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Smart Girl...
- Thread starter DarylinAjax
- Start date
MaxTO
Well-known member
A. Here is a breakdown of the largest holders of Canadian debt:
Life insurance companies and pension funds - 24%
Mutual funds, investment dealers, etc - 22%
Non-residents - 14%
Chartered banks and "near-banks" - 12%
Other smaller groups that hold Canadian debt include: the Bank of Canada, different levels of government in Canada (federal, provincial, municipal, social security), persons and unincorporated businesses and non-financial corporations.
Want to add ... I did copy and past that info listed above
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In simple terms what gives our money value is the same thing that gave gold value, rarity.
Your figures on how much money is created are pretty far off...ever heard of hyperinflation?
The issue here is that the video you you recommended states that our government borrows all this money from private banks. The video is a ****ing joke. That is my point.
MaxTO
Well-known member
Sorry but that is wrong .
And yes , hyper inflation is when there it to much currency in circulation .
Please have a look at the link that I posted on fractional reserve banking as that is the system that we work on . Or if you don't like that source , which I could understand and respect , please research the term for yourself .
Our money is dept based , please prove me wrong . Once again , research the term fractional reserve banking .
From 97-08 canada reduced its debt by about 100 billion.
MaxTO
Well-known member
One more link ... http://www.investopedia.com/terms/f/fractionalreservebanking.asp#axzz1uz5w12lm
[h=2]Definition of 'Fractional Reserve Banking'[/h]A banking system in which only a fraction of bank deposits are backed by actual cash-on-hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties. Most countries operate under this type of system.
Also known as "fractional deposit lending".
[h=2]Definition of 'Fractional Reserve Banking'[/h]A banking system in which only a fraction of bank deposits are backed by actual cash-on-hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties. Most countries operate under this type of system.
Also known as "fractional deposit lending".
MaxTO
Well-known member
Source link please ?
But yes , I do know that Canada did repay some of its dept I do not disagree with you at all .
And yes I used the word take in as a government takes in taxes , you use the term made , sure I will go along with that too .
But like it or not we are on a F.R banking system with all the good and bad that goes with it , once again not sure where there is a disagreement here?
Canada does issue bonds as a means to generate income to balance its budget , once again not sure where there is a disagreement here either ?
And yes , given how a F.R banking system worke , money is created " out of thin air " once again , not sure where there is disagreement here either ?
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Again our disagreement is with your ******** video. Your numbers are way off and you keep back peddling.
What is it that gives our currency value? And dont say fractional reserve banking.
MaxTO
Well-known member
Please post some links to back up some of your points .
a big factor of a nations currancy value when compaired to another nations curancy is prime lending rate , political stability , the nations dept to earning ratio and yes how much is in circulation .
But most importantly ...
The value of currency is determined by its selling and purchase price as a commodity. This is affected by the amount of currency that is bought. When a currency is very popular and many people buy it, then its value increases. However, when a currency is not purchased often, then its value decreases
Read more: What Determines the Value of Currency? | eHow.com http://www.ehow.com/facts_4987763_what-determines-value-currency.html#ixzz1uz9Wq6W4
See that above , it's called a link , yes I have posted a few to try and show my point . I would really like it if you too could also post some links to back up your position .
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MaxTO
Well-known member
Yes and if you notice right there in the first sentence it states exactly what I have been telling you !
And I quote " The Canadian government debt, commonly called the "public debt" or the "national debt", is the amount of money owed by theGovernment of Canada to holders of Canadian Treasury security "
Thank you ! See how nice links are !
OpenGambit
Banned
What the **** is dept?
Sorrry I learned economics in school out of a text book so when you ask that question I start at the beginning, but you said i was wrong......shows what you know.
Cut out all the modern banking and trading systems and there are basic principles to currency. I cant always trade my my goods and services for yours, so we need some common value system to easy the trade.
MaxTO
Well-known member
Look how about this ...
I respect you , I would also like to consider you a friend . I think perhaps we , or I , have some how misinterpreted the others position . IMHO we seem to be arguing a point based on a movie , and I think it might be possible that we are reading to much into what one another is saying and leading us , or I , to be missing the other persons point .
Seems that there is a lot being implied on what one thinks the other thinks of a movie .
I apologize for any part that I played in ruffling feathers and it's not my wish to put words into your mouth , once again , I respect you and I am disappointed that our first thread encounter lead to a heated debate on an issue that is based on a misunderstanding of what our positions are .
I respect you , I would also like to consider you a friend . I think perhaps we , or I , have some how misinterpreted the others position . IMHO we seem to be arguing a point based on a movie , and I think it might be possible that we are reading to much into what one another is saying and leading us , or I , to be missing the other persons point .
Seems that there is a lot being implied on what one thinks the other thinks of a movie .
I apologize for any part that I played in ruffling feathers and it's not my wish to put words into your mouth , once again , I respect you and I am disappointed that our first thread encounter lead to a heated debate on an issue that is based on a misunderstanding of what our positions are .
One more time.
That video made me LOL for real after only 5 min.
Most of YOUR posts go against what the video says.
MY opinion on the fractional reserve banking system.....who am i to comment of over a hundred years of evolution. We have come a long way from carrying beaver pelts in our wallets.
The debt issue isnt the banking systems fault, our government has put us in this debt. Its completely possible to report a deficit during a recession then pay off debts during an economic boom.
OpenGambit
Banned
I don't even think there is anything wrong with running deficits or carrying debt ( within reasonable levels ).
Proper levels of leverage taken for the purposes of capital investment are fine. Current consumption, not as much but I woudn't say its never acceptable.
I incurred about 60 thousand dollars of student loan debt, and now make 60 thousand dollars a year more than before I went to school.
Well worth it.
Proper levels of leverage taken for the purposes of capital investment are fine. Current consumption, not as much but I woudn't say its never acceptable.
I incurred about 60 thousand dollars of student loan debt, and now make 60 thousand dollars a year more than before I went to school.
Well worth it.
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