Originally posted by minestrone
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Originally posted by Robinho View PostOk let's go over this...
You don't give the bank money, you deposit money in a bank (account).
Banks don't buy houses, they extend credit (not money) to people to buy houses. They don't need your deposit for that necessarily.
The bank has liabilities and financial assets.
I'm trying to present how money flows through the banking system in a karate kid teaching kind of way.
You keep getting a kicking on here because you don't understand wax on has to be waxed off.Comment
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i have cash in hand
i have a current account
i have savings
i have long term savings
i have a car
i have a house
if you add em up, that's how much i have
luckily i dont have any debts
(\__/)
(>'.'<)
("")("") Born to Drink. Forced to WorkComment
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Originally posted by minestrone View PostI'm trying to present how money flows through the banking system in a karate kid teaching kind of way.
You keep getting a kicking on here because you don't understand wax on has to be waxed off.Comment
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Originally posted by Robinho View PostI honestly have no clue what you are talking about or what this has to do with anything?Comment
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Originally posted by minestrone View PostYour savings become assets to someone, to think that your money in a house and your money in a bank are different things displays a deep misunderstanding of how banks work.
It doesn't matter what your savings are being used for, all that matters is the real value will decline if the government prints money. If you have a house and the government prints money, the value of your house in real terms will remain the same (all other things being equal).
A staggeringly simple concept.Comment
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Originally posted by Robinho View PostThis has got nothing to do with how the banks work and i am absolutely baffled why you are even bringing it up.
It doesn't matter what your savings are being used for, all that matters is the real value will decline if the government prints money. If you have a house and the government prints money, the value of your house in real terms will remain the same (all other things being equal).
A staggeringly simple concept.Comment
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Originally posted by minestrone View PostYes we all save our money in .25 savings accounts.Comment
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Originally posted by Robinho View PostThis has got nothing to do with how the banks work and i am absolutely baffled why you are even bringing it up.
It doesn't matter what your savings are being used for, all that matters is the real value will decline if the government prints money. If you have a house and the government prints money, the value of your house in real terms will remain the same (all other things being equal).
A staggeringly simple concept.
'i have cash in hand
i have a current account
i have savings
i have long term savings
i have a car
i have a house'
they will all vary in value contantly.
some of the variation will be so tiny, it can be ignored.
In the event, the only two worth considering are savings and long term savings imo.
And because I do not understand investment strategy properly, my policy is to keep those two savings levels reasonably low (< 300k) and to spend whats left on great holidays and give it away to the kids
all in my honest opinion
(\__/)
(>'.'<)
("")("") Born to Drink. Forced to WorkComment
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Originally posted by minestrone View PostYou do realise that people have savings in their houses?
Not too much, but enough to pay for transport to a less populated area of the world. A few bags of seeds completes Plan Z. You just have to wait underground with tinned food long enough till all the killing and starvation stops.
I was in the cubs... be prepared ;-)Signed sealed and delivered.Comment
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