Print Baby Print! Why the London financial system is a joke.

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illegaltobepoor
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#1
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#1
Majority of people seem to believe that London is a success because of all the hard work of city Traders and toffs who drive Aston Martins. However I am going to give you a glimpse into my world.

What if I told you private Banks like HSBC have a license to print as much money as they like? Most people would laugh and disregard what I just said but that is exactly the truth.

London is mainly a success because every single day the big private banks are money printing. This is known as Quantitative Easing.

QE is basically printing a huge sum of money and decreasing the value of the pound. But it doesn't have to be declared as QE if it declared as a loan.

The majority of these loans are given to private finance firms like hedge funds who gamble money on the open market.

And that is how the cycle of Privatize the profits and Nationalize the losses begins. It would explain why the UK has huge financial debt levels.

Imagine if some of that money was actually put into new housing associations? How about small businesses? How about a nationalized child care centre for each town & city? But no. Instead of increasing productivity that money is loaned to the Canary Wharf Bandits who gamble money away every day.

And this money isn't even there's. They haven't exactly worked for it. It is our money and it is about time we said NO and put a stop to private banks printing our money. The licence to print money needs to be taken away from the private sector and used with strict scrutiny. It should be asset of the state.

I think everyone should watch the video below before voting in May.

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Quady
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#2
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#2
QE stopped over two years ago...
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illegaltobepoor
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#3
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#3
(Original post by Quady)
QE stopped over two years ago...
If I print money out of nothing what is it? Its basically devaluation of the host currency. It is QE. Now if I print money and loan it out it ceases to become QE since the repayments neutralize the weakening of the currency. But if the debtor defaults the loan may as well cause the same kind of effects as QE so it is in effect the same thing. To deny so is to deny the fact that money printing makes everyone elses currency worth less.

Choose your next words carefully.
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Quady
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(Original post by illegaltobepoor)
If I print money out of nothing what is it? Its basically devaluation of the host currency. It is QE. Now if I print money and loan it out it ceases to become QE since the repayments neutralize the weakening of the currency. But if the debtor defaults the loan may as well cause the same kind of effects as QE so it is in effect the same thing. To deny so is to deny the fact that money printing makes everyone elses currency worth less.

Choose your next words carefully.
Are UK bank reserve ratios getting higher or lower?

What is Sterling being devalued against?
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MatureStudent36
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#5
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#5
(Original post by illegaltobepoor)
If I print money out of nothing what is it? Its basically devaluation of the host currency. It is QE. Now if I print money and loan it out it ceases to become QE since the repayments neutralize the weakening of the currency. But if the debtor defaults the loan may as well cause the same kind of effects as QE so it is in effect the same thing. To deny so is to deny the fact that money printing makes everyone elses currency worth less.

Choose your next words carefully.
You do know that the financial sectir on london pays frothe nhs and the welfare state.

It would be good if principaled people such as yourself could voluntarily take cuts in welfare payements and pay for your own nhs treatments because you don't want to use the city's money.
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illegaltobepoor
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#6
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#6
(Original post by MatureStudent36)
You do know that the financial sectir on london pays frothe nhs and the welfare state.

It would be good if principaled people such as yourself could voluntarily take cuts in welfare payements and pay for your own nhs treatments because you don't want to use the city's money.
Are personal attacks the only thing you can do MatureStudent36? And what welfare?

The financial sector gets a huge chunk of its funds from private banks printing money out of thin air. I say take the ability to print money away from private hands and let only the state have that privilege. That way we will have less crony capitalism and loans can be directed to more productive ventures rather than speculating and producing nothing.
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illegaltobepoor
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#7
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#7
(Original post by Quady)
Are UK bank reserve ratios getting higher or lower?

What is Sterling being devalued against?
UK bank reserves are getting lower and lower.

Other countries aren't stupid. When they see and hear of money printing going on that reduces the strength of Sterling.
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Quady
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#8
(Original post by illegaltobepoor)
UK bank reserves are getting lower and lower.

Other countries aren't stupid. When they see and hear of money printing going on that reduces the strength of Sterling.
No they aren't.

The pound is at a six year high against most currencies. The pound really fell in 2008 when private banks stopped printing pounds out of thin air - how does that make any sense?
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illegaltobepoor
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#9
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#9
(Original post by Quady)
No they aren't.

The pound is at a six year high against most currencies. The pound really fell in 2008 when private banks stopped printing pounds out of thin air - how does that make any sense?
your have to think about it till you get it. I'm going to watch some dvds i rented.
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Quady
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#10
(Original post by illegaltobepoor)
your have to think about it till you get it. I'm going to watch some dvds i rented.
You mean you don't know what Sterling is devaluing against?

