It's not my theory, it's what the cenral banks are doing. They are injecting cash to provide banks liquidity so they will lend to each other and avoid this credit freeze. The problem is, and you have hit the nail on the head, is that much of the debt held by banks is still unknow and is the product of the expansion of ficticious capital which is a bottomless pit likeky to run into trillion of dollars. It is estimated Australia's four major banks, have $13.8 trillion sub-prime loan investments. Even if only 1% of these loans default it will wipe out the Australian banking sector, as it has in Iceland.
As I said, it is the central banks and governments that are saying these funds are necessary to keep the banks operating.....which means propping them up. I didn't say it will work, it won't, but we are seeing that already. On Oct 10, 8:58 am, KeithInTampa <[EMAIL PROTECTED]> wrote: > On Oct 9, 4:29 pm, Lone Wolf wrote: > Gaar the world economy is one single electronically linked economy. > All the world's banks are completely intertwined with each other, > there are no safe havens Our banks depend on the 60% of their funding > from overseas, there is no way they are getting it, the government is > propping them up, they will collapse. > > ============ > > I will be the first one to admit that I am not an economist. I do > possess common sense, and I do comprehend a "fiat Money System", > wherein "money" is a commodity in and of itself, as opposed to a > monetary system that is based upon a certain commodity, like gold or > silver. > > Lone Wolf, under your theory, how could a government prop up a bank, > if in fact "money" is non-existent and doesn't exist? --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
