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Cable Update (GBPUSD)

  • #753,001
  • Jun 20, 2023 3:19am Jun 20, 2023 3:19am
GU is having a tough time
  • #753,002
  • Jun 20, 2023 3:19am Jun 20, 2023 3:19am
Quoting dantpm
{quote} The statement is misleading. bank loans to individuals don't increase the money supply. Banks have to have liquidity to be able to make loans to individuals. Bank liquidity either comes from deposits or treasury notes held by the bank. It comes back to cash and treasury notes to create money supply.
lol, the Bank of England is telling you banks print money; they DO NOT lend other people money.That's not good enough to change your mind?
On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #753,003
  • Jun 20, 2023 3:22am Jun 20, 2023 3:22am
Quoting dantpm
{quote} The statement is misleading. bank loans to individuals don't increase the money supply. Banks have to have liquidity to be able to make loans to individuals. Bank liquidity either comes from deposits or treasury notes held by the bank. It comes back to cash and treasury notes to create money supply.
Banks print the mortgages and base the loan on the risk of getting it back. The asset, the deposit the person are all factors.
The reserve requirement is 0%, as there is no reserve system, its a myth.
We live in a debt-based system.
On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #753,004
  • Jun 20, 2023 3:22am Jun 20, 2023 3:22am
shorting GBPAUD while waiting cable down..this crazy
pair move 160pips today..
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  • #753,005
  • Jun 20, 2023 3:25am Jun 20, 2023 3:25am
Quoting Bones
{quote} lol, the Bank of England is telling you banks print money; they DO NOT lend other people money.That's not good enough to change your mind?
You appear to be confused as to what banks do. They invest deposits in various financial instruments to be able to earn an income themselves and to pay interest on deposits. Specifically the do just that, lend other people's money!
  • #753,006
  • Jun 20, 2023 3:27am Jun 20, 2023 3:27am
Quoting dantpm
{quote} Higher rates don't dry up the money supply! You have to retire treasury notes, other debt instruments or do something similar.
But it does increase saving, since rewards on saving becomes more attractive.
Folks less likely to spend their money on consumption. Demand pressure reduced.
Money in circulation is reduced.
This whole concept is good to see in book.