Enjoy. I'm watching some Adam Curtis I downloaded.
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saayagain
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#11
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#11
(Original post by Quady)
No they aren't.

The pound is at a six year high against most currencies. The pound really fell in 2008 when private banks stopped printing pounds out of thin air - how does that make any sense?
Demand and supply my friend. Since London is the most deregulated financial sector in the world, companies funnel their transactions through london and hence have to buy the pound. This sustains the value of the pound. If the city goes tits up the pound will devalue due to capital flight aka runs on the banks by institutional investors such as hedge funds, pension funds etc...

Banks create money everytime they issue a loan. Car dealerships create money when they sell cars on finance. etc etc...
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saayagain
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#12
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#12
(Original post by illegaltobepoor)
Majority of people seem to believe that London is a success because of all the hard work of city Traders and toffs who drive Aston Martins. However I am going to give you a glimpse into my world.

What if I told you private Banks like HSBC have a license to print as much money as they like? Most people would laugh and disregard what I just said but that is exactly the truth.

London is mainly a success because every single day the big private banks are money printing. This is known as Quantitative Easing.

QE is basically printing a huge sum of money and decreasing the value of the pound. But it doesn't have to be declared as QE if it declared as a loan.

The majority of these loans are given to private finance firms like hedge funds who gamble money on the open market.

And that is how the cycle of Privatize the profits and Nationalize the losses begins. It would explain why the UK has huge financial debt levels.

Imagine if some of that money was actually put into new housing associations? How about small businesses? How about a nationalized child care centre for each town & city? But no. Instead of increasing productivity that money is loaned to the Canary Wharf Bandits who gamble money away every day.

And this money isn't even there's. They haven't exactly worked for it. It is our money and it is about time we said NO and put a stop to private banks printing our money. The licence to print money needs to be taken away from the private sector and used with strict scrutiny. It should be asset of the state.

I think everyone should watch the video below before voting in May.

QE isn't done by banks like HSBC. It's done by the central bank which is king of money creation. Liquidation in the financial market is all a ploy to keep the unsustainable ponzi scheme economy going. Sure they could create money and loan it to causes that actually matter but politicians aren't aware of the power banks yield. Socialism needs to conquer finance in order to really be effective. This would also eradicate interest rates which are by nature a system used to make those without money and capital poorer and those with money and capital richer...

Commercial banks create money when they issue loans (mortgages, credit cards, etc...)

The current political parties have no stance on this issue. You will have to vote for the Socialist party or some other minuscule party that has no representation in the slightest.

All we can do is be aware of the heinous acts of private banks and be ready to suggest an alternative when the current system comes to its inevitable demise.
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MatureStudent36
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#13
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#13
(Original post by illegaltobepoor)
Are personal attacks the only thing you can do MatureStudent36? And what welfare?

The financial sector gets a huge chunk of its funds from private banks printing money out of thin air. I say take the ability to print money away from private hands and let only the state have that privilege. That way we will have less crony capitalism and loans can be directed to more productive ventures rather than speculating and producing nothing.
The financial sector is a huge revenue maker for the exchequer. Without it, we wouldn't have half as lucrative welfare or nhs system that we have now.

So are you going to man enough to forgo using the nhs or welfare system out of principal?
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Rakas21
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#14
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#14
Can't say i have a problem with fiat banking (assuming that's what your getting that - your videos 2 hours long and i've just got my student loan ). It's sustainable so long as people have confidence that their pound will buy them a loaf of bread every month and that pound will still buy them a loaf of bread at the end of the month so long as we avoid a collapse of the pound or a dependent currency like the dollar which would in turn cause a collapse of the pound due to the global economic shock-wave. In the meantime though it allows the credit supply to be inflated and for society to be further along than it otherwise would economically (and in turn technologically).

In terms of a nationalised banking system, i don't support that. I think that business lending is sufficient (the UK ranks well in terms of access to credit in that regard) and that our main woes in terms of boom and bust stem from the household credit market and in turn loose leverage ratios.
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mojojojo101
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#15
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#15
(Original post by MatureStudent36)
The financial sector is a huge revenue maker for the exchequer. Without it, we wouldn't have half as lucrative welfare or nhs system that we have now.

