MAKING OIL - Spanish scientists search for fuel of the future

[hondaboot]

you don't even know what insider info is

"studying the trends and graphs for forecasting / trending" is insider info?

how can that be insider info when everyone has access to graphs?

not everyone is privy to information from company sensitive projected earnings and income or new product launchings in the next months to come. but nevertheless, company executives need to submit this to the market in order to have good rating, and therefore their stocks can have more value.

that's is what i call "legal" insider info trading ...

[uls]

OB:

company executives need to submit this to the market in order to have good rating, and therefore their stocks can have more value.

so if company information is made public, it is no longer insider info

kaya nga insider info coz only insiders know about it

what part of INSIDER dont you understand?

[hondaboot]

let's go back a bit

what is gold-backed money?

a bank has gold in its vault and it issues certificates that say the certificates represent X amount of gold. the certificates can be used to buy things with

and the certificates can also be used redeem gold from the bank

oil-backed money? which bank has oil in its vault? show me the bank coz i have USD and i want redeem my oil

hay, nagpe-pretend ka lang ba *uls. c'mon you're better than that and I know you are holding back. bakit ba? tayo-tayo lang naman.

the American Banks are regulated by the Fed. the Fed implements a Fractional reserve program for almost all banks in the US and even credit card banks like Visa and Mastercard. since alam mo na fractional reserve, and how it translates to somehow a pyramiding scheme system.

where does the Fed gets its money to loan to banks? although it is independent of the US govt, we can safely say that the Fed also takes care of the US treasury and henceforth, treasury bills, bonds and notes.

now let's apply the fractional reserve system to the Fed itself, if middle east govt. contribute a portion of oil sales to the US Treasury (as was the agreement since the 1930's), let's say the world bought a total of 88 Million barrels of oil today (as u said in ur example), 88M x $105 = that's $ 9.24B for today lang. now let's say in the most conversative way, the middle east is required to purchase US treasury bill at 5% of that 9.24B. then translates to $462M going to the US Treasury for today only .

and since the FED itself love the fractional reserve system so much, then that doesn't only $462M new money coming into the US treasyre, but in fact that's only 10% bec. they are required to circulate x9 of that pa, as debt/loanable new money to the financial system tama ba?

and take note for today only lang yan! galing no, and that's why i have deduced that the monetary system today is backed by oil.

[uls]

where does the Fed gets its money to loan to banks? although it is independent of the US govt, we can safely say that the Fed also takes care of the US treasury and henceforth, treasury bills, bonds and notes.

the Fed creates money from nothing. they type digits on a keyboard to credit somebody's account. that's it

now let's apply the fractional reserve system to the Fed itself, if middle east govt. contribute a portion of oil sales to the US Treasury (as was the agreement since the 1930's), let's say the world bought a total of 88 Million barrels of oil today (as u said in ur example), 88M x $105 = that's $ 9.24B for today lang. now let's say in the most conversative way, the middle east is required to purchase US treasury bill at 5% of that 9.24B. then translates to $462M going to the US Treasury for today only .

it's like this -- oil producers sell oil, earn dollars. they don't spend all their dollars. they save a lot of it and invest it in US treasuries

but oil producers are not the biggest holder of US treasuries. China and Japan hold more US treasuries than oil producers

http://www.treasury.gov/resource-cen...uments/mfh.txt

actually the biggest holder of US treasuries is now the Fed. with QE2, the Fed now holds over $1.3T of US treasuries. that's more than China

http://www.federalreserve.gov/releases/h41/current/

and since the FED itself love the fractional reserve system so much, then that doesn't only $462M new money coming into the US treasyre, but in fact that's only 10% bec. they are required to circulate x9 of that pa, as debt/loanable new money to the financial system tama ba?

it is the banks that lend out money -- to the US govt, businesses, consumers. Not the Fed

the Fed does not lend directly to the US govt (or buy US treasuries directly from the Treasury). the Fed isnt allowed to do that. instead, the Fed buys US treasuries from primary dealers (the big banks). the primary dealers buy treasuries at Treasury auctions then sell them to the Fed (that's what QE is all about)

when the banks sell treasuries (or other assets like mortgage bonds) to the Fed, the Fed credits the banks' accounts at the Fed --> bank reserves

here's the banks' excess reserves (reserves above minimum required):



as you can see, the banks aren't lending out the money

so fractional reserve lending isnt really working now is it?

coz there's very low loan demand. and very few creditworthy borrowers

all your talk about oil-backed money is so freaking far out i don't even know where to start my argument