Santa Clarita Living » Banks

Seigniorage, a word unknown

admin — Tue, 28 Apr 2009 17:47:10 +0000

Seigniorage is not a word is explained to us every day.
Around it will create several controversial but often are not taken into account.
I will only give a definition of this term that could be used later, perhaps in my other articles or you can hear it in the future.
The information that I found on this are not many, but investigating a fund you can find several articles and video.
The delivery system of money in the past worked well:
For every dollar paid out they needed a gold reserve to cover the disbursement of this money, because it was not in operation on the course and forced there to be able to change money with the gold going into the bank.
In the 70s, however, Nixon introduced the course forced, as the currency in circulation was too much compared to gold.
Only reason why $ 100 value $ 100 is the fact that we agree to that piece of paper worth $ 100.
Since then every issue of money is covered in part with the gold reserve and partly by issuing state bonds (debt).
But if the notes are why our debt?

Because in truth the banks are not government, but real companies.
They print money and LEND it to the state in exchange for securities (debt).
Then print a sheet from 0.05 cent (for example), but with a value of $ 100, and lend us generating debt.
The payment of this debt the bank will get $ 100 + interest – 0.05 cent.
Warning:
does not mean that all the debt is with the printing of banknotes, because inside there is the debt for public spending.
Understand this mechanism if we make appropriate notes in the portfolio, we can see that the ownership of money is not ours.
Top notes you can find the logo ECB, while on the coins minted by the Mint was not there are signs of the bank.
So here also explains why it is preferred to use up to 2 coins in Euro currency.
If they were printed in the paper would contribute to further increase the public debt.
Warning:
The bank decides monetary policy in relation to the economic policy of the states.
So the issue of banknotes is controlled, but the gain is banking that I have mentioned before.
This gain is called Signoraggio.
As the bank a private credit institution and has generated income is taxed and partly recovered by the state.
If you understand the system you may ask why we do not print?
Good question.
Starting from the history, it seems that since the beginning Roman is the state raised the cost of the printing press by giving to others, but UEL period coins were completely gold, and then for example:
100 coins in gold (20 grams of gold) worth 20 grams of gold that you had in your pocket and for which the value printed was equal to the value given in the system.
Over time, those who printed money have lightened the load of gold in the money and away from the real value and nominal value by separating the real one.
This until you comes to our times, in 1971 when Nixon completely block the exchange U.S. dollars gold.
Now we have discovered why not paintwork us, but why not go back to the old system (as do China and Cuba, which own banks)?
To this, I have not replied.
But we need a little ‘history.
Kennedy in 1964 tried to insert a coin and the state issued an order that allowed him, but unfortunately a few months later he was killed, and the measure was not used more, even if still in force.

The security token generated by

admin — Wed, 08 Apr 2009 17:38:48 +0000

To improve security banking was introduced this device from the name token.
Many of you maybe have him, but do not know how you call.
San Paolo Bank was among the first to adopt it and after the merger with Banca Intesa, but it has adhered to this security system.
Called o-key, its generic name is token.
Generates a unique numeric code used only for access and that is regenerated every time you press the ‘key.
You wondering how you may make a token and server coordinate bank?
It may seem complicated, but in truth is a simple mechanism and hard “crakkabile”.

The generator of passwords does not “talk” with the server of the bank, but also manage to synchronize with a particular algorithm, which generates a numerical key, only to a given time and for a given user.
At the same time the server is running the same process, linking it to the user.
If the code between the server and token are the same: connection made.
I remember that there is no lock information 100% secure.
Must be considered that can be a good reason for discouragement for those who want to try to take possession of our data using procedures hackers.
As always I write: always given much attention to procedures carried out and if you’re not sure.

Forex Market

admin — Sun, 14 Dec 2008 17:44:29 +0000

A market experiencing rapid growth in the financial sector is undoubtedly one of the forex.
The forex is the trading of currencies for speculative purposes is an extremely liquid market, which is active 24 hours on 24 for 6 days a week, which attracts millions of traders from around the world.

To begin negotiations need not be financial guru or authorized agents, the forex is especially
online, thanks to platforms that enable brokers to easily activate the trade.
Obviously you need to know the techniques; we must be able to access and analyze the charts and know all the
terminology of the sector to operate successfully in the forex.

In addition to market currencies, there is a need for basic training on: the site
Forexpertutti.net find all the basics and news on the trends of the currencies and economy, to be slightly out of date.

ING proposes mutual tied to the cost of money

admin — Sun, 12 Oct 2008 16:29:47 +0000

Ing has created a new product for those who need to purchase a home.
The loan will be linked to changes of no more Euribor, but at the cost of money dictated by the ECB.

Since 1 January with the new legislation Tremonti all banks will have to adapt and create a product that is based on this rate.

Unfortunately for the banks, the risk is greater and consequently the spread salt.

This is the case of Poste Italiane and on mutual bce apply a spread equal to 2.25%, compared with 1 .25% of loans linked to euribor. The same fate with Intesa-Sanpaolo, which revealed a spread of 2.15% on loan bce, against an average spread of 1.5% on loan euribor.

As often happens, the situation does not change much.
Also finished this period of low interest rates, the cost of borrowing will start the ascent.
So where is the convenience?
The rate stability.
While the Euribor interest is quite volatile, which has rapid ups and downs, the ECB rate is more balanced.
We choose the rate to go by.