Full Reserve Banking

[Fake Boris]

Look guys I'm not about to give you a crash course on the basics of the monetary system. I've given you all you need, do your homework if you want to.

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

Henry Ford

[Fake Boris]

Think about it Rah.

Do you think checking services really are free?

How does the bank cover the costs?

[Fake Boris]

The bank would charge for checking services like any business. Typically, 100% proponents also say that fractional reserves should be allowed on fixed term savings deposits.

BTW after some verifications I think this one's wrong.

[rah]

Just simply admit that you were wrong when you said I was being cheated.
Or explain it.
Or stop pretending to be an expert.

For me I get more back than they do. Because I know what I'm doing.
Not everyone does. And I never said it was free, I just said I never pay fees for it.

[Fake Boris]

Why don't you explain how a bank survives providing "free" checking services?

You probably think too that TV and Facebook are "free"?

[rah]

They make money by only paying less than 1% in interest on accounts.
If your average balance is less than 2K even if they're making 10% a year on you that's only 200 dollars a year. (and I doubt it's even that much)
If you think the service of checking, savings, online bill paying, online transfers, government deposit guarantees, reward points, etc. is valued above that, then how you being cheated?
Being cheated was your claim, which you have yet to back up with any actual facts. So until you do, stop pretending to be superior.

[Elok]

Well, I can't say I'm deeply impressed by your insistence that I "do research" to back up your claims for you. But I am simply amazed that one of the most famous anti-Semites in American history thought poorly of banking. That really beefs up your point.

[Fake Boris]

If your average balance is 2K then they get to earn interest on 15-20K.

This privilege is much more profitable than free checking services and you'd be better served if it were socialized. And I'm not even talking about the elimination of public debt. Care to find out what percentage of your tax dollars goes to debt servicing?

Technically eliminating the public debt is only a detriment to you if you earn more revenue from personal investment in public debt instruments than the percentage of your taxes that goes to debt service, i.e. if you're part of the ~1%.

[Fake Boris]

Well, I can't say I'm deeply impressed by your insistence that I "do research" to back up your claims for you. But I am simply amazed that one of the most famous anti-Semites in American history thought poorly of banking. That really beefs up your point.

You obviously don't comprehend any of the explanations I have provided; I can't do anything more for you. Sorry.

[rah]

If your average balance is 2K then they get to earn interest on 15-20K.

More proof that you have no idea what the hell you're talking about. But I guess I shouldn't be surprised.

On payday twice a month, just under 3 grand is deposited. Within two days (due to auto transfers that amount drops below 2K and within a week it drops to about a grand.
If you think that means they're earning interest on 15 to 20 grand, you need to go back to school to learn math again.

[Fake Boris]

More proof that you have no idea what the hell you're talking about. But I guess I shouldn't be surprised.

On payday twice a month, just under 3 grand is deposited. Within two days (due to auto transfers that amount drops below 2K and within a week it drops to about a grand.
If you think that means they're earning interest on 15 to 20 grand, you need to go back to school to learn math again.

The bottom line is that you totally support full reserve banking; you just don't know, because you don't realize you live in a system of fractional reserve.

[Dauphin]

More proof that you have no idea what the hell you're talking about. But I guess I shouldn't be surprised.

On payday twice a month, just under 3 grand is deposited. Within two days (due to auto transfers that amount drops below 2K and within a week it drops to about a grand.
If you think that means they're earning interest on 15 to 20 grand, you need to go back to school to learn math again.

I assume he is doing a fractional reserve roll up calculation. They loan out 80% of 2k, then 80% of that amount etc... At an 80% rate they get an effective lend out of 10k on a 2k deposit.

[rah]

The bottom line is that you totally support full reserve banking; you just don't know, because you don't realize you live in a system of fractional reserve.

That's your factual explanation that I'm being cheated. You are pathetic. When you are lacking facts just throw around accusations.
I don't give a ****. I'm just interested in getting services at what I consider a reasonable cost. Which I am with my checking account and have provided background facts. You have yet to back up your claim that I'm being cheated. So either provide that proof or state that you were wrong. It's that simple.

[Fake Boris]

I have already told you that the bank gets to earn interest on 15-20K from your 2k. This is a fact.

Good luck

[Elok]

You obviously don't comprehend any of the explanations I have provided; I can't do anything more for you. Sorry.

I comprehend all of the explanations you have provided in this thread--in the same sense that I comprehend all the explanations rah has made of the Chicago subway system. There's nothing to comprehend, you pile claims on top of claims, or refer me to a source I have no reason to trust, and nothing you have said addresses the basic problem that an infinite supply of a good must inevitably make its value plummet.