The downside to deflation in a debt-based monetary system?

[Roy L]

Do not make another post unless you can prove your crackpot theory of banking by using the monopoly set.

Your monopoly set idea does not accurately simulate modern banking or money, sorry.

[Roy L]

No sir that is not at all how it works.

Yes, it is.

The bank for any loan must withdraw the money from its own cash account - which it holds from the deposits of the customer cash accounts (among other sources, such as share capital etc.)

That is how it works for a merchant bank or investment bank. It is not how it works for commercial banks under the debt money system.

No bank in the world merely types digits into someone's account to make a loan!

See "Modern Money Mechanics" published by the US Federal Reserve.

You, too, are totally confused by digits in a computer vs. paper.

They are quite different. Obviously.

No, it is NOT MONEY and it is ACCOUNT ENTRIES!

As the contents of demand deposit accounts are generally accepted in exchange, they are by definition money.

I will suggest that you do not understand the banking industry.

As they say in Japan, "It's mirror time!"

[Roy L]

Wealth for "nothing"... eek!

If you look at the immense wealth banksters pocket, what have they produced of commensurate value in return?

Get out the monopoly set and show me where this money creation happens.

You can't simulate bank creation of debt money with a Monopoly set.

Of course this is a fiat money system!

No, it is not.

Money is manufactured on demand without physical restraint.

But it is created as debt, not currency.

Banks do not create money.

See "Modern Money Mechanics," published by the US Federal Reserve.

They lend depositor's money,

No, customer deposits are used as reserves, against which to create debt money.

and they do need borrowers because that is how a bank normally makes its money.

By creating debt money on which to charge interest. Right.

Because they are scared to death you won't be able to pay it back.

OK, so you agree you were wrong. Good.

Fannie is doing no such thing.

"The Federal National Mortgage Association (Fannie Mae) is the nation’s largest mortgage buyer"

http://topics.nytimes.com/top/news/b...mae/index.html

[Black Flag]

Your monopoly set idea does not accurately simulate modern banking or money, sorry.

Yes it does

[Black Flag]

Roy, You are a crackpot

[Black Flag]

By creating debt money on which to charge interest. Right.

There is no such thing as debt money.

There is money.

[Black Flag]

Money is by definition what is generally accepted in exchange. As demand deposit contents are generally accepted in exchange, they are money.

No.

We do not price things based your promise to pay.

We price things in terms of money

You are ignorant in being unable to differentiate between a debt instrument like a IOU or a Promissory Note and money

[Black Flag]

Mises’s definitions of money - the most marketable commodity

and credit -the exchange of present goods for hoped-for future goods.

[Roy L]

No.

Yes.

We do not price things based your promise to pay.

Ignoratio elenchi fallacy.

We price things in terms of money

Including demand deposits, which are denominated in AND CONTAIN money.

You are ignorant in being unable to differentiate between a debt instrument like a IOU or a Promissory Note and money

No, Captain Ignorance, it is YOU who are unable to distinguish between a promissory note or IOU, neither of which is generally accepted in exchange, and a demand deposit, which is.

[Roy L]

Mises’s definitions of money - the most marketable commodity

That's fine for commodity money, like gold, cattle or cowrie shells, but not for fiat money or debt money.