From: NetSurfer <jdwilson@gold.chem.hawaii.edu>
Date: Tue, 3 May 94 19:09:45 PDT
To: Istvan Oszaraz von Keszi <vkisosza@acs.ucalgary.ca>
Subject: RE: The American money capture
In-Reply-To: <9405031416.AA24171@acs5.acs.ucalgary.ca>
Message-ID: <Pine.3.07.9405031635.K3436-b100000@gold.chem.hawaii.edu>
MIME-Version: 1.0
Content-Type: text/plain




On Tue, 3 May 1994, Istvan Oszaraz von Keszi wrote:

> Sure she can, especially if she's depositted the money in a
> demand account.  Let me simplify some more.  Alice deposits her
> $1000,  she then wirtes a check for a $1,000 and deposits it to
> her business account.  She then writes a check on here business
> account and deposits it in another account, and so on, until she
> finally writes a check back to herself to cover her original
> check.  Throughout the process, she has created money.  Money
> which she can use to collect interest.  This is known a s kiting
> and is illegal if an individual does it since they can use the
> created money to earn interest.  As long as institutions keep
> accepting Alice's checks, she's creating money which she can use.
> 
 -snip-

> Eaxactly, most financial institutions tend to "borrow" from their
> customers (Depositors) on the very short term, and lend on the
> long term.  So if all the Alice's wanted their money at once, the

So the bank can float the $$ but not the individual.  So much for
"...these truths to be self evident, that all <persons sic> are created
equal" - except when employing the golden rule <he with the gold etc.>.

I can see the attraction of anarchy...

-NetSurfer


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