Question For Financial Gurus

[seafoid]

Yes, also the Bond Markets

Pension funds lend money to the government via their purchases of government bonds. They get regular annual interest payments and usually their money back after a certain time.
The money paid to buy the bonds is real since it comes from pension contributions.

[muppet]

Yes, also the Bond Markets

Pension funds lend money to the government via their purchases of government bonds. They get regular annual interest payments and usually their money back after a certain time.
The money paid to buy the bonds is real since it comes from pension contributions.

But if the pension contributors have earned it from, say a property boom based on lending from Fractional Rerserve banks, how real it is then?

[seafoid]

Yes, also the Bond Markets

Pension funds lend money to the government via their purchases of government bonds. They get regular annual interest payments and usually their money back after a certain time.
The money paid to buy the bonds is real since it comes from pension contributions.

But if the pension contributors have earned it from, say a property boom based on lending from Fractional Rerserve banks, how real it is then?

If the farm was sold for cash then it is real I suppose.

[lawnseed]

imagine when someone asks where did all the money go from the celtic tiger years? and the answer is there was no actual money.. and then again the question comes up 'but where did it go?' and the answer is still there was no fukn money. it IS difficult to comprehend that an economy could be based on heresay and promises and cyber money.  makey uppy currency based on the 'promise to pay'. its that 'promise to pay' and indeed the ability to honour that promise that causes the problems in credit la la land. so many of the rules that could prevent credit glitches happening have been bypassed. one glaring example is the need for the lender to actually have money to lend. e.g if i were a bank and you came to me to borrow 2000 and i only have 1500 available according to the old rules i'm supposed to tell you that the bank of lawnseed cannot handle a loan that size. but nowadays the lawnseed bank would just say 2000? no bother and just pull the money out of cyberspace. that is why according to a growing number of 'financial gurus' there is a need to attach currency to something of materail and actual physical mass like gold or silver. these precious metals are a finite resource so when promissory notes are issued IE cash you should in theory  be able to go to the bank of England and say he res my promissory notes for £1000 can i exchange them for £1000 worth of gold from your vault. they in turn should be able to examine your cash where it says "i promise to pay the bearer on demand £1000" and give you the 1000 worth of gold at its market value at that time maybe half an ounce.  this is the only way to stop the continuous devaluation of the pound in your pocket.

[lawnseed]

gold and silver prices plummett. bitcoin crashes nothing is safe any more