Before government borrowings:

Total stock market valuation = $1,000,000,000,000

After, etc.:

Total govt. borrowings = $1,000,000,000,000
Total stock market valuation = $2,000,000,000,000

Have the economists forgot something?

Stray Dog wrote:


On Tue, 25 Nov 2008, Rich Uncle wrote:

Date: Tue, 25 Nov 2008 04:07:18 -0800 (PST)
From: Rich Uncle <milburnpennybags@gmail.com
Newsgroups: sci.econ, misc.invest.stocks
Subject: Govt. debt - A burden on future ...?

Before government borrowings:

Total stock market valuation = $1,000,000,000,000

After, etc.:

Total govt. borrowings = $1,000,000,000,000
Total stock market valuation = $2,000,000,000,000

Have the economists forgot something?


I've got a better thought and it does not even involve the govt.

You go to your bank with $100 and open an account (give them 100 one
dollar bills and they give you a piece of paper saying "on deposit,
$100"), and you tell everyone around you that you have $100.

Now, the next day (you can find this in _any_ book on banking, and
your banker will even tell you, straight faced and without a lie or
misleading response), in accordance with fractional reserve banking
which has been around for 500 years (read banking history), the bank
holds back $5 for reserve, and loans out the other 95 one dollar bills
of your deposit.

So, now, "society" (you, the bank, and the borrower) has $195 in
assets (your $100 deposit, the $5 left in the bank, and $95 sent back
out into the second person for anything he wants money for.

How do you like that?


Now, another example (does not involve the govt, either):

Corporation needs to expand. Prints pieces of paper with the word
"Share" on top, and sells to you for $X per share. They take the money
and build expansion. You don't own anything but the piece of paper;
you can't go down to the expansion and give them that "Share" and, for
example, take a window or file cabinet.

So, they got your money and expansion for "free" (their assets now
"number of shares multiplied by dollars per share, converted into a
factory PLUS
your number of shares multiplied by dollars you paid per share, so
assets now double before you bought the shares and before they built
the expansion).

Pure magic.

How do you like that????


Just thought that "money does not breed", but now it seems it does ..

Han de Bruijn

Date: Tue, 25 Nov 2008 04:07:18 -0800 (PST)
From: Rich Uncle <milburnpennybags@gmail.com
Newsgroups: sci.econ, misc.invest.stocks
Subject: Govt. debt - A burden on future ...?

Before government borrowings:

Total stock market valuation = $1,000,000,000,000

After, etc.:

Total govt. borrowings = $1,000,000,000,000
Total stock market valuation = $2,000,000,000,000

Have the economists forgot something?

On Tue, 25 Nov 2008, Rich Uncle wrote:

Date: Tue, 25 Nov 2008 04:07:18 -0800 (PST)
From: Rich Uncle <milburnpennybags@gmail.com
Newsgroups: sci.econ, misc.invest.stocks
Subject: Govt. debt - A burden on future ...?

Before government borrowings:

Total stock market valuation = $1,000,000,000,000

After, etc.:

Total govt. borrowings = $1,000,000,000,000
Total stock market valuation = $2,000,000,000,000

Have the economists forgot something?


I've got a better thought and it does not even involve the govt.

You go to your bank with $100 and open an account (give them 100 one
dollar bills and they give you a piece of paper saying "on deposit,
$100"), and you tell everyone around you that you have $100.

Now, the next day (you can find this in _any_ book on banking, and your
banker will even tell you, straight faced and without a lie or
misleading response), in accordance with fractional reserve banking
which has been around for 500 years (read banking history), the bank
holds back $5 for reserve, and loans out the other 95 one dollar bills
of your deposit.

So, now, "society" (you, the bank, and the borrower) has $195 in assets
(your $100 deposit, the $5 left in the bank, and $95 sent back out into
the second person for anything he wants money for.

How do you like that?


