coins-225x300

Banks need no money to lend you money

by with No Comment Behind the NewsDisastersEconomics

I went to my bank to get some money to by my new car the other day. I needed $4000. They told me that officially I needed to give 24 hours notice for cash withdrawl over $2,000 however they had enough today so they could give me my $4000. Now my bank is probably a bit smaller than ANZ but I found this quite startling. It got me wondering about how much money banks have in reserve.

A note about Reserve banking . Banks don't need $100
dollars to lend you $100.The US has a requirement that
the banks have to at least own equity worth 10% of the
total loans outstanding. So if Citibank only actually
owned $10 then the sum of all the loans they could
make could not exceed $100.

So I did a little investigation and what I found (with a quick look on wikipedia) concearned me somewhat. I knew that the US had a 10% requirement I didn’t know though that the UK and Australia does not require any reserve requirement whatsoever. So they can make money loaning money they don’t have. I wish I could do that. A tabe showing the reserve requirements by country can be found here wikipedia.

australia

Australia to Double Population

by with No Comment Behind the NewsDisastersEconomicsMathsPermaculture & GardenPersonal

Politicians (both labour and opposition) have been talking about immigration policies that would see the Australian population to almost double from 22 to 36million by 2050. Australia currently has the fastest growing population in the world.

The Australian citizens have never been asked about this.

Yesterday I watched a video from Dick Smith that basically debunked most of the widely used reasons for a “Large Australia”. He is campaigning to have the politicians actually consult the the people about the population strategy and come up with a sensible plan.

Intro Video

Long Video


“Dick Smith is one of Australia’s most recognised individuals. After a successful business career in retailing and publishing, Dick has become well known as a restless adventurer, making many pioneering and record breaking flights by helicopter, aeroplane and balloon.” More info and complete text on Dick Smiths full website here.

World Growth
Dick also broaches the subject of world population growth and the predicted increase in population from 6.7 to just over 9 billion by 2050. World food production over the last 9 years has remained flat and is looking likely to decrease as more soil becomes infertile. Concern about food availability in the future is one of the drivers that got me interested in permaculture. To see more about me and permaculture go to my permaculture page.

reserve

Who Owns the Australian Federal Reserve

by with No Comment Economics

Now its out there in public that the Federal Reserve in the US is a private bank. (If this is news to you then you may want to have a look here from Senatar Ron Paul). I decided that I wanted to investigate as to what the status of the Federal Reserve in Australia is.

I came accross this it explains things in more detail – including the Federal Reserve in the US.

Did you know the Federal Reserve in the US is the 6th central bank that they had – the others were removed by the US government of the time. Hmm…

here it is the money masters

hyperinflation

Hyperinflation in the US its likelihood and worldwide impacts

by with No Comment Economics

This post was first in my other blog http://fatcatsfinance.blogspot.com/ I don’t normally copy contents over but I thought it a mention here.

It’s a bit depressing but more people are now talking about the US and it’s likelyhood for having huge inflation.

Ron Paul (video above) is my favourite US politition (I only really like him and Ralph Nadar). He serves on the House Financial Services Committee, the International Relations committee, and the Joint Economic Committee and on the Financial Services Committee, Rep. Paul serves as the vice-chairman of the Oversight and Investigations subcommittee.

There is another interesting article about the fed here all in all the more I understand about the subject the bleaker it looks.

As part of my investment startegy and as a hedge against hyperinflation I am looking into how I buy land with some of my superannuation. I will let you know how I get on
australia

Facts about Australia

by with No Comment Behind the NewsEconomics

After my Mum and Dad visiting Australia I thought I should put to task a big misconception about Australia being a dry and large dessert. It is true there are large amounts of dessert but there is also alot of arable land here too.

Australia is ranked #7 in the world with the number of cultivated land by country. The whole world 17,000 sq kilometers of cultivated land which is 11.61% of all land


1 US
2 India
3 China
4 Russia
5 Brasilland use by country from wikipeadia
6 Canada
7 Australia has 471k sq Kilometers which is 6% of total area


land use by country  wikipeadia

In fact Australia is a breadbasket here is a link to all the produce from the country

Australia is the world #1 provider of wool and lupins source produces more hops and barley than the UK