In reality, majority of Americans are soo broke, that they have no other choice but to simply use their credit cards to fight inflation(they got no cash in hand)
They are induced to pay higher interest on their overdraft to be able to afford the higher prices for their consumer products.
More time in the market, does not mean you trade better!
  • #753,007
  • Jun 20, 2023 3:29am Jun 20, 2023 3:29am
Quoting Fardeen1209
{quote} But it does increase saving, since rewards on saving becomes more attractive. Folks less likely to spend their money on consumption. Demand pressure reduced. Money in circulation is reduced. This whole concept is good to see in book. In reality, majority of Americans are soo broke, that they have no other choice but to simply use their credit cards to fight inflation(they got no cash in hand) They are induced to pay higher interest on their overdraft to be able to afford the higher prices for their consumer products.
it’s becoming the norm In the UK too. The credit card is how people survive it seems. There is a ticking time bomb
Insane in the Brain..
  • #753,008
  • Jun 20, 2023 3:30am Jun 20, 2023 3:30am
looks like upper bollinger bands m15,30 and m60 are rejecting..interesting if it can back to testing low..and break..starting bearish..lol
  • #753,009
  • Jun 20, 2023 3:32am Jun 20, 2023 3:32am
Quoting Bones
{quote} Banks print the mortgages and base the loan on the risk of getting it back. The asset, the deposit the person are all factors. The reserve requirement is 0%, as there is no reserve system, its a myth. We live in a debt-based system.
Couldn't find anything more recent. All banks have to have deposit reserves to allow them to function as banks. They all have limits on how much they can lend as well. It is simple economics for banking to exist and continue as viable businesses without damaging the economy.
https://www.bankofengland.co.uk/quar...er-definitions
  • #753,010
  • Jun 20, 2023 3:35am Jun 20, 2023 3:35am
Quoting dantpm
{quote} Couldn't find anything more recent. All banks have to have deposit reserves to allow them to function as banks. They all have limits on how much they can lend as well. It is simple economics for banking to exist and continue as viable businesses without damaging the economy. https://www.bankofengland.co.uk/quar...er-definitions
1971 mate
On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #753,011
  • Jun 20, 2023 3:36am Jun 20, 2023 3:36am
Holding since last Friday
This feels great but its demo.
Price went according to my plan.
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Exhausted
  • #753,012
  • Jun 20, 2023 3:37am Jun 20, 2023 3:37am
Quoting Fardeen1209
{quote} But it does increase saving, since rewards on saving becomes more attractive. Folks less likely to spend their money on consumption. Demand pressure reduced. Money in circulation is reduced. This whole concept is good to see in book. In reality, majority of Americans are soo broke, that they have no other choice but to simply use their credit cards to fight inflation(they got no cash in hand) They are induced to pay higher interest on their overdraft to be able to afford the higher prices for their consumer products.
Money in 'criculation' is only reduced by retiring bank notes or retiring treasury notes.
Bank deposits do not reduce money supply.
Americans are encouraged to carry debt as all interest in the US is tax deductible so having large amounts of debt helps you to avoid income tax. Many have too much debt, the problem that you are referring to.
  • #753,013
  • Jun 20, 2023 3:37am Jun 20, 2023 3:37am
there is a limit but its based on risk
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On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #753,014
  • Jun 20, 2023 3:38am Jun 20, 2023 3:38am
Quoting Bones
{quote} 1971 mate
Can't help that they don't appear to have updated their information.
  • #753,015
  • Jun 20, 2023 3:41am Jun 20, 2023 3:41am
the bank reserves net to 0
banks can't spend reserves they pass them to each other.
On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #753,016
  • Jun 20, 2023 3:42am Jun 20, 2023 3:42am
Just went long 2789. TP 2950. Let's go finish that upside business. This is extreme gut feeling trading. No useless charts. Waveskierrob style.
  • #753,017
  • Jun 20, 2023 3:43am Jun 20, 2023 3:43am
Quoting dantpm
{quote} Can't help that they don't appear to have updated their information.
maybe their fax machine is jammed
On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #753,018
  • Jun 20, 2023 3:44am Jun 20, 2023 3:44am
Quoting Bones
there is a limit but its based on risk {image}
Countries and districts without reserve requirements[edit]
Canada, the UK, New Zealand, Australia, Sweden and Hong Kong[14] have no reserve requirements.
This does not mean that banks can—even in theory—create money without limit. On the contrary, banks are constrained by capital requirements, which are arguably more important than reserve requirements even in countries that have reserve requirements.

The reserve requirement is superseded by the capital requirement. Plastic money and currency allow the economies and banks to function. It still doesn't change the basic premise.
  • #753,019
  • Jun 20, 2023 3:46am Jun 20, 2023 3:46am
Still planning to buy this up but might wait until US session - bulls are lurking. But its hard to know who'll win yet
  • #753,020
  • Jun 20, 2023 3:50am Jun 20, 2023 3:50am
Quoting dantpm
{quote} Countries and districts without reserve requirements[edit] Canada, the UK, New Zealand, Australia, Sweden and Hong Kong[14] have no reserve requirements. This does not mean that banks can—even in theory—create money without limit. On the contrary, banks are constrained by capital requirements, which...
They make loans based on the parameters of the loan. If you don't pay the loan, the money is in the asset, and they take that to pay the loan.
Thats why it's pointless to have reserves to cover the loan.
The first thing you need to appreciate is that they print the loan, and the money disappears from circulation when the loan is paid.
An instant asset and liability is printed at the point of the loan—a double ledger system.
If you don't understand basic mechanics, you never understand why all countries use IR to takle inflation.
On-site guru & also FF member's' psychiatrist, when not drinking tea
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