Now, another example (does not involve the govt, either):

Corporation needs to expand. Prints pieces of paper with the word
"Share" on top, and sells to you for $X per share. They take the money
and build expansion. You don't own anything but the piece of paper; you
can't go down to the expansion and give them that "Share" and, for
example, take a window or file cabinet.

So, they got your money and expansion for "free" (their assets now
"number of shares multiplied by dollars per share, converted into a
factory PLUS
your number of shares multiplied by dollars you paid per share, so
assets now double before you bought the shares and before they built the
expansion).

Pure magic.

How do you like that????

Date: Tue, 25 Nov 2008 08:56:58 -0500
From: Mark M. <mark@ztech.com
Newsgroups: sci.econ, misc.invest.stocks
Subject: Re: Govt. debt - A burden on future ...?

Han de Bruijn wrote:
Stray Dog wrote:


On Tue, 25 Nov 2008, Rich Uncle wrote:

Date: Tue, 25 Nov 2008 04:07:18 -0800 (PST)
From: Rich Uncle <milburnpennybags@gmail.com
Newsgroups: sci.econ, misc.invest.stocks
Subject: Govt. debt - A burden on future ...?

Before government borrowings:

Total stock market valuation = $1,000,000,000,000

After, etc.:

Total govt. borrowings = $1,000,000,000,000
Total stock market valuation = $2,000,000,000,000

Have the economists forgot something?


I've got a better thought and it does not even involve the govt.

You go to your bank with $100 and open an account (give them 100 one
dollar bills and they give you a piece of paper saying "on deposit,
$100"), and you tell everyone around you that you have $100.

Now, the next day (you can find this in _any_ book on banking, and your
banker will even tell you, straight faced and without a lie or misleading
response), in accordance with fractional reserve banking which has been
around for 500 years (read banking history), the bank holds back $5 for
reserve, and loans out the other 95 one dollar bills of your deposit.

What the bank actually does is keep your $100 as reserve and loan out $1000
that they create from nothing.

Mark M.

So, now, "society" (you, the bank, and the borrower) has $195 in assets
(your $100 deposit, the $5 left in the bank, and $95 sent back out into
the second person for anything he wants money for.

How do you like that?


Now, another example (does not involve the govt, either):

Corporation needs to expand. Prints pieces of paper with the word "Share"
on top, and sells to you for $X per share. They take the money and build
expansion. You don't own anything but the piece of paper; you can't go
down to the expansion and give them that "Share" and, for example, take a
window or file cabinet.

So, they got your money and expansion for "free" (their assets now "number
of shares multiplied by dollars per share, converted into a factory PLUS
your number of shares multiplied by dollars you paid per share, so assets
now double before you bought the shares and before they built the
expansion).

Pure magic.

How do you like that????


Just thought that "money does not breed", but now it seems it does ..

Han de Bruijn

Date: Tue, 25 Nov 2008 15:42:40 +0100
From: Han de Bruijn <Han.deBruijn@DTO.TUDelft.NL
Newsgroups: sci.econ, misc.invest.stocks
Subject: Re: Govt. debt - A burden on future ...?

Stray Dog wrote:

On Tue, 25 Nov 2008, Rich Uncle wrote:

Date: Tue, 25 Nov 2008 04:07:18 -0800 (PST)
From: Rich Uncle <milburnpennybags@gmail.com
Newsgroups: sci.econ, misc.invest.stocks
Subject: Govt. debt - A burden on future ...?

Before government borrowings:

Total stock market valuation = $1,000,000,000,000

After, etc.:

Total govt. borrowings = $1,000,000,000,000
Total stock market valuation = $2,000,000,000,000

Have the economists forgot something?


I've got a better thought and it does not even involve the govt.

You go to your bank with $100 and open an account (give them 100 one dollar
bills and they give you a piece of paper saying "on deposit, $100"), and
you tell everyone around you that you have $100.

Now, the next day (you can find this in _any_ book on banking, and your
banker will even tell you, straight faced and without a lie or misleading
response), in accordance with fractional reserve banking which has been
around for 500 years (read banking history), the bank holds back $5 for
reserve, and loans out the other 95 one dollar bills of your deposit.

