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https://positivemoney.org/how-money...-part-3/#1504023619095-89071630-170dbe3c-0a31
If you read the above thing from that website, the author is being misleading to suggest that it's something insidious or shocking that is going on, even though it seems that he perfectly understands that the "money created by commercial banks" isn't REALLY money at all. When banks lend, they create an asset in their books since a loan is an asset to the bank, which can be converted to money but not money in the same sense as notes or coins. For instance, you can sell your house & convert it to money but that doesn't mean that the house ITSELF is money; it's the same with bank-deposits, we perceive the deposit-amount in our bank-account as "money" but it's merely an asset to us, which the bank could convert to money when we want but of course, if ALL OF US showed up at our respective banks to get our money, then the banks wouldn't be able to pay us all since like I've said, banks don't create money in any real sense, & most of the money that we'd all deposited in banks was loaned out by banks. Of course, IF such a highly unlikely thing ever happens that every depositor in the country wants to take out their deposit, then central-bank is supposed to step in & produce that money to pay all of our deposits but again, that's the central-bank creating money, not the commercial banks.
Here's a question for YOU. IF banks "create money" when they lend, why money isn't created when individuals (like you & me) loan money to one to another? What is that "magical" thing SPECIFICALLY that banks do, that doesn't happen when individuals lend money to one another privately? In essence, there's no difference between the two.
If you read the above thing from that website, the author is being misleading to suggest that it's something insidious or shocking that is going on, even though it seems that he perfectly understands that the "money created by commercial banks" isn't REALLY money at all. When banks lend, they create an asset in their books since a loan is an asset to the bank, which can be converted to money but not money in the same sense as notes or coins. For instance, you can sell your house & convert it to money but that doesn't mean that the house ITSELF is money; it's the same with bank-deposits, we perceive the deposit-amount in our bank-account as "money" but it's merely an asset to us, which the bank could convert to money when we want but of course, if ALL OF US showed up at our respective banks to get our money, then the banks wouldn't be able to pay us all since like I've said, banks don't create money in any real sense, & most of the money that we'd all deposited in banks was loaned out by banks. Of course, IF such a highly unlikely thing ever happens that every depositor in the country wants to take out their deposit, then central-bank is supposed to step in & produce that money to pay all of our deposits but again, that's the central-bank creating money, not the commercial banks.
Here's a question for YOU. IF banks "create money" when they lend, why money isn't created when individuals (like you & me) loan money to one to another? What is that "magical" thing SPECIFICALLY that banks do, that doesn't happen when individuals lend money to one another privately? In essence, there's no difference between the two.
In some countries in the world they even do vote about "Sovereign Money" and even there the meanings go in different ways. And specially the gus which are against it have the tendencies to argue in a tongue like you do. But never mind as at least I live in a quit free country to speak openly about my opinions. I do not know about you.
Any way, your second question is a thought worth, even you should know that banks and there regulations are under laws and we as privat person are not under this specific laws. Other wise you could now come to me, lend some moeney from me, I will give you a paper which shows that this paper has any value, you promise me to pay your regular money every month we agreed to and now you go to the car shop and they say: Hey, thats from Dan, and we accept this paper, so take the care and thats it and we will do the rest with Dans guarantee,
But this is how it not works for us people. Now if you want to know more, in case you do not know, then here you go:
Banking Regulations in India: https://www.globallegalinsights.com/practice-areas/banking-and-finance-laws-and-regulations/india
or read here about the same topic: https://www.investopedia.com/articles/investing/112714/regulations-govern-banking-india.asp
This regulations, a bit different from country to country, exist in every place in the world.
It is politicaly motivated basically by the idea of "Neoliberalism": https://simple.wikipedia.org/wiki/Neoliberalism But I think this is now a point I go very far away from the main idea of this thread and I will not further post on "Neoliberalism".
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And yes: I am not a Muslim as "Siddhant4u" in the next post extracted out from this post. I do not know about "Hawala":, not even know in details about it. So thanks to "Siddhant4u" to come up with it. On the other hand I know how to do such stuff in Christian Communities in other ways. But you need to know the flaws and wholes of the existing laws if you want to stay in the range of the laws which "Hawala" is may or may is not in many cases. Mc Kinsey and other companies do clearly give information at its best to any company/person which want to know about how this is done and even can pay for those services.
In the hawala system, which requires complete trust, a money broker collects funds at one end of the operation in a country, while another broker in another country, often from the same clan, distributes the funds at the other end.
To move large sums of money, they can avoid the banking system by using hawala money movers or couriers.
Many schemes - including the hawala money-transfer networks in South Asia and the Mideast - use unrelated accounts in different countries, making them hard to shut down.
U.S. aid and a crackdown on invisible hawala money transfers lifted Pakistan's economy.
Money laundering in the Indian Ocean basin relies upon a traditional alternative banking system known as hawala or hundi, which makes it difficult to trace money transfers.
(Source: Google Translate)
Any way, your second question is a thought worth, even you should know that banks and there regulations are under laws and we as privat person are not under this specific laws. Other wise you could now come to me, lend some moeney from me, I will give you a paper which shows that this paper has any value, you promise me to pay your regular money every month we agreed to and now you go to the car shop and they say: Hey, thats from Dan, and we accept this paper, so take the care and thats it and we will do the rest with Dans guarantee,
But this is how it not works for us people. Now if you want to know more, in case you do not know, then here you go:
Banking Regulations in India: https://www.globallegalinsights.com/practice-areas/banking-and-finance-laws-and-regulations/india
or read here about the same topic: https://www.investopedia.com/articles/investing/112714/regulations-govern-banking-india.asp
This regulations, a bit different from country to country, exist in every place in the world.
It is politicaly motivated basically by the idea of "Neoliberalism": https://simple.wikipedia.org/wiki/Neoliberalism But I think this is now a point I go very far away from the main idea of this thread and I will not further post on "Neoliberalism".
-------
And yes: I am not a Muslim as "Siddhant4u" in the next post extracted out from this post. I do not know about "Hawala":, not even know in details about it. So thanks to "Siddhant4u" to come up with it. On the other hand I know how to do such stuff in Christian Communities in other ways. But you need to know the flaws and wholes of the existing laws if you want to stay in the range of the laws which "Hawala" is may or may is not in many cases. Mc Kinsey and other companies do clearly give information at its best to any company/person which want to know about how this is done and even can pay for those services.
In the hawala system, which requires complete trust, a money broker collects funds at one end of the operation in a country, while another broker in another country, often from the same clan, distributes the funds at the other end.
To move large sums of money, they can avoid the banking system by using hawala money movers or couriers.
Many schemes - including the hawala money-transfer networks in South Asia and the Mideast - use unrelated accounts in different countries, making them hard to shut down.
U.S. aid and a crackdown on invisible hawala money transfers lifted Pakistan's economy.
Money laundering in the Indian Ocean basin relies upon a traditional alternative banking system known as hawala or hundi, which makes it difficult to trace money transfers.
(Source: Google Translate)
Last edited:
https://www.mckinsey.com/business-f...03&hdpid=c7a481dd-8220-4e7f-8bd7-c56b3e75033a
Article from McKinsey & Company
A Basic Tool for Investment Decisions
Article from McKinsey & Company
A Basic Tool for Investment Decisions
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