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Author Topic: ron paul.. banned on media?  (Read 4516 times)

Jon Hodgson

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Re: ron paul.. banned on media?
« Reply #30 on: January 17, 2008, 10:11:14 AM »

maxdimario wrote on Thu, 17 January 2008 14:46

http://news.bbc.co.uk/2/hi/business/6938425.stm

is this a 2 week loan?


Well so far I haven't found the maturity, however they ARE loans (it says so in the article you linked to) and they are short-term (from other articles).
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Jon Hodgson

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Re: ron paul.. banned on media?
« Reply #31 on: January 17, 2008, 11:19:18 AM »

maxdimario wrote on Thu, 17 January 2008 14:46

http://news.bbc.co.uk/2/hi/business/6938425.stm

is this a 2 week loan?


No,

it was a ONE DAY loan

http://www.ecb.int/mopo/implement/omo/html/20070052_all.en.h tml

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PRobb

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Re: ron paul.. banned on media?
« Reply #32 on: January 17, 2008, 12:03:20 PM »

maxdimario wrote on Thu, 17 January 2008 07:21


just recently in the last few months the European Central Bank has injected over 400 billion dollars..

HOW MANY people are aware??

it SHOULD be on the first page of every newspaper.. but it's NOT.




Depends on what paper you read. It was certainly on the front page of the New York Times. If you want serious news, read a serious newspaper.
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The only thing necessary for the triumph of evil is that good men do nothing.
-Edmund Burke

maxdimario

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Re: ron paul.. banned on media?
« Reply #33 on: January 17, 2008, 03:53:54 PM »

do these loans permit banks to increase credit?

in other words, why would a central bank loan money for one day?

what effect would it have?
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Harland

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Re: ron paul.. banned on media?
« Reply #34 on: January 17, 2008, 04:40:24 PM »

maxdimario wrote on Thu, 17 January 2008 07:21


the problem with prosperity is that it gives the common man freedom.

a free man will not act like a slave. He will not be mobilized like a pawn. he will resist corrupt power. he will be informed and make decisions for himself.

sophistication can be used as a weapon to confuse and control.




Hear hear!!
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organica

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Re: ron paul.. banned on media?
« Reply #35 on: January 19, 2008, 05:01:01 PM »

maxdimario wrote on Tue, 15 January 2008 07:22

http://www.youtube.com/watch?v=8GzRWSof8uQ

there's bound to be SOMEBODY trying soil his reputation.




absolutely .  

it's also human nature to slag on the smartest individuals . he's indeed the frontrunner intellectually by a long shot , D's or R's . that's how I seez it ......
 http://www.youtube.com/watch?v=5y6An3X9jic&feature=relat ed


c'est la vie .....



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Jon Hodgson

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Re: ron paul.. banned on media?
« Reply #36 on: January 19, 2008, 05:31:20 PM »

maxdimario wrote on Thu, 17 January 2008 20:53

do these loans permit banks to increase credit?

in other words, why would a central bank loan money for one day?

what effect would it have?


Economies work by moving money around, it's always moving around. Every day banks that are short of cash (not assets, but actual liquid cash), borrow from those that have excess... often just overnight.

When you get an event like the sub-prime mortgage fiasco, one thing is guaranteed to happen, and that is that people lose money... starting with the banks that made the unwise investments, but also anyone that bought into these investments (often indirectly through pension funds).

Ok, so that bit is unavoidable, it's bad luck but it's life. Sometimes an investment doesn't work out.

But when it is a massive event like the sub-prime problem, another, far bigger problem can occur. Because of the nature of derivatives markets it was practically impossible for anyone to quickly establish their exposure, so you don't know how much money you might need, so you keep hold of your excess, but then that means that the banks that are short of cash have noone to borrow from, even though they may have enough assets to cover the debt, they need cash, which causes a problem, and then a panic, and the problem gets worse, and next thing you know you have meltdown.

So to avoid this problem the ECB temporarily created extra money, which gave the banks that needed it enough liquidity that they could deal with things whilst establishing what their situation actually was and restructuring their finances.

It's like if you had a debt collector arrive at your door in the morning demanding 2 grand or he'd break your kneecaps. If you don't have the cash and he won't take anything else then you're going to be crippled... but if I've got the cash available then I could lend it to you (with your car as collateral), you could then take your car to the dealer the same day, sell it, and repay me the next morning. The debt collector gets his money and you keep your kneecaps, all thanks to me giving you a loan to increase your liquidity at that point in time.
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