Love the discussion. Love Frankstar trying to explain himself to no avail. Hahaha. I get you Frank, but resistance is futile

Good grief, reading this thred is an eye-opener. No wonder this country's economy is in so much trouble, with the stuff that people believe....

Yes, when interest is paid, it accrues to somone else, for which it is an income. But the interest does not accrue to the Reserve Bank, it goes to the people/firms/commercial banks that lends the money to the borrower.

At the end of each day, commercial banks close off their books. Only when commercial banks can not "fund" their negative balances among each other, they approach the Reserve Bank to borrow money. This is their last resort, as this is the most expensive form of financing. (Your Bank typically pays you 1 or 2 % interest on your checking account - when they borrow at the reserve Bank, they pay te repo rate which currently is 6,75%. Typically commercial banks only borrow around 10% or so of all their financing needs from the Reserve Bank.

The Reserve. bank has private shareholders. But they do not share in any profits beyond 10c per share. And it has been 10c a share since the 1920's. Probably one of the worst share investments you could have made....
Even when the Reserve Bank ,makes R5bn profit, the total dividend is legally restricted to R200,000. No typo!
Nor does shareholders have any say in monetary policy - that is done by the MPC (no shareholder sits on the MPC).

Wow... I would love to make a smart comment but I believe this threat has been very educational.
I am going to read up regarding this subject... U have me interested now...
I honestly did not expect education from this site....business related I mean

Watch this: www.youtube.com/watch

12 y/o and she's right!
Research why Kennedy was murdered - but if you're lazy, one of the reasons was he wanted to do away with their reserve bank (Federal Bank).

On 2017-11-11 13:24:56 Mxxx said:
But the interest does not accrue to the Reserve Bank ...

Sorry, also wrong, but at least you're a bit right.
The RB has a hand in determining the inflation figure for the country's currency - which in effect is setting their future loans at a rate they want, indeed a vicious circle!
Now wonder why some private banks are shareholders of the RB...

On 2017-11-11 15:15:37 Skomhc said:
Watch this: www.youtube.com/watch

12 y/o and she's right!
Research why Kennedy was murdered -.

Wow babes. Thank u.
Frightening, to listen and to think a 12 year old knows what I don't. Very smart girl.
I am not going into detail's of what is in my mind but this is definitely a life changing topic.
Thanks to u all

@Skomhc: The Reserve Bank (RB) only receives interest on the bit it lends to the commercial banks. But remember, the RB is not conducting policy with a profit motive. It wants to keep inflation low.i will get back to that.

But if the RB makes a profit, it accrues to the state - i.e. taxpayers. Like i said earlier, shareholders only get R200k in total, irrespective of whether the bank make billions. The rest belongs to the state.

The RB conducts monetary policy by among others changing the interest rate. When interest rates rise, the demand for money falls and the rate of increase of the total money supply slows, which reduces inflation. The RB policy rate - or the repo rate - is a refernce rate. The commercial banks follows this rate. Your mortgage rate or car loan rate is linked to the prime rate. The prime rate in turn is linked to the repo rate. So even though the RB only finances a small part of the commercial banks deficit, it has a strong signal affect and normally all rates in the economy adjust when the RB changes rates.

So why dont the RB Simply makes rates very low? Because then to much money will be created (to much money chasing to few goods),and you get inflation. It is fine balance that needs to be maintained. If the RB gets it wrong, you end up like Zimbabwe, where money becomes worthless.

Remember, inflation hurts the poor much more than the rich. If you are rich, you can buy assets that increase as inflation rise. If you are poor, your money buys less and less.

So heartbreaking when you hear people asking for a higher inflation target. That's the way to go if you want to transfer wealth from the poor to the rich. Ironically, the poor seems to think otherwise...

On 2017-11-11 15:15:37 Skomhc said:
Watch this: www.youtube.com/watch

12 y/o and she's right!
Research why Kennedy was murdered - but if you're lazy, one of the reasons was he wanted to do away with their reserve bank (Federal Bank).

Yes, Skomhc , it's almost certain that's why President Kennedy was murdered .

The Rothschilds own most of the worlds central banks:

humansarefree.com/2013/11/complete-list-of-banks-ownedcontrolled.html

It's amazing that people don't know anything about money and only know how to spend it.

www.youtube.com/playlist

MikeH,

the vast majority will watch with growing disbelief, then check their bankaccounts & policies, then will conclude they still have 'money'... so they'll forget it quickly.


MrX (a more appropriate nomer perhaps?),

I meant a (not 'our') RB (being a the very top of the pyramid, indeed a scheme) creates IOU's out of thin air to pass through the system, creating & concentrating wealth for their owners further down the line at cost of everyone else.
The hopeful virtual currencies try to counter this but they're no option. BRICS may have better merit for the Chinese own ~60% of the world's gold - some of which we produce which may help bridge an inevitable currency crash.