How the rich got rich and stayed rich without lifting a finger.

[Ozziecoin]

http://ozziecoin.com/index.php/fractional-reserve-banking-explained

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[lyth0s]

I like your article and I think that most of us around these forums understand the problems with fractional reserve banking, however if someone else is interested in your coin I think that's a good place to start to understand the problem with centralized banking.

Here is a major problem that exists....Most of these alternative coins that are pre-mined or are centralized are now regarded as complete scam coins that are/were made in order to make the creator of the coin rich. I'd suggest tearing down your current coin infrastructure and re-building ozziecoin as a true altcoin that is not pre-mined or centralized. If you promote it well and continue to develop the coin and its public relations you will be well off anyways (as long as you have an early investment in it yourself).

Do the cryptocurrency community a favor and help put an end to these pre-mined/centralized coin scams.

[Ozziecoin]

The fact is when I walk around in a shopping centre, I see hundreds if not thousands of people who have zero interest in mining.  Why should miners have the total benefit of newly minted coins?

It's true there is a huge element of trust in the person holding the pre-allocated coins, that's why we will have a transparent, independent system of checking that all the pre-allocated coins have been given out fairly.

I want the distribution of cryptocurrency to the majority of Australians to happen within my lifetime.

BTW, I did not post here to get more miners to mine my coin.  I posted the info here to provide a simple effective explanation of what is happening to the economies of developed nations.

The gini coefficient is getting worse and will continue to deteriorate for as long as fractional reserve banking exists.

If you are an Aussie, get behind this effort and claim your ozziecoins: http://ozziecoin.com/index.php/distribution/distribution-zone.

Then give some out to your non mining mates, who have no idea what bitcoin is.  Just email them some ozziecoins.  Easy as. They will learn about crypto with ozziecoin then graduate to the big leagues of investing in bitcoin.  

Bitscan article on ozziecoins here: http://bitscan.com/articles/exclusive-the-new-digital-coin-sent-via-email

[Ozziecoin]

Please note this coin has zero value.  We have not listed on any crypto exchange because we are not interested in pumping and dumping.  

Ozziecoin is the "training wheels" for normal, everyday Aussies who want to learn about cryptos without dealing with all the complexities of wallets, mining, and bitcoin addresses.

It costs zero money to claim Ozziecoins right now.

[greenlion]

This article has conclusions that someone already friendly to these ideas would accept, but completely leaving out all the details about the mechanics of how fractional reserve banking actually works and just asking the reader to accept bullet point #2 without any of the details that happened since 1 is not going to convince anybody outside the choir itself to believe anything.

[bitcoinboy163]

this world is a rich men's world,not our poor guys.

[NXTplayer]

the rich get richer and the poor get poorer,this is what happening everyday.

[Ozziecoin]

I am a big believer of meritocracy not aristocracy.  We need to get the Blockchain to the community asap.  And we also need to start explaining, in simple terms, why in rich countries like Australia there are so many poor people. 

The wealth gap is unsustainable but there is a real solution: insist on being paid with sound money. 

End fractional reserve banking.

Martin Wolf:

"Printing counterfeit banknotes is illegal, but creating private money is not. The interdependence between the state and the businesses that can do this is the source of much of the instability of our economies. It could – and should – be terminated."

http://www.ft.com/intl/cms/s/0/7f000b18-ca44-11e3-bb92-00144feabdc0.html#axzz31KH3P0mX

[Ozziecoin]

This article has conclusions that someone already friendly to these ideas would accept, but completely leaving out all the details about the mechanics of how fractional reserve banking actually works and just asking the reader to accept bullet point #2 without any of the details that happened since 1 is not going to convince anybody outside the choir itself to believe anything.

No mate, you're incorrect on this.  The choir now includes the heads of many central banks:

https://en.wikipedia.org/wiki/Fractional_reserve_banking

Sir Mervyn King, former Governor of the Bank of England said "Textbooks assume that money is exogenous"... "In the United Kingdom, money is endogenous"[27]

Glenn Stevens, governor of the Reserve Bank of Australia, said of the "money multiplier", "most practitioners find it to be a pretty unsatisfactory description of how the monetary and credit system actually works."[28]

Lord Adair Turner, formally the UK's chief financial regulator, said "Banks do not, as too many textbooks still suggest, take deposits of existing money from savers and lend it out to borrowers: they create credit and money ex nihilo – extending a loan to the borrower and simultaneously crediting the borrower’s money account".[29]

