What the NZ Reserve Bank wants you to know about the banking crisis. Nothing!

What the NZ Reserve Bank wants you to know about the banking crisis. Nothing!


Here is the reality. Nothing is backed up by anything except fiat “money”

There was some excellent commentary yesterday that I recommend.

They revealed that  total amount of money in circulation  in the USA IS $20 TRILLION

The total amount of physical money in circulation is 53 BILLION

I did the calculations and that represents 2.65% of all the money in circulation

More money has been created in the last 3 years than during the entire US history

Before Nixon got rid of the gold standard that figure would have been 100%

The comparative figure for New Zealand is $1.6 thousand million cash in circulation against $254,000 million. That means that cash in New Zealand represents 6.4% of all money in circulation.

From this it is easy to see why the banks don’t want people withdrawing cash, in general and in this situation in particular. The banks simply do not have enough to cover it.

Essentially, they have already created a cashless society.

In addition, under fractional reserve banking rules the banks traditionally needed to keep 10% of money in reserve to pay out to depositors.

The rest could be created out of thin air.

However this has changed in the covid era:

As of March 2020, the reserve requirement for all deposit institutions was set to 0% of eligible deposits. The Board previously set a zero reserve requirement for banks with eligible deposits up to $16 million, 3% for banks up to $122.3 million, and 10% thereafter. The removal of reserve requirements followed the Federal Reserve’s shift to an “ample-reserves” system, in which the Federal Reserve Banks pay member banks interest on excess reserves held by them….

Canada, the UK, New Zealand, Australia, Sweden and Hong Kong have no reserve requirements


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