RE: The American money capture

[NetSurfer <jdwilson@gold.chem.hawaii.edu>]

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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