So are you going to man enough to forgo using the nhs or welfare system out of principal?
So we are all supposed to suck up the fact that there are a few at the top of society who, frankly, have little to no idea what they are doing, playing with money that doesn't belong to them and risking the stability of not just the nations, but the entire worlds economic system because the government is gracious enough to spend a fraction of tax to ensure that we don't die of entirely preventable diseases?
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MatureStudent36
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#16
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#16
(Original post by mojojojo101)
So we are all supposed to suck up the fact that there are a few at the top of society who, frankly, have little to no idea what they are doing, playing with money that doesn't belong to them and risking the stability of not just the nations, but the entire worlds economic system because the government is gracious enough to spend a fraction of tax to ensure that we don't die of entirely preventable diseases?
Uiu don't really haveych understanding about the modern day financial sector do you?
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Falcatas
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#17
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#17
(Original post by illegaltobepoor)
Majority of people seem to believe that London is a success because of all the hard work of city Traders and toffs who drive Aston Martins. However I am going to give you a glimpse into my world.

What if I told you private Banks like HSBC have a license to print as much money as they like? Most people would laugh and disregard what I just said but that is exactly the truth.

London is mainly a success because every single day the big private banks are money printing. This is known as Quantitative Easing.

QE is basically printing a huge sum of money and decreasing the value of the pound. But it doesn't have to be declared as QE if it declared as a loan.

The majority of these loans are given to private finance firms like hedge funds who gamble money on the open market.

And that is how the cycle of Privatize the profits and Nationalize the losses begins. It would explain why the UK has huge financial debt levels.

Imagine if some of that money was actually put into new housing associations? How about small businesses? How about a nationalized child care centre for each town & city? But no. Instead of increasing productivity that money is loaned to the Canary Wharf Bandits who gamble money away every day.

And this money isn't even there's. They haven't exactly worked for it. It is our money and it is about time we said NO and put a stop to private banks printing our money. The licence to print money needs to be taken away from the private sector and used with strict scrutiny. It should be asset of the state.

I think everyone should watch the video below before voting in May.


It isn't the banks but the state who enable the banks.

The state have the ability to type whatever they want to in their bank accounts. The greedy bankers are just serving their own self interest.

It is ludicrous to constantly keep blaming the banks when the state are the ones who facilitate this.
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anarchism101
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#18
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#18
(Original post by illegaltobepoor)
Majority of people seem to believe that London is a success because of all the hard work of city Traders and toffs who drive Aston Martins. However I am going to give you a glimpse into my world.

What if I told you private Banks like HSBC have a license to print as much money as they like? Most people would laugh and disregard what I just said but that is exactly the truth.

London is mainly a success because every single day the big private banks are money printing. This is known as Quantitative Easing.

QE is basically printing a huge sum of money and decreasing the value of the pound. But it doesn't have to be declared as QE if it declared as a loan.

The majority of these loans are given to private finance firms like hedge funds who gamble money on the open market.

And that is how the cycle of Privatize the profits and Nationalize the losses begins. It would explain why the UK has huge financial debt levels.

Imagine if some of that money was actually put into new housing associations? How about small businesses? How about a nationalized child care centre for each town & city? But no. Instead of increasing productivity that money is loaned to the Canary Wharf Bandits who gamble money away every day.

And this money isn't even there's. They haven't exactly worked for it. It is our money and it is about time we said NO and put a stop to private banks printing our money. The licence to print money needs to be taken away from the private sector and used with strict scrutiny. It should be asset of the state.

I think everyone should watch the video below before voting in May.
Just a couple of clarifications:

Private banks can't literally print physical money - only the Bank of England can (at least in England and Wales - Scottish and Northern Irish banks can print private banknotes, but these technically aren't legal tender anyway). Banks are however allowed to create virtual money for the purposes of loaning.

As for 'creating as much as they want' - legally true, but realistically false. The higher a bank's reserve ratio (to oversimplify things, the ratio of how much the bank has lent out in virtual cash to how much physical cash it actually has in its vaults), the less able it is to give customers cash on demand (i.e. operate normally); at worst, this causes a run.

Now, of course, banks still often let their reserve ratios get higher than they should (as many did in the crash), and indeed, the possibility of the UK introducing a legal reserve requirement has been discussed.
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ChaoticButterfly
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#19
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#19
A shorter more to the point video

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illegaltobepoor
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#20
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#20
(Original post by Falcatas)
It isn't the banks but the state who enable the banks.

The state have the ability to type whatever they want to in their bank accounts. The greedy bankers are just serving their own self interest.

It is ludicrous to constantly keep blaming the banks when the state are the ones who facilitate this.
Well yes. The state should take back the ability to print money. They should stop giving the banks the privilege of printing money. They should spread the wealth in some other core hubs across the country so we can be diverse. We need liquidity in all sectors so we can create new business ventures. If no one is loaning money out then business will just stagnate and move to other countries who will finance the ventures which show promise.
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