting electricity. Marsden point et etc ….fast forward to  Bill English finance minister 2008 – 20017 borrowed from overseas banks  BILLIONs  Result the economy looks healthy with all that borrowed money… He whom lends controls (  what did we loose by English borrowing  OUR SOVEREIGNTY . By the way Jens the banks whom lent possibly by China CREATED the money they lent us ….. Pre 1984 we saved or payed off ( HP ) anything we bought …overseas money was scarcely available and not wasted. After 1984 … English borrowing … overseas money is plentiful …people dont save to buy products they put it on the credit card, Trading banks like ANZ EXPECT the debt from credit card to be paid by REAL hard earned etc money. Oh the dams built by Muldoons government do they give us cheap power NO because John Key and his crones sold the dams to their friend. Did they  people approve   the sale of our dam assets  NO there was a referendum  that  overwhelming said DONT SALE our assets. Overseas creditors friends now own much of our  land and houses for SPECULATION benifit.  Our people more and more are forced to live in cars or pay high prices for  rent of  place to livve

Viewing 10 posts - 1 through 10 (of 24 total)

You must be logged in to reply to this topic.

Advertisement
 
Join Free.  Register for newsletter updates & complete your membership for full site access.  Welcome & Enjoy!

Register Free today and go in the draw to win a $50 gift card!

Close this Window
 
GrownUps

GrownUps, New Zealand’s best lifestyle website, social club & brain training hub for 50+.

Join 145,000 GrownUps for Free. Register now to receive our regular email newsletters to keep you up to date & complete your membership to access all areas of the site.  We can’t wait to meet you.

Enjoy!

Register Free today and go in the draw to win a $50 gift card!