So, now, "society" (you, the bank, and the borrower) has $195 in assets
(your $100 deposit, the $5 left in the bank, and $95 sent back out into the
second person for anything he wants money for.

How do you like that?


Now, another example (does not involve the govt, either):

Corporation needs to expand. Prints pieces of paper with the word "Share"
on top, and sells to you for $X per share. They take the money and build
expansion. You don't own anything but the piece of paper; you can't go down
to the expansion and give them that "Share" and, for example, take a window
or file cabinet.

So, they got your money and expansion for "free" (their assets now "number
of shares multiplied by dollars per share, converted into a factory PLUS
your number of shares multiplied by dollars you paid per share, so assets
now double before you bought the shares and before they built the
expansion).

Pure magic.

How do you like that????

Just thought that "money does not breed", but now it seems it does ..

Han de Bruijn

On Tue, 25 Nov 2008, Han de Bruijn wrote:

Date: Tue, 25 Nov 2008 15:42:40 +0100
From: Han de Bruijn <Han.deBruijn@DTO.TUDelft.NL
Newsgroups: sci.econ, misc.invest.stocks
Subject: Re: Govt. debt - A burden on future ...?

Stray Dog wrote:


On Tue, 25 Nov 2008, Rich Uncle wrote:

Date: Tue, 25 Nov 2008 04:07:18 -0800 (PST)
From: Rich Uncle <milburnpennybags@gmail.com
Newsgroups: sci.econ, misc.invest.stocks
Subject: Govt. debt - A burden on future ...?

Before government borrowings:

Total stock market valuation = $1,000,000,000,000

After, etc.:

Total govt. borrowings = $1,000,000,000,000
Total stock market valuation = $2,000,000,000,000

Have the economists forgot something?


I've got a better thought and it does not even involve the govt.

You go to your bank with $100 and open an account (give them 100 one
dollar bills and they give you a piece of paper saying "on deposit,
$100"), and you tell everyone around you that you have $100.

Now, the next day (you can find this in _any_ book on banking, and
your banker will even tell you, straight faced and without a lie or
misleading response), in accordance with fractional reserve banking
which has been around for 500 years (read banking history), the bank
holds back $5 for reserve, and loans out the other 95 one dollar
bills of your deposit.

So, now, "society" (you, the bank, and the borrower) has $195 in
assets (your $100 deposit, the $5 left in the bank, and $95 sent back
out into the second person for anything he wants money for.

How do you like that?


Now, another example (does not involve the govt, either):

Corporation needs to expand. Prints pieces of paper with the word
"Share" on top, and sells to you for $X per share. They take the
money and build expansion. You don't own anything but the piece of
paper; you can't go down to the expansion and give them that "Share"
and, for example, take a window or file cabinet.

So, they got your money and expansion for "free" (their assets now
"number of shares multiplied by dollars per share, converted into a
factory PLUS
your number of shares multiplied by dollars you paid per share, so
assets now double before you bought the shares and before they built
the expansion).

Pure magic.

How do you like that????


Just thought that "money does not breed", but now it seems it does ..

Han de Bruijn


I've got one more: See how Enron/Andersen made a lot of money---

Set up a two spreadsheets on your computer and call one "Enron" and call
the other one "Special Purpose Entity" and from SPE you order product
from E, then E shows accounts receivable, and then spend money from E,
then sell the debt to SPE. SPE looks like hell after a few months but
you sweep it under the rug (with Arthur Andersen) where "document
retention policy" makes the dirt evaporate, and the E spreadsheet looks
like heaven on earth.

If you read the WSJ articles that came out when Enron went down in
flames, they actually had graphic schematic diagrams showing how this
worked, complete with arrows and boxes, going back and forth, and forth
and back, and lots of magic came out.

But, now, there is a whole lot of kids, in the next generation, that are
not learning the evil of this. Instead, they want to try it themselves
only don't get caught.