McLeay et al. said in the Bank of England Quarterly Bulletin: "This description of the relationship between monetary policy and money differs from the description in many introductory textbooks, where central banks determine the quantity of broad money via a ‘money multiplier’ by actively varying the quantity of reserves."[30]

Former Deputy Governor of the Bank of Canada William White said "Some decades ago, the academic literature would have emphasised the importance of the reserves supplied by the central bank to the banking system, and the implications (via the money multiplier) for the growth of money and credit. Today, it is more broadly understood that no industrial country conducts policy in this way under normal circumstances." [31]


The system has broken down on two levels:

1. The reserve requirement of 10% means that banks can lend out 90% of existing money, which doesn't belong to them.  As multiple rounds of such lending happens within a 12 month period, money is effectively multiplied in the economy.

2. The existence of securitisation and shadow banking has effectively reduced reserve requirements to much less than 10%.  It is probably less than 2.5% once shadow banking is taken into account.

The system is now effectively creating money completely out of thin air.  https://ozziecoin.com/wp-content/uploads/2014/04/The-Bank-of-England-explains-how-commercial-banks-create-mon.mp4

[Robert Paulson]

https://www.youtube.com/watch?v=iFDe5kUUyT0
best explains the scam of a system we have today

[greenlion]

This article has conclusions that someone already friendly to these ideas would accept, but completely leaving out all the details about the mechanics of how fractional reserve banking actually works and just asking the reader to accept bullet point #2 without any of the details that happened since 1 is not going to convince anybody outside the choir itself to believe anything.

No mate, you're incorrect on this.  The choir now includes the heads of many central banks:

https://en.wikipedia.org/wiki/Fractional_reserve_banking

Sir Mervyn King, former Governor of the Bank of England said "Textbooks assume that money is exogenous"... "In the United Kingdom, money is endogenous"[27]

Glenn Stevens, governor of the Reserve Bank of Australia, said of the "money multiplier", "most practitioners find it to be a pretty unsatisfactory description of how the monetary and credit system actually works."[28]

Lord Adair Turner, formally the UK's chief financial regulator, said "Banks do not, as too many textbooks still suggest, take deposits of existing money from savers and lend it out to borrowers: they create credit and money ex nihilo – extending a loan to the borrower and simultaneously crediting the borrower’s money account".[29]

McLeay et al. said in the Bank of England Quarterly Bulletin: "This description of the relationship between monetary policy and money differs from the description in many introductory textbooks, where central banks determine the quantity of broad money via a ‘money multiplier’ by actively varying the quantity of reserves."[30]

Former Deputy Governor of the Bank of Canada William White said "Some decades ago, the academic literature would have emphasised the importance of the reserves supplied by the central bank to the banking system, and the implications (via the money multiplier) for the growth of money and credit. Today, it is more broadly understood that no industrial country conducts policy in this way under normal circumstances." [31]


The system has broken down on two levels:

1. The reserve requirement of 10% means that banks can lend out 90% of existing money, which doesn't belong to them.  As multiple rounds of such lending happens within a 12 month period, money is effectively multiplied in the economy.

2. The existence of securitisation and shadow banking has effectively reduced reserve requirements to much less than 10%.  It is probably less than 2.5% once shadow banking is taken into account.

The system is now effectively creating money completely out of thin air.  https://ozziecoin.com/wp-content/uploads/2014/04/The-Bank-of-England-explains-how-commercial-banks-create-mon.mp4

Put this supporting information in your article at least in some simplified form, because I'm not wrong, your article doesn't explain anything. It sets up a thought experiment about somebody depositing money, then another taking a loan, and boom, you're just saying the bank creates money out of thin air without any explanation. That's basically useless and makes these completely true conclusions look crazy.

[Ozziecoin]

Put this supporting information in your article at least in some simplified form, because I'm not wrong, your article doesn't explain anything. It sets up a thought experiment about somebody depositing money, then another taking a loan, and boom, you're just saying the bank creates money out of thin air without any explanation. That's basically useless and makes these completely true conclusions look crazy.

I will link to the supporting articles I have posted here.  The banks are creating money out of thin air.  I'm not making that up.  The system IS completely crazy and unfair. You should be pissed about that.  

Most people are not upset about it because they don't know their money has been diluted by inflation and fast rising property prices.  

