Tuesday, July 24, 2012

China Peer to Peer Lending

Read more at http://www.nakedcapitalism.com/2012/07/links-72412.html#v6VTxgzZYdICmywg.99

This is lending 100% real money in possession of the lender, at least as real as money gets in a debt money system. This is not fractional reserve lending where money is created by a bank to make a loan. The lender may have sole ownership of the money loaned, may share honest ownership with investors or maybe has possession as a ponzi scheme.
In any case, real money is being made lending real 100% money that exists as a thing prior to loan and continues to exist after the loan is repaid. Only the possession of the the real money for exclusive use changes during the life cycle of the loan.
If this guy is happy to make some money lending “real” money then why can’t we have a real money token system instead of debt money at the macro money finance level?
Loans (debt) are simply an application of what money is in a real money system not the reason for the existence of money and what money is in a debt money system.
China might be the first nation to go to a real money system. They get there through a continuing trend that increases the reserve lending ratio until it is 100% reducing debt money to zero. Where is China now? 20% reserve ratio for the People’s bank? What country has a higher reserve ratio? Their trend? Where are we? For all intents and purposes are we at 0% reserve? Our trend is away from even a resemblence of a real money system with any facade called real base money. Real money that is not debt money.
The only real money we have left is small change.
What will be the world’s next reserve currency system? 100% real money for the whole world? Who will do it first for the world to follow?
Who are the clever ones?

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