The banking system and Debt
Posted: February 17th, 2010, 1:17 pm
ever wonder why EVERYONE (people, businesses, government) can be simultaneously in debt and for such huge amounts?
answer is that money comes from debt. if everyone paid off their debts, there would be no money. but, it is impossible to pay off all debts (as a society), as the money total owed by society is greater than the amount of money in circulation.
if you have about an hour, watch this series. It's easy to understand, and EXTREMELY informative. You WILL learn a thing or two from this. probably a whole lot more. if you think a bank loans out the money people deposit, you are only seeing the very tip of the iceberg.
On a side note, every dollar in circulation comes from the federal reserve (duh). the national debt is the money the U.S. (government) owes the federal reserve. problem is, every dollar the federal reserve issues (loans) to the government for us to use, is loaned at INTEREST. Meaning that if EVERY DOLLAR in circulation was paid back to the federal reserve, the U.S. would still owe the Federal reserve a SUBSTANTIAL amount of money....only way to prevent collapse is to perpetually increase the money supply.
answer is that money comes from debt. if everyone paid off their debts, there would be no money. but, it is impossible to pay off all debts (as a society), as the money total owed by society is greater than the amount of money in circulation.
if you have about an hour, watch this series. It's easy to understand, and EXTREMELY informative. You WILL learn a thing or two from this. probably a whole lot more. if you think a bank loans out the money people deposit, you are only seeing the very tip of the iceberg.
On a side note, every dollar in circulation comes from the federal reserve (duh). the national debt is the money the U.S. (government) owes the federal reserve. problem is, every dollar the federal reserve issues (loans) to the government for us to use, is loaned at INTEREST. Meaning that if EVERY DOLLAR in circulation was paid back to the federal reserve, the U.S. would still owe the Federal reserve a SUBSTANTIAL amount of money....only way to prevent collapse is to perpetually increase the money supply.