We should all do our bit to ensure that everyone understands that Fractional Reserve Banking (including shadow banking) must be terminated.  

[sana8410]

https://www.youtube.com/watch?v=iFDe5kUUyT0
best explains the scam of a system we have today

Imagine borrowing more money from the person that you already owe, just to put a little dent in the interest that will inevitably compound. That's the surest way to go bankrupt, but our government can somehow sustain & never go under???  The US government spends 3 to 4 times more than they earn annually. Wish I could get away with that!

[lyth0s]

Please note this coin has zero value.  We have not listed on any crypto exchange because we are not interested in pumping and dumping.  

Ozziecoin is the "training wheels" for normal, everyday Aussies who want to learn about cryptos without dealing with all the complexities of wallets, mining, and bitcoin addresses.

It costs zero money to claim Ozziecoins right now.

From your website "Ozziecoin intends to list on a cryptoexchange within 3 to 6 months, which will give ozziecoins a fair market value." http://ozziecoin.com/ homepage. You and I both know you will have quite a few pre-mined ozziecoins to cash in for bitcoins when that day comes

[Ozziecoin]

Please note this coin has zero value.  We have not listed on any crypto exchange because we are not interested in pumping and dumping.  

Ozziecoin is the "training wheels" for normal, everyday Aussies who want to learn about cryptos without dealing with all the complexities of wallets, mining, and bitcoin addresses.

It costs zero money to claim Ozziecoins right now.

From your website "Ozziecoin intends to list on a cryptoexchange within 3 to 6 months, which will give ozziecoins a fair market value." http://ozziecoin.com/ homepage. You and I both know you will have quite a few pre-mined ozziecoins to cash in for bitcoins when that day comes

You're right: The devs will have a grand total of 0.03% of coin supply that was pre-allocated for the dev team.  Compared to other similar altcoins, we are okay with that.  We put in the time, work and the money to get the Blockchain out to the Australian community.  That is our primary objective and we're going to be transparent on that entire process.

Aussies, we encourage you to mine some ozziecoins and simply email this coin to your non-crypto aware mates, so they learn something about the blockchain and how coins work.  

International people can mine this coin also and register (https://ozziecoin.com/faucet/register.php) to send ozziecoins to their mates in Australia and around the world also.

It's a friendly, free way for ordinary aussies to learn about cryptos.  We are absolutely the training wheels for people wanting to learn about cryptos and do not want to shell out $500 for a bitcoin.

URL for emailing out ozziecoins: https://ozziecoin.com/faucet/default.php (visit with web or mobile device)

Article about ozziecoins in bitscan: http://bitscan.com/articles/exclusive-the-new-digital-coin-sent-via-email

[umair127]

The reason why this happens is because the rich stay within a network to help each other out, like my freinds boss was a dentist owner and his freind sold dental supplies so they worked hand to hand to keep getting rich while the other comeptitors cant compete cause everyone helps each other within there network.  I hope that makes sense.

[twiifm]

Nobody gets rich without lifting a finger except lottery winners.

Banks take on a lot of risk to give loans.  If the lender doesn't pay the banks can go insolvent

[lyth0s]

Nobody gets rich without lifting a finger except lottery winners.

Banks take on a lot of risk to give loans.  If the lender doesn't pay the banks can go insolvent

The bank itself may become insolvent, but the rich people running it maintain their wealth. Ozziecoin's article is fine IMO. My only problem is with pre-mining and the very real possibility of taking the "coins for aussies" and selling for personal gain.

[theonewhowaskazu]

Fractional Reserve Banking naturally exists, and unless it is outright banned (which would be a violation of freedom) it always will exist. Ironically, most debt is based off of banking, and without debt, you have huge currency volatility. Debt ensures future demand which actually stabilizes a currency.

The problem is with US FRACTIONAL RESERVE BANKING which is where money created with through the fractional reserve process is identical to "normal" money, due to a combination of the FDIC and the FED, especially when the FED gets its instructions from the government and from a coallition of big banks, guaranteeing it will lend to both almost infinitely.

[Ozziecoin]

Nobody gets rich without lifting a finger except lottery winners.

Banks take on a lot of risk to give loans.  If the lender doesn't pay the banks can go insolvent

Mate: TBTF - it's still there.  http://www.zerohedge.com/news/2014-05-09/tim-geithner-admits-too-big-fail-hasnt-gone-anywhere-and-thats-way-